Cooperative Director Responsibilities Roger G. Ginder- Economics Dept. Iowa State Univ.

 Traditional Responsibilities—View from 30,000 feet  Roles and Responsibilities ---- Ground level view from the perspective of common decision areas  Discussion and Other Topics

1. Board and Management Working Together to Accomplish Success for the Cooperative 2. Non-Adversarial Relationship 3. Mutual Respect 4. Mutual Trust

1. Represent the members in making decisions for the cooperative 2. Oversee the business to make sure it is financially sound and operates in the best interest of its member-owners

1. Decision making

 Establish objectives  Formulate policies  Approve programs and plans  Select general manager

Five Basic Board Functions: 1. Decision making 2. Advisory

 Advise members of changes requiring their approval.  Counsel with management.  Advise members of the condition, performance, and any significant issues affecting the cooperative

Five Basic Board Functions: 1. Decision making 2. Advisory 3. Trustee

Directors act as trustees for the members and the employees

 Monitor the stewardship of assets for protection of members capital  Ensure that the assets are used for the benefit of the membership in accordance with articles, by-laws and statutes.  Monitor and protect employee rights and interests

Five Basic Board Functions: 1. Decision making 2. Advisory 3. Trustee 4. Perpetuating

 Management  Develop potential managers.  Select and guide effective managers  Board  Maintain a capable and effective board  Maintain a high level of board knowledge and skills

Five Basic Board Functions: 1. Decision making 2. Advisory 3. Trustee 4. Perpetuating 5. Symbolic

 Communicate with management and membership  Represent the cooperative to the industry  Represent the cooperative to the community  Clearly Differentiate Personal Views From Board Views

How do we handle these responsibilities in actual practice?