A mutual organisation is a company that is owned by its members, who are usually also its customers, rather than by shareholders interested in receiving a return on their investment.

There are several types of mutual organisations in Australia, including credit unions, some health insurers, some superannuation funds and motoring organisations like the RACV.

Mutuals matter because profits generated are invested back into the company for the benefit of its members, customers and the community. This is in contrast to publicly traded companies where profits are distributed to shareholders without necessarily benefiting the company’s customers.

This means that mutuals can focus entirely on benefiting their members, whereas publicly traded companies tend to focus on creating profits for shareholders.