SCOP - cooperative
SCOP (cooperative and participatory society) cooperative: definition
A SCOP cooperative is a company in which employees hold at least 51% of the share capital and 65% of the voting rights. Unlike traditional companies, governance is democratic: 1 person = 1 vote, regardless of their share in the capital. The purpose of a SCOP is to sustainably support a collective working towards an economic and human project.
The SCOP is a cooperative business model focused on people, sustainable employment and the local area.
What are the characteristics of a SCOP cooperative?
A SCOP cooperative is distinguished by its shared governance, the central role given to employees and a specific regulatory framework.
Employee members
In a SCOP cooperative, employees hold at least 51% of the share capital and 65% of the voting rights. They therefore control the company. They participate in strategic decisions, vote at general meetings and elect the management. This structural involvement contributes to the stability and effectiveness of the model.
Democratic functioning
Unlike a traditional company, where influence is proportional to the capital invested, SCOP cooperatives are based on the "one person, one vote" rule, regardless of the number of shares held.
Governance is organised around three bodies:
- The General Meeting of Members, which is sovereign, approves the broad guidelines and elects the directors;
- The Board of Directors, which defines strategy and oversees the activities of management;
- The Executive Management, which is responsible for operational management.
Cooperative audit
Cooperative auditing is an external, regulatory and mandatory control specific to SCOP cooperatives. It ensures compliance with the principles and rules of cooperative law. Every five years (and every year for SCOPs without an auditor), this audit is carried out by a certified auditor appointed by the cooperative's General Meeting.
This audit covers the entire organisation of the company:
- legal, administrative and financial review,
- analysis of membership, democratic functioning and profit sharing,
- evaluation of the company's economic and social prospects.
The auditor may, for comparison purposes, compare the SCOP's practices with those of other similar cooperatives. The auditor draws on statutory documents, minutes, interviews and observations to produce a detailed report, including:
- a reasoned opinion on compliance with cooperative principles,
- proposals for corrective measures in the event of discrepancies,
- where applicable, a formal notice to rectify the situation.
Cooperative review enhances transparency and enables the cooperative to remain faithful to its project.
Profit sharing
Profit sharing in a SCOP cooperative is based on a balance between the sustainability of the business and fair redistribution.
- Company share – minimum 16%: allocated to undistributable reserves, it is used to strengthen equity, finance investments and secure the future of the structure. In practice, this share often represents 40 to 45% of the result.
- Employee share – minimum 25%: paid to all employees, whether or not they are members. It takes the form of profit-sharing or incentive schemes, in addition to remuneration. Distribution may be based on several criteria (attendance, salary, equality), as defined in the articles of association. In practice, this share amounts to around 40%.
- Shareholders' share: this variable share is paid in the form of dividends only if the articles of association so provide. It may not exceed either the company's share or the employees' share. It generally represents 10 to 15% of the profit.
Profit sharing in a SCOP cooperative thus serves to reward work with a fair and equitable distribution and to ensure the company's long-term viability thanks to undistributable reserves.
What are the advantages of a SCOP cooperative?
Adopting the SCOP cooperative model means choosing an economic project that combines performance, fairness and commitment.
Sharing, mutual aid and solidarity
The SCOP cooperative is based on the values of cooperation and collective responsibility. Each member is involved in the project and benefits from shared governance. This reinforces the principles of mutual aid, transparency and solidarity.
A model that promotes motivation and commitment
In a SCOP cooperative, meaning and work are aligned. Employee-members participate in defining a collective project, rooted in a desire to advance the company and, beyond that, the society in which we live. Being a member gives you the power to act: you contribute to decisions, you see the impact of your work and you benefit directly from the results. This recognition of each person's role, coupled with a value-driven objective, promotes both individual and collective commitment. For many, it is also a response to a need: the need to feel useful in a company that reflects who they are.
Greater job security
Statistically, SCOP cooperatives have a higher survival rate than other types of companies. According to a 2023 report, 76% of SCOPs are still in business five years after their creation, compared to 61% for French companies as a whole. This result can be explained by their prudent management, strong internal capitalisation and ability to collectively adjust decisions in the event of difficulties.
Easier access to solidarity-based financing
SCOP cooperatives benefit from a solid ecosystem: cooperative networks, solidarity investment funds, and tailored financing tools. They can mobilise public and private partners who support businesses with a strong social impact. This environment facilitates employee buyouts, growth projects, and transitions.
Local roots that help development
SCOP cooperatives, owned by their employees, are naturally inclined to establish long-term roots in their local area. They contribute to job creation, the transfer of know-how and the vitality of the local economy. Working closely with public, associative and economic actors, they are committed to long-term development.
Every year, cooperatives contribute to the creation of around 4,000 jobs in France, thanks to a supportive ecosystem that mobilises dedicated funds and assists project leaders in creating or transforming businesses into SCOPs.
At Upcoop, we are actively involved in developing this cooperative dynamic throughout the country. Through our membership of the SCOP Movement, the Regional Union of SCOPs in Île-de-France, Centre-Val de Loire and the French overseas departments and territories, and, since 2024, all the Regional Chambers of the Social and Solidarity Economy (CRESS), we share our expertise and support the creation of SCOPs.
A strong commitment to the Social and Solidarity Economy (SSE) ecosystem, the example of Upcoop
Since its inception, Upcoop has championed a cooperative and democratic business model based on value sharing, the common good, respect for people and environmental protection.
