Sharing Power and Decision-Making
- Statement of Values with Regard to Shared Power and Decision-Making. Loconomics aims to 1) create an equal opportunity for Owners to participate in governance, 2) empower all Owners with the confidence and motivation to influence the activities and choices of the organization, and 3) integrate into Loconomics the wisdom, needs, and ideas of a broad spectrum of its Owners through various channels of communication. Loconomics will aim to actively counteract the tendency for power to concentrate among highly influential or privileged individuals.
Overview of Loconomics Governance. Loconomics is a pioneer in the Platform Cooperativism movement and stewards this innovative ownership structure with excitement and special care to ensure its long-term success. Because managing the desires of potentially thousands of Owners is difficult and complex, both a polycentric governance structure and a collaborative design approach have been chosen. It ensures a checks and balances of power in creating, maintaining, and governing the best possible platform for all Owners. The primary roles within Loconomics governance are summarized here and explained in greater detail in subsequent sections:
- Board of Directors: Loconomics shall be managed under the oversight and care of the Board of Directors, with the management of the day-to-day operations delegated 4 to Staff Trustees. As described in detail below, one Director shall be elected by Employee Owners, two Directors appointed by nonprofit organizations5, and the remainder of Directors shall be Service Provider Owners elected by all Owners.
- Staff Trustees: Loconomics shall build a team of Staff Trustees to whom the Board shall delegate day-to-day operations. Staff Trusteeship is a model of organizational governance that views most or all staff members of the organization as trustees of its mission for the benefit of stakeholders. The Staff Trustees will primarily propel and steer the organization with oversight from the Board and collaboration with Owners. Each “Staff Trustee” becomes a point of direct accountability for the organization, listening to and responding to the needs of Owners. Staff Trustees have heightened responsibility, and, as such, heightened influence. In order to carry out their heightened responsibilities, each Staff Trustee has a great deal of agency and autonomy to respond appropriately in the best interests of the Owners and the Cooperative.
- Service Provider Owners: Service Provider Owners elect and make up a majority of the Board of Directors, take part in certain major decisions described in these Bylaws, shall be encouraged to and have the opportunity to bring ideas and proposals to the Loconomics Board of Directors and Staff Trustees, via processes described below, and shall otherwise participate in the shaping of Loconomics through participation as collaborators in helping Staff Trustees design new features and benefits. As Loconomics grows, Service Provider Owners will also have the opportunity to create professional and/or regional guilds to help them engage and grow professionally with offline activities with support from Staff Trustees.
- Advisory Board: The Board of Directors shall appoint an Advisory Board consisting of at least 3 and no more than 20 individuals that the Board believes will offer helpful advice, expertise, support, and skills that will aid in the success of Loconomics. The Advisory Board shall serve an advisory role and shall have no power to make decisions that are binding on Loconomics. The terms of Advisory Board members shall be up to two years and may be renewed by the Board. The Board of Directors shall invite Owners and Staff Trustees to offer suggestions and nominations for the Advisory Board.
Conflict of Interest Policy. To ensure that decisions are made with the best interests of the Cooperative in mind, in the event that Loconomics contemplates a contract or transaction in which a Director or Staff Trustee has a material financial interest, Loconomics shall follow the procedures described in the Conflict of Interest Policy, attached as Appendix 1.
- Conflict Resolution and Grievances Procedures. While this polycentric governance structure seeks to maintain a system of checks and balances, conflicts may arise. To help navigate any conflicts or grievances among or between Service Provider Owners, Staff Trustees, and Directors, Loconomics shall follow the procedures described in the Conflict Resolution and Grievances Procedures Policy.
4. See section 5210 of the California Corporations Code. ↩
5. 5 See section 12360(d) of the California Corporations Code. ↩