An enterprise that is wholly owned by its workforce, who therefore appoint (or even elect) the organization's management. Cooperatives have been advocated as a means of job creation in depressed economic regions and as a way of avoiding the conflicts and inefficiencies of conventional firms. Although some cooperatives are highly successful, they remain a marginal form of enterprise within the capitalist economy. Prominent examples include Tower Colliery in south Wales and the Mondragon cooperatives of the Basque region in Spain.
Subjects: Human Resource Management.