1. Introduction

‘Co-op Group loses £2.5bn after “fundamental failings in management and governance”’, ‘Co-operative Bank ex-Chairman could face criminal charges over drugs video’, ‘“Crystal Methodist” Paul Flowers admits drug charges’. Such were the UK media headlines at the end of 2013 and into the first half of 2014. The Co-operative Group, a business spanning 150 years, once recognised as the largest co-operative on the globe and a household name in the UK, was under fire. How does an organisation that prided itself on strong ethical values and customer service end up with a crack-smoking chairman; a Methodist minister with no relevant experience? The conclusion, after a review of the group governance structure that was eventually mandated by the board, was that ‘The Co-operative Group, which was dubbed “ungovernable” by its departing chief executive, had been run by a “failed” and underqualified board that took “breathtakingly value-destructive” decisions.’