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The Importance of Cooperatives' Corporate Social Responsibility to the Loyalty of Members

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  • Bortoleto, Fabiana Cherubim
  • Rogerio de Moura Costa, Davi

Abstract

Because of the ownership structure of cooperatives, the allocation of property rights in these organizations and other characteristics of cooperatives, the study of management mechanisms in the relationship between cooperatives and their members becomes relevant, in economic terms, as these companies struggle to maintain the loyalty of their members. The present study was undertaken to determine the effect of social responsibility activities on the loyalty of the members. In other words, we investigated whether the number of associates who conduct business with the cooperative (member’s loyalty) increases if the cooperative develops social responsibility activities. The results indicate, first, that use of specialpurpose reserves for technical, educational and social assistance programs and spending on education and the environment have no significant effect on the loyalty of the cooperative’s members. Second, the members’ loyalty increases if the cooperative has a greater capacity to provide services and generate higher returns for its members.

Suggested Citation

  • Bortoleto, Fabiana Cherubim & Rogerio de Moura Costa, Davi, 2012. "The Importance of Cooperatives' Corporate Social Responsibility to the Loyalty of Members," Journal of Rural Cooperation, Hebrew University, Center for Agricultural Economic Research, vol. 40(2), pages 1-20.
    • Handle: RePEc:ags:jlorco:249596
    DOI: 10.22004/ag.econ.249596
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    References listed on IDEAS

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    2. Staatz, John M., 1989. "Farmer Cooperative Theory: Recent Developments," Research Reports 52017, United States Department of Agriculture, Rural Development.
    3. Costa, Davi Rogério de Moura & Chaddad, Fabio Ribas & Azevedo, Paulo Furquim de, 2012. "Separação Entre Propriedade e Decisão de Gestão nas Cooperativas Agropecuárias Brasileiras," Brazilian Journal of Rural Economy and Sociology (Revista de Economia e Sociologia Rural-RESR), Sociedade Brasileira de Economia e Sociologia Rural, vol. 50(3), pages 1-16, June.
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    6. Aitziber Mugarra Elorriaga, 2001. "Responsabilidad y Balance Social hoy en día: un reto para las Cooperativas," CIRIEC-España, revista de economía pública, social y cooperativa, CIRIEC-España, issue 39, pages 25-50, November.
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