STRUGGLING!

THE BOARD OF DIRECTORS IN ACHIEVING THE

GOALS AND TARGETS

(A STUDY OF CONSUMER CO-OPERATIVE SOCIETIES IN THE STATE

OF KUWAIT)

By

Ayoub Al-Muzaini
Dr. Ahmed Al-Zamil
Dr. Talal Al-Azimi

INTRODUCTION

Consumer Co-operative Societies are central to the Kuwait Society. They play an
important socio-economic role that cannot be isolated from the general economical
activity. They form an important part of the social life of Kuwait because of their
concern with both economic and social objectives. The societies enable consumers to
buy a wide range of goods and services. In recent years, they have contributed to the
progress and achievement of national industry by influencing trade, employment,
investments as well as strengthening production and demand. A large numbers of
private supermarkets that are in existence in the State of Kuwait, find it difficult to
compete with the cooperative societies because of the advantages of the Co-operative
system. The most important merits of the system include the return on buying, profits,
the cheap prices, varieties of goods, and more importantly the extension and
establishment of cooperative societies in the residential areas in the form of centers
and branches. Indeed, these incentives encourage consumers to buy from cooperatives
and accrue benefits to the economy as a whole.

Today, co-operatives operate successfully in every country and they are involved in
every form of activity, viz agriculture, fisheries, manufacturing, banking, insurance,
retail and wholesale trade and increasingly in such areas as health and social care
(Langmore, 1997). Consumer researches show that people value cooperatives and
believe that cooperatives offer quality goods and services (Benander, 1999). Among
the distinguishing features of Co-operative form of organization, are its voluntary and
democratic character, participatory nature and above all its commitment to high
ethical standards such as honesty, openness and social responsiveness and above all
caring in all its dealings and activities (Krishan, 1998).

Consumer Co-operative Societies are very important to the country’s economy,

because of their concern with the social and economic objectives. Co-operatives draw
community business into regional and national network and they are based on true
value and self-help, self-responsibility, democracy, equality, equity as well as
solidarity. Following the tradition of their followers, members of the co-operative
believe in ethical values of openess, social responsibility and caring for others (ICA
1996). Infact, the co-operative uniqueness with its own customers as owners, gives
the cooperative vital advantages in the market through member oriented activities and
benefits to the members who are becoming more and more loyal customers – a
tendency which has given birth to the idea of members club among the private
competitors (Sivertsen, 1996).

In this paper an attempt has been made to measure the managerial effectiveness of
Board of Directors while achieving the goals and targets.