Cooperatives
A
cooperative is a non-profit based service organization owned and
operated by its Members. In many ways it's like any other business;
but in several important ways it's unique and different. A cooperative
business belongs to the people who use it - people who have organized
to provide themselves with the goods and services they need. A
cooperative operates for the benefit of its Members. These
Member-owners share equally in the control of their cooperative. The
Members elect directors which, in turn, hire management to manage the
day-to-day affairs of the cooperative in a way that serves the Members'
interests. The cooperative ideal is one of people working together for
a common goal; a common good.
Rochdale Principles
The
cornerstones upon which cooperatives are built are a set of principles,
known as the “Rochdale Principles”, which date back to nineteenth
century England. At a time when England was in the midst of social and
economic change brought on by the Industrial Revolution, a group of
struggling weavers and tradesmen banded together to organize what is
considered the first modern cooperative.
From that alliance
for mutual advantage, a group of principles were developed, which
became known as the “Rochdale Principles”. Today’s successful modern
cooperative businesses are still based on these tried and true original
principles. They are:
- Open and equal Membership to all;
- Democratic control - one member, one vote;
- Education of members, employees and the general public as to the benefits of cooperative enterprise;
- Emphasis on service rather than profit;
- Community involvement and working with other cooperatives for mutual advantages and a better society.
Modern Cooperatives
Today these simple principles form the basis for modern cooperatives of every description, from
agricultural and consumer cooperatives, to financial and utiltity service cooperatives. Overall, these
enterprises are characterized by self-help, operations at low cost, and service to their Members and society