Comparison of organizational forms: association, club, trade union, foundation and cooperative, consortium

Introduction

Different forms of organizations exist in different societies around the world, serving specific purposes and structured in different ways. This article deals with six important organizational forms from an international perspective: association, club, union, foundation, cooperative and consortium. We will explain each term, highlight the differences and provide practical application examples from different countries.

1st association

Definition of

An association or federation is an organization made up of members who pursue a common goal, often in a specific professional or interest area. Associations can operate at national or international level and offer their members services, support and representation.

Features

• Representation of the interests of a particular group
• Often industry-specific or topic-oriented
• Can carry out lobbying work
• Offers networking opportunities for members

Examples

• International Chamber of Commerce (ICC)
• World Medical Association (WMA)
• International Federation of Association Football (FIFA)

Practical application

The International Chamber of Commerce (ICC) represents the interests of companies worldwide. It develops international business standards, offers arbitration services and promotes open trade and investment.

2. association

Definition of

A club or society is an organization that is formed by an association of people to pursue a common purpose. Clubs are often non-profit organizations and cover a wide range of interests, such as sport, culture, charity or social purposes.

Features

• Voluntary membership
• Democratic structure with a board and general meeting
• Often non-profit (but not necessarily)
• Pursuit of idealistic goals

Examples

• Rotary International
• Sierra Club (USA)
• Royal Society for the Protection of Birds (UK)

Practical application

Rotary International is a worldwide association of business people and professionals who are committed to humanitarian service, ethical behavior and peace. They organize local and global projects, such as polio vaccination campaigns or educational initiatives.

3. trade union

Definition of

A trade union or labor union is an organization of employees who come together to represent their common interests with regard to working conditions, wages and other professional matters. Trade unions negotiate collectively with employers and can organize industrial action such as strikes.

Features

• Representation of employee interests
• Collective bargaining with employers
• Legal advice and support for members
• Possibility of industrial action

Examples

• International Trade Union Confederation (ITUC)
• Unite (UK)
• American Federation of Labor and Congress of Industrial Organizations (AFL-CIO)

Practical application

The International Trade Union Confederation (ITUC) represents 200 million workers in 163 countries. It campaigns for global labor rights, coordinates international campaigns and supports trade unions in developing countries.

4th Foundation

Definition of

A foundation is an organization that permanently pursues a specific purpose by providing assets. Foundations can be charitable and focus on various areas such as education, science, art or social issues.

Features

• Permanent purpose, determined by the founder
• Assets as a basis
• Often tax advantages
• Can award grants or carry out own projects

Examples

• Bill & Melinda Gates Foundation (USA)
• Wellcome Trust (UK)
• Volkswagen Foundation (Germany)

Practical application

The Bill & Melinda Gates Foundation supports projects worldwide in the areas of health, education and poverty reduction. For example, it funds vaccination campaigns in developing countries and research into neglected diseases.

5. cooperative

Definition of

A cooperative is an association of people who come together for the purpose of joint economic development. Cooperatives work democratically and their members benefit from the cooperative's services or products.

Features

• Promotion of the economic interests of members
• Democratic decision-making structures (one member, one vote)
• Common ownership and control
• Often in areas such as housing, agriculture or banking

Examples

• Mondragón Corporation (Spain)
• Fonterra (New Zealand)
• Crédit Agricole (France)

Practical application

The Mondragón Corporation in Spain is a network of worker cooperatives operating in various sectors, from industry to retail. The employees are also owners and have a say in important company decisions.

6. consortium

Definition of

A consortium is a temporary association of companies, organizations or institutions that come together to pursue a common goal or carry out a specific project. Consortia are often formed to pool resources, share risks or tackle complex tasks that a single organization could not carry out effectively on its own.

Features

• Temporary cooperation
• Shared use of resources and risk sharing
• Mostly project-related or purpose-oriented
• Maintaining the legal independence of the members
• Can be cross-industry

Examples

• CERN (European Organization for Nuclear Research)
• Star Alliance (Aviation)
• Airbus Industries (originally a consortium of European aviation companies)

Practical application

CERN (European Organization for Nuclear Research) is an example of a scientific consortium. It combines the resources and expertise of 23 member states to operate large-scale research facilities such as the Large Hadron Collider and to research fundamental questions of particle physics. By working together in the consortium, the participating countries can realize projects that would be too costly or complex for individual countries.

Comparison and differences

• Purpose:
  • Associations: Representation of the interests of a specific group
  • Associations: pursuit of common (often idealistic) goals
  • Trade unions: Representation of employee interests
  • Foundations: Permanent pursuit of a purpose defined by the founder
  • Cooperatives: Economic promotion of the members
  • Consortia: Temporary cooperation for specific projects or objectives
• Membership:
  • Associations and clubs: Voluntary membership
  • Trade unions: Voluntary membership of employees
  • Foundations: No members in the true sense of the word
  • Cooperatives: Membership through the acquisition of cooperative shares
  • Consortia: membership of organizations, often contractually regulated
• Financing:
  • Associations and clubs: Mainly through membership fees
  • Trade unions: Through membership fees
  • Foundations: Through income from the foundation's assets
  • Cooperatives: Through business activities and membership fees
  • Consortia: Through contributions from members and/or project-related funding
• Decision-making structures:
  • Associations and clubs: Democratic with board and general meeting
  • Trade unions: Hierarchical with democratic elements
  • Foundations: Through the foundation board and board of trustees
  • Cooperatives: Strictly democratic (one member, one vote)
  • Consortia: Usually regulated by contract, often with a steering committee
• Legal basisThe legal basis varies from country to country, but the following generally applies:
  • Associations and clubs: mostly registered as non-profit organizations
  • Trade unions: Often special legal status with collective bargaining autonomy
  • Foundations: Foundation law, varies greatly between countries
  • Cooperatives: Cooperative law or company law
  • Consortia: Contract law, may vary depending on the project and countries involved

Conclusion

Each of these forms of organization has its own strengths and areas of application, which are used worldwide. Associations and trade unions are particularly effective in representing interests, while clubs cover a wide range of social activities. Foundations can pursue specific long-term and independent purposes, and cooperatives offer a democratic means of joint economic activity. Consortia allow organizations to join forces for specific projects or goals without giving up their independence.

The exact structure and legal classification of these organizational forms may vary from country to country, but the basic principles and functions are globally comparable. The choice of the right organizational form depends on the specific objective, the people involved and the respective national legal framework.