As the Chairman of the Co-operative Group has now resigned because of his involvement in the appointment of the wayward Paul Flowers,a key question to be asked is whether the mutual movement is any better equipped to engender ethical values and behaviours?
In theory, it could be argued that this is the case. Mutuals are owned differently with often a broader focus on their stakeholders and do not have to concentrate solely on shareholder return and profits.In theory the stakeholder or stewardship models of business can adopt fairer and longer term approaches providing valuable competitive alternatives to customers.
However, as we have seen recently, these business models are no better if the people at the top of them have lost sight of organisational and individual values and beliefs. Reputational damage goes far beyond the individual and organisation impacting the whole sector as we have also seen.
As shareholders start to demand more ethical behaviours and focus, the mutuals may be given a run for their money and need to re-group to clearly demonstrate their differentiation in the market.
This might mean a complete overhaul at the top!.
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