The International Cooperative Alliance and the Dilemma Between Cooperative Societies and Commercial Companies in Relation to the Principle of Cooperation Among Cooperatives, a Need for Corporate Ecosystem

In Spain, second-degree cooperative societies and capital companies—such as limited liability companies and joint-stock companies—represent distinct models of business organization, each offering specific advantages and presenting particular challenges. Second-degree cooperatives are constituted by primary cooperatives with the aim of pursuing shared objectives, primarily focused on enhancing joint production, commercialization, and the provision of services, while adhering to cooperative principles such as democratic governance, member participation, and a social purpose. Nevertheless, these entities often face constraints in terms of growth potential, access to financing, and managerial complexity due to their inherent cooperative structure. Conversely, capital companies—particularly limited liability and joint-stock companies—are generally more adaptable to market dynamics and offer greater stability for long-term initiatives. These entities afford shareholders limited liability, enhanced access to external capital, and a more straightforward mechanism for profit distribution. Consequently, capital companies are frequently favored for large-scale or complex ventures, especially those requiring substantial investment and risk exposure, such as in the agricultural industry or major industrial projects. In conclusion, while second-degree cooperatives serve as a valuable mechanism for cooperative integration and collaboration, capital companies often provide greater flexibility and financial robustness in specific contexts—particularly when addressing the demands of industrialization, commercialization, and risk management in an increasingly dynamic market. The selection between these organizational forms largely depends on the nature of the project, the scope of its growth ambitions, and the cooperative’s capacity to reconcile its foundational principles with economic imperatives.