Many industries have struggled in the past two years due to the COVID-19 pandemic, but it seems the pandemic was unable to tear down the co-operative (co-op) and mutual sector, which saw 10% revenue growth in 2020/21, according to the Business Council of Co-operatives and Mutuals (BCCM).
The BCCM's latest annual National Mutual Economy Report (NME), which launched in Sydney at a summit of 40 CEOs from Australia's top 100 co-ops and mutuals, found that the largest co-operatives and mutuals had an average annual growth rate of 28.7% in pre-tax earnings across a five-year trend, with the outstanding performances recorded by those operating in agribusiness, motoring, and financial services.
BCCM CEO Melina Morrison said the sector's return to growth in the 2020/21 financial year after a difficult 2019/20 demonstrated the resilience of the business model and purpose-driven ethos of co-ops and mutuals.
“It is pleasing to see the sector rebound strongly despite the challenges posed by COVID-19 as well as recent climate-related disasters such as bushfires and flooding,” Morrison said. “Time and again throughout recent crises, we have seen co-operatives and mutuals use their local knowledge and networks to find solutions that put members first, investing capital wisely to ensure the best outcomes for the communities they serve.”
For the first time, the NME measured the investments made by co-ops and mutuals into their communities, with data collected from 67 major co-ops and mutuals showing that 9.4% of after-tax profits were re-invested into community projects, such as education, health, and welfare.
The report also highlighted the co-op and mutual sector's significant progress on gender equality, with 17% of the top 100 co-ops and mutuals reported having a female CEO, a dramatic jump from only 3% in 2016. It also showed an improvement in the representation of women chairs, with 21% of the co-ops and mutuals reported having chaired by a woman in 2020/21, up from only 15% in 2016.
Morrison explained that co-operatives and mutuals have focused on gender equality because their business model and governance structures were set up to encourage inclusion.
“It's unclear how the events of the pandemic and its impacts will affect the long-term representation of women in Australia's workforce, but we know that further gains in gender diversity will only stem from a continued commitment to co-operative values that promote inclusion,” she added.
