The Global 300 is probably the most comprehensive listing of global co-operative and mutual business organisations ever compiled. In its present form this first ever listing shows the size and importance of the broader co-operative and mutual sector at a global level. But the exercise itself, compiling such a list - particularly for the first time - does raise a series of major methodological issues.

Simple but complex

It is seemingly a simple task to list the largest co-operative and mutual businesses in the world. However, the deeper one gets into this exercise the more complex it becomes. The real problems (apart from actually accessing and collecting the data from a wide range of sources) are around the definitions of what exactly a co-operative/mutual is, the various legal and corporate forms these may take, which ones are in, which are out for example, and differing national and sectoral experiences around the world. It is on the margins that the problems tend to occur. What is OK in one country or sector may not be the same national experience or tradition in another. I thought I would set out some of these issues and the positions we have taken in response to these to assist you in the reading of our listing and to help you provide input about possible deletions or inclusions for future editions of the list.

What is being collected?

We are attempting to collect a range of financial and organisational information, not all of which we intend to publish and release immediately. Our focus is on commercial or business oriented co-operative and mutual organisations. We are not collecting data on national apex or federation type organisations unless they bring the underlying co-operatives etc into a consolidated, audited set of accounts, balance sheet, P&L etc. We are attempting to include only the top level of such consolidations – e.g. Coop Norden for Norway, Sweden and Denmark and the Co-operative Group (UK) rather than the underlying businesses or co-operatives below group level.

Our database currently has details on almost 700 of the world’s largest co-operative and mutual businesses. The database allows us, at any time, to generate a Global300 listing based on turnover. Our starting point was to collect data on organisations with an annual turnover of over USD 100 million. It is likely, however that the final cut off point for inclusion in the Global300 will be closer to USD 500 million. We have been attempting to collect, at least in part, the following information:

• Financial: specifically annual turnover and assets. We have concentrated on the financial year (FY) 2004, although we have been collecting details for other years and have a large amount of financial data for FY 2005. The Global300 ranking is currently based on turnover for FY 2004. We are also collecting FY end dates to enable currency conversion from the local currencies in which we are collecting the data into USD. It is our intention to annually publish a Global 300 ranking, hopefully improving the methodology and information every year. In between these annual editions we will be carrying more detailed financial information, updates and analysis on this website. We will also for instance carry any late (and material) financial information not received by the time of our printing deadline.
• Other data: we are collecting data on employees and members.
• Organisational details: the name of the organisation, email, website, postal, physical addresses, phone, fax etc.
• Country/Region: we are collecting information on the home country and region, plus also trying, where possible, to identify the other countries the organisation operates in.
• CEO: name and contact details
• GCIS – this is the Global Industry Classification Standard (see http://www.mscibarra.com/products/gics/). We have used this international classification system to help analysis and comparisons across industries, countries and types of organisations, i.e. between co-operatives and other companies.
• Description of itself: for each co-operative/mutual e.g. for Fonterra – “the largest dairy exporter in the world”.

From this wider selection of material we publish the following information:

• Rank (by turnover)
• Name of organisation
• Country of origin
• GCIS
• Year of establishment
• Turnover FY 2004 in USD
• Assets FY 2004
• Website address

Where has it been collected from?

There are three main sources:

• Extensive web searches
• Existing databases, at national, regional and sectoral levels plus more general corporate listings
• Additional material provided directly by individuals or organisations

A number of fairly extensive national databases exist. Three examples are quoted:

USA

• National Cooperative Bank’s Top 100 for the US. (This has been the model for the Global 300 exercise.)

Canada

• Canadian Co-operatives Secretariat

UK

• Co-operatives^UK - movement wide statistics
• Building Societies Association

There are also some good databases of information held sectorally at global, regional, (particularly European) or national level. Some examples are:

Insurance

• ICMIF at global level

Banking

• European Association of Co-operative Banks

Consumer

• Eurocoop at a European level

Agriculture

• At a global level examples include Netherlands Institute for Co-operative Entrepreneurship (NICE)
• At a regional level the General Confederation of Agricultural Co-operatives in the European Union (COGECA)
• Examples at the national level include United States Department of Agriculture Co-operative Service

There are several issues which arise in bringing together information from these existing databases plus a large amount of material from independent research as well as additional references from specific sources - consistency of collection and analysis standards being just the most obvious one. Also, in selecting a criterion for the ranking, we have chosen turnover, similar to the USA’s NCB Top 100 list. However it obviously understates or possibly discriminates against, for example financial co-operatives which more normally tend to rank by assets, see WOCCU for credit unions, etc.

The launching of the Global300 list in Lyon on 25 October is merely the start of the journey, not the end. One of the most obvious and necessary outcomes will be I hope the start of work towards the development of a global set of collection standards and agreed definitions for projects like the Global300 and its equivalents at national, regional and sectoral level.

The Global300 Data Validation Group which has been set up for the purposes of assisting with the completion of the ranking could provide a possible starting point for the formation of such a global data group.

The current composition of the group includes:

• Garry Cronan, Global300 Director
• Hassan Kashef, Global300 Project
• Frank Onno van Bekkum, NICE
• Barry Silver, NCB
• John Dunn and Dave Chesnick, USDA Co-op Service
• Dave Lenton, ICMIF
• Anne Lavoie, Desjardins Co-operatives and/or Mutuals

The Global300 list includes in its current form both co-operatives and mutuals. Examples of some of the mutuals include a range of financial and mutual insurers, health insurance organisations etc, plus Building Societies in a number of countries. Credit unions are also included. We have decided not to limit the list to co-operatives, because in some countries there is no appropriate legislation and some organisations that would in other circumstances be incorporated as co-operatives form as mutuals instead. The financial media in many countries, particularly those most subject to extensive demutualisation, often don’t distinguish the fine line which exists between mutual and co-operative structures. They see both as a model which beyond a certain size should inevitably convert. In many ways the arguments made against co-operatives and mutuals by the media unites us. Likewise, the issue of finding a definition of a co-operative business that applies across all countries and sectors is somewhat problematic. Many co-operatives use other corporate forms, such as subsidiary company structures where they may have either total or majority ownership. So, at what point short of demutualisation are some of these underlying or supporting co-operative structures no longer co-operative?

A conservative approach

Obviously the first test for inclusion in the list is that the organisation has a co-operative or mutual character and is recognised as such by the local or sectoral movement. If it is an ICA member or a member of an ICA sectoral organisation then it should be in the list. Many mutual insurers are members of ICMIF but not members of the ICA. ICMIF is the ICA’s sectoral insurance organisation. Our response to these difficult issues is to be conservative. If in doubt leave it out! Firstly, we are checking from a sectoral perspective and then from a national perspective. If it passes both tests it is in. If not, then we would favour leaving it out, but would nevertheless consult all relevant partners.

If you feel strongly that any organisation included in the list should not be there, or vice versa, please let us know and we will give every consideration to your request. We are seeking in this exercise, particularly this first time, to take a generally cautious approach. Also, please advise us of any co-operatives we may have missed.

Garry Cronan, Global300 Director
Geneva, 4 October 2006