Governance under the perspective of the institutional economics: A study in a Fair-Trade cooperative

Abstract

This study deals with corporate governance in cooperative organizations from the perspective of Institutional Economics. We sought to verify which of the aspects related to agency, transaction, control and influence costs stood out in the governance structure of the analyzed cooperative. As a study environment, a Fair-Trade certified family farming agricultural cooperative, located in the south of Minas Gerais, was chosen. To answer these objectives, the case study was adopted through a structured interview. The results show that, in a simple organizational structure and with traditional management, the democratic costs, from the previous analysis of new members, to the active presence of nucleus councils in the decision spaces, to the constant search for external training through hiring of consultancies, stand out and directly contribute to greater transparency and good performance of the cooperative, since some of the typical problems of cooperatives are minimized, according to the theory of Institutional Economics.