Corporate governance and effective business strategy were among the main topics up for discussion at the 40th national conference of the Irish Co-operative Organisation Society (ICOS), which was held in the Convention Centre in Dublin on Tuesday.

In a discussion on corporate governance within the Irish agri-food sector, and particularly in the co-op movement, Michael Parsons, a director on the board of Kilkenny mart co-op, said the ultimate employee of any company is the chief executive. “But while the board can delegate authority to the chief executive for the day-to-day running of the business, it cannot delegate responsibility,” he added.

Parsons said that the boards of co-ops and companies must have proper oversight of the executives to ensure that company strategies are being implemented correctly and with compliance, above all else.

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The conference also heard how greater education and improving financial literacy of representatives on co-op boards was crucial to proper corporate governance in the co-op movement.

John McStay, a partner of the McStay Luby law practice, described good corporate governance as being about education and strong enforcement. McStay said that there is enough governance legislation already in Ireland and that what needs to change is at a more basic level.

“It’s very important that within co-ops there is an ethos of educating people, particularly those who want to improve themselves,” said McStay.

He added that farmers should not join the co-op board if they are unhappy with their milk or grain price. Instead, farmers need to ask themselves do they have the skills required to join a board and, if so, will they help make the co-op better, said McStay.

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