The article reviews the financial and economic benefits acquired by the community and employees of Lincolnshire cooperatives since its establishment in the region. It emphasizes on the strenuous economic status of the members of the cooperatives who have benefited in different ways from the existence of the cooperative. Members receive dividends, and bonus offers are given when they purchase local products. This has been used as a motivation strategy to increase their purchase of local products thus developing the region. The bonus can be termed as a payment for their royalty to their own goods.
The employees of the cooperative also benefit from salaries and wages received monthly after working in the cooperative which has assisted them improve their livelihoods. The cooperative has over 2,700 employees in different departments who are remunerated in accordance to their duties (Lidbetter). This has increased the economic opportunities available in the region increasing their capability to support themselves. The circulation of money in the community is based on the fact that the wages, dividends and bonus paid to the members are returned to the cooperative in the form of purchases. This money acts as a cash outflow when offered to members and later they use it to purchase commodities from the cooperative thus becoming an inflow. The cooperative offers different products such as meat, coffee and bread which are purchased by the locals.
The ethical issue concerning the article is attributed to the expected conduct of employees and management of the cooperative towards the community. The community is the prime reason for its existence increases the need to ensure the management is ethical towards the community. Cooperatives have an ethical role to play as they form the center of the economic developments in a region. The employees are acquired from the community thus have strong relations with the consumers increasing their performance in the cooperative. The cooperative has retained the love local slogan and offering donations and loans to the members indicating their role in the community (Lidbetter). Each business has a responsibility to remain ethical while relating to the community which is determined by the share of benefits which trickles to the community. The cooperative can, therefore, be rated as ethical and responsible in relation to community building and improving the financial status of its members. It offers advice to members on different actions they can take to ensure they acquire financial stability by venturing into diverse business ideas.
Ethical conduct of businesses is essential as it defines their relation with the society and the value of that organization to the people. The Lincolnshire cooperatives can be analyzed to have ethical conduct as it has a strong relation with its employees and consumers. It is a community based organization interested in the development of the community as its principal objective rather than making profits. Increased involvement in community development and preservation of local produces can, however, be done to resolve any ethical issues facing the cooperative. This includes getting involved in cleanup projects of the environment and funding youth empowered projects to ensure they become financially stable. They can also offer loans to local producers and farmers to ensure their produce is of high quality indicating their social responsibilities.
Lidbetter, Ursula. Why co-operation should be at the heart of the local economy. The Guardian. February 2013. Web. Viewed on April 3, 2013 from http://socialenterprise.guardian.co.uk/social-enterprise-network/2013/feb/22/co-operation-heart-local-economy