We are committed to working alongside numerous SSE partners — the Cooperative Movement, the Vyv Group, Crédit Coopératif, Macif, Biocoop — to promote the strength of this unique economic model. We actively participate in the life of the sector through events such as Commitment Day, the UDES (Union of SSE Employers) congress, and SSE Month.
We also collaborate with the association L’ESPER (L’Économie Sociale Partenaire de l’École de la République) to raise awareness of the SSE among younger generations, notably through presentations in schools and universities during SSE Week at school.
Finally, for more than 40 years, we have been providing financial support to the Institut de Coopération de Soutien International (ICOSI), an SSE organisation that promotes food self-sufficiency through the creation of agricultural cooperatives (CUMA) in Benin and Senegal.
Why cooperate with a SCOP cooperative?
Choosing to partner with a SCOP cooperative means joining forces with an economic player that puts sustainability and social impact at the heart of its strategy.
Being supported by a reliable and long-term partner
The survival rate of SCOP cooperatives – three-quarters of which are still active five years after their creation – is testament to their resilience. Their shared governance, their ability to capitalise internally and the direct involvement of employees make them solid and resilient structures. In times of turbulence as well as during periods of growth, they know how to make the right decisions at the right time – collectively and in the best interests of the project.
Strengthening your CSR approach
By partnering with a SCOP cooperative, organisations are taking the initiative to strengthen their CSR(Corporate Social Responsibility) approach and improve society. SCOPs support ecological transitions, promote local consumption, encourage the circular economy, and more. By working with them, organisations commit to a common mission: a fairer and more inclusive economy, promoting short supply chains, regional expertise and local employment.
Benefit from a human, responsive and committed relationship
A SCOP cooperative cultivates close relationships. Listening to needs, responsiveness and the quality of human connections are part of its values. SCOPs bring committed, autonomous partners to the partnership, capable of building tailor-made solutions and making a long-term commitment.
Enhance your image as a committed partner to stakeholders
Organisations that cooperate with SCOPs enhance their own social commitment. By partnering with a social and solidarity economy player, they affirm their choice for an economy that is more respectful of people, nature and territories — a message that resonates strongly with employees, users and the entire ecosystem.
A unique and democratic cooperative model
Upcoop has been a cooperative and participatory society (SCOP) since 1964. It now has more than 699 employee-members and remains the first mission-driven SCOP in France.
The cooperative is 100% owned by its employee-members, who guarantee its independence. The value created is redistributed equally, in a spirit of solidarity, fairness and shared responsibility. This model ensures balanced and consistent growth with a committed social and environmental approach.
Committed to social dialogue and collective progress, Upcoop applies the founding principle of "one person, one vote": each person has the same voting rights at the Annual General Meeting. Every four years, the employee-members elect the Group's Board of Directors, which then appoints the Chair.
The joint Board of Directors is composed of:
- 12 members elected by the employee-members,
- 3 representatives of the co-founding trade union confederations: CGT, CFDT and FO,
- 3 representatives of the company's Social and Economic Committee (CSE).
This mode of governance strengthens representativeness and balance in decision-making.
It embodies Upcoop's desire to promote a cooperative model based on active participation, transparency and shared responsibility.
A purpose centred on people and the local area
Our purpose, developed collectively, is enshrined in our statutes: "Cooperating sustainably for purchasing power that benefits society and the local community".
For more than 60 years, Upcoop has placed people at the heart of the economy. Committed by nature and by choice, it draws on a strong history of activism, champions a unique governance model and implements a structured CSR approach. This orientation is reflected on a daily basis in concrete actions in favour of sustainable food, culture for all, responsible consumption and territorial solidarity.
FAQ: answers to the most frequently asked questions about SCOP cooperatives
Do you have questions about how SCOP cooperatives work? Here are the answers to the most frequently asked questions.
What is the difference between a SCOP cooperative (cooperative and participatory society) and a SCIC cooperative (cooperative society of collective interest)?
Both are cooperative societies, but their purpose and governance differ. A SCOP cooperative is majority-owned by its employees. Its aim is to ensure the long-term viability of the business and jobs. An SCIC, on the other hand, brings together several stakeholders (employees, beneficiaries, local authorities, partners, etc.) around a project of collective interest. The objective is not only economic, but also societal.
Can a SCOP cooperative make a profit?
Yes, a SCOP cooperative is a business in its own right. It can generate profits, invest them, redistribute them and grow. What changes is the distribution of these profits: a significant portion is dedicated to employees and reserves, with a limit on the return on capital.
Which companies can become SCOP cooperatives?
Any private company (SARL, SAS, SA) can adopt SCOP status. This requires an amendment to the articles of association to comply with cooperative rules (democratic governance, distribution of profits, employee membership, etc.). This change is often supported by cooperative networks.
What proportion of all companies in France are SCOP cooperatives?
SCOP cooperatives represent a small part of the French economy. In 2024, there were 2,723 active SCOPs out of a total of more than 4 million commercial and civil companies in France. This represents approximately 0.07% of all French companies.
What is the role of employee-members in a SCOP cooperative?
Employee-members participate in the company's strategic decisions. They vote at general meetings, elect managers, approve accounts and can be elected to the board of directors. Their involvement goes far beyond the performance of their jobs: they contribute to the vision, management and sustainability of the cooperative.