This paper explores ways to expand outcome measurement and economic
impact analyses of co-operatives. The author analyzes methods and concepts
to measure traditional and non-traditional economic and non-market out-
comes and benefits to co-op members and their communities. In particular,
the author examines positive human, social, cultural, and environmental
“externalities” and “multiplier” effects of co-operatives and worker-owned
enterprises. Included are preliminary findings about both individual and
community wealth accumulation and asset development, enhanced eco-
nomic, social and democratic skills, and leadership development through
co-operative ownership. Reporting on preliminary research in communities
within the U.S.A., the paper proposes possible indicators and methods to
measure such outcomes and impacts. The author also provides a case study
of the Federation of Southern Co-operatives/Land Assistance Fund.

The impacts of co-operative businesses on their members and communities
are often transformational. The ability to measure and evaluate not just
traditional business achievements, but also non-traditional benefits and the
impacts of both on member-owners, customers (if separate) and the
surrounding community – i.e., on all the stakeholders – is important to
strengthen co-operative enterprises themselves and the co-operative
movement as a whole. How to capture and illuminate such benefits is the
challenge. Understanding and documenting the full panoply of co-opera-
tive outcomes requires and expanded notion of impacts and outcome meas-
urement, and the creative use of interdisciplinary and possibly newly
designed tools. Social auditing and social accounting methods are increas-
ingly being used to help capture and measure the human as well as the eco-
nomic inputs to, outcomes of, and benefits from not-for-profit organizations
and co-operatives (see for example Quarter, et. al., 2002). Economists also
have methods to examine and calculate the positive externalities and
spillovers gained by communities from the presence of economic activity.
This paper investigates ways and reasons to utilize, apply and adapt these
and other methodologies to analyze co-operative impacts.

I have begun to combine theoretical and applied research on outcome
measurement and evaluation of economic impacts to co-operatives. I
use participatory community-based research to involve co-op members, co-
op leaders and co-op developers in articulating social, cultural and politi-
cal as well as economic impacts, and identifying relevant indicators to
measure traditional and non-traditional outcomes. In addition to gather-
ing information from workshops and presentations and discussions at con-
ferences, I utilize case studies and annual reports to glean co-op impacts
and benefits, and understand a co-op’s mission and history. I also have begun
to use informal interviews, and in the future plan to use more formal inter-
views and focus groups, and formal surveys to continue to tease out articu-
lation of issues and indicators of outcomes and benefits.

In this paper I delineate some of the kinds of indicators and measures
that begin to illuminate co-operative impacts on members and communi-
ties. I suggest ways to identify, document and evaluate the outcomes
and economic impacts of co-operative businesses. I discuss what we are
beginning to know and understand, emerging concepts and indicators,
continuing questions, and research needs. I then provide a specific exam-
ple of a preliminary case study of the impacts of the Federation of Southern
Co-operatives/Land Assistance Fund (FSC/LAF). I end with some conclu-
sions.