Multi-stakeholder cooperatives (MSCs) are co-ops that formally allow for governance by representatives of two or more “stakeholder” groups within the same organization, including consumers, producers, workers, volunteers or general community supporters
The simplicity of the definition—members of two or more parties joining together to travel a common path—belies the complexity of the practice. Consciously choosing to focus on commonalities rather than differences does not necessarily come naturally to people, and there are few accessible role models for this approach in the business sector. Replacing animosity or indifference with understanding and common purpose requires a set of communication and interpersonal skills that many of us may be unsure we possess. Because of this, some co-op observers have fretted about the potential for high transaction costs in a multi-stakeholder approach and have predicted failure. Interestingly, however, recent research from Canada suggests that such conclusions are not supported by empirical evidence, and in many diverse situations, multi-stakeholder cooperatives are thriving.