DEFINITION OF A
CO-OP
A co-operative
is an autonomous association of persons united voluntarily
to meet their common economic, social, and cultural needs
and aspirations through a jointly owned and democratically
controlled enterprise.
HISTORY OF THE COOPERATIVE
MOVEMENT
Today’s cooperatives trace their origins to England’s
Industrial Revolution. In the first half of the nineteenth
century, living conditions were extremely harsh for working
class people in the textile milling towns of northern
England. Mills workers labored long hours under dangerous
working conditions for low pay. Plagued by unending poverty,
they were forced to buy food on credit from merchants who
charged high prices for goods that were poor quality and
often adulterated. Owning no property, workers were unable
to vote. These conditions gave rise to labor movements,
which drew great numbers of followers.
During this period, cooperative initiatives were common,
offering their working class members the promise of economic
opportunity and democratic control. But until the founding
of the Rochdale Equitable Pioneers Society in 1844, none
were successful. When the self-described "Rochdale Pioneers"
opened their first cooperative food shop, they sold only
five products - butter, flour, oatmeal, sugar, and candles -
but promised to provide members with "purest provisions,
giving full weight and measure." They went on to establish
many other member-owned businesses.
Learning from earlier failures, the founders of the Rochdale
Society developed a series of operating principles, which
ensured their success and the success of hundreds of
cooperatives in England and beyond which soon imitated them.
Today, these basic principles still guide cooperatives
around the world.
VALUES
Co-operatives are based on the values of self-help,
self-responsibility, democracy, equality, equity and
solidarity. In the tradition of their founders, co-operative
members believe in the ethical values of honesty, openness,
social responsibility and caring for others.
PRINCIPLES
The cooperative principles are guidelines by which
cooperatives put their value into practice:
1st Principle: Voluntary and
open membership
Cooperatives are voluntary organizations, open to
all persons able to use their services and willing to accept
the responsibilities of memberships, without gender, social,
racial, political, or religious discrimination.
2nd Principle: Democratic
member control
Cooperatives are democratic organizations
controlled by their members, who actively participate in
setting their policies and making decisions. Men and women
serving as elected representatives are accountable to the
membership. In primary cooperatives members have equal
voting rights (one member, one vote) and cooperatives at
other levels are organized in a democratic manner.
3rd
Principle: Member economic participation
Members contribute equitably to, and
democratically control, the capital of their cooperative. At
least part of that capital is usually the common property of
the cooperative. They usually receive limited compensation,
if any, on capital subscribed as a condition of membership.
Members allocate surpluses for any of all of the following
purposes: developing the cooperative, possibly by setting up
reserves, part of which at least would be indivisible;
benefiting members in proportion to their transactions with
the cooperative; and supporting other activities approved by
the membership.
4th Principle: Autonomy and
independence
Cooperatives are autonomous, self-help
organizations controlled by their members. If they enter
into agreements with other organizations, including
governments, or raise capital from external sources, they do
so on terms that ensure democratic control by their members
and maintain their cooperative autonomy.
5th Principle: Education, training
and information
Cooperatives provide education and training for
their members, elected representatives, managers, and
employees so they can contribute effectively to the
development of their cooperatives. They inform the general
public - particularly young people and opinion leaders -
about the nature and benefits of cooperation.
6th Principle: Cooperation
among cooperatives
Cooperatives serve their members most effectively
and strengthen the cooperative movement by working together
through local, national, regional, and international
structures.
7th Principle: Concern for
community
While focusing on members needs, cooperatives
work for the sustainable development of their communities
through policies accepted by their members.
These 7 principles were
adopted in Manchester (UK) by the General Assembly of the
International Cooperative Alliance (ICA), 23 September 1995,
on the occasion of the Alliance’s Centenary. The Statement
was the product of a lengthy process of consultation
involving thousands of cooperative around the world.
Dr.
James Peter Warbasse, who wrote about the
implications of cooperation and believed
strongly in the co-op movement, created the twin
pines emblem for use in the United States. In
describing the significance of this symbol, he
said: The pine tree is the ancient symbol of
endurance and fecundity. More than one pine is
used to signify cooperation. The trunks of the
trees are continued into roots, which form the
circle, the ancient symbol of eternal life,
typifying that which has no end. The circle
represents the all-embracing cosmos, which
depends on cooperation for its existence. The
two pines and the circle are dark green, the
chlorophyll color of human’s life principle in
nature. The background within the circle is
gold, typifying the sun, giver of light and
life. The twin pines symbol isn’t as common in
the United States as it once was, since many
co-ops have replaced it with their own logos.
However, this symbol is still frequently used by
co-ops in other countries, especially throughout
Central America, in India, and in other
developing regions. |
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