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  1. 1. Introduction to Co-operatives By Randal Adcock, M.A © 2004
  2. 2. Introduction to Co-operatives <ul><li>Contents </li></ul><ul><li>Co-operatives by Comparison </li></ul><ul><li>Types of Co-operatives </li></ul><ul><li>Co-op Principles </li></ul><ul><li>Co-op Values </li></ul><ul><li>Co-op Advantages </li></ul><ul><li>Co-op Challenges </li></ul><ul><li>Co-op Development </li></ul><ul><li>Co-op Financing </li></ul><ul><li>Co-op Management </li></ul>
  3. 3. Co-operatives by Comparison <ul><li>Sole Proprietorship – Not incorporated, registered in name only, owner operated, owner is personally liable for the business </li></ul><ul><li>Partnership – Not incorporated, owned by two or more partners under a legal partnership agreement, registered in name only, partners are jointly and severally liable for the actions of the company </li></ul>Types of Formal Organizations Unincorporated
  4. 4. For Profit Corporations <ul><li>Private Corporation – Incorporated by one to 50 owners; shares privately traded; shareholders elect a board of directors; owners are not personally liable for the actions of the business </li></ul><ul><li>Public Corporation – Incorporated with more than 50 shareholders; shares are publicly traded on the stock market; shareholders elect a board of directors; owners are not personally liable for the actions of the business </li></ul>Co-operatives by Comparison Types of Formal Organizations
  5. 5. <ul><li>Not for Profit Society/Association – Incorporated or not – cannot distribute shares or profits to members; members elect a board of directors </li></ul><ul><li>Social Enterprise – A Not for Profit Society to generate revenues that are used to provide other services to members or the community </li></ul><ul><li>Charity – An Incorporated Not for Profit Society approved by Government of Canada to provide charitable tax receipts for fund raising </li></ul>Types of Formal Organizations Co-operatives by Comparison Not For Profit Organizations
  6. 6. <ul><li>Co-operative – Incorporated by members who own one share per member and who elect a board of directors from the members. Purpose is to serve the members, not to maximize profits for owners. “Profits”, or surpluses, are refunded or distributed to members according to patronage or usage in the co-op. </li></ul>Co-operatives by Comparison Types of Formal Organizations Co-operatives
  7. 7. <ul><li>Housing Co-op – to provide affordable housing that members control </li></ul><ul><li>Consumer Co-op – to increase buying power of members, e.g. groceries, gas, outdoor equipment, insurance </li></ul><ul><li>Producer Co-op – to market produce of the members; e.g. agriculture; artisan/Craft; professional </li></ul>Co-ops Serve Their Members Types of Co-ops
  8. 8. <ul><li>Credit Union - to serve members’ financial needs, savings and loans </li></ul><ul><li>Insurance Co-op - to serve the insurance needs of members </li></ul>Types of Formal Organizations Co-ops Serve Their Members
  9. 9. <ul><li>Worker Co-op – to provide employment and control over the workplace </li></ul>Co-ops Serve Their Members Types of Co-ops
  10. 10. <ul><li>Social/Health Care Co-op – to provide social or health care services for the members </li></ul><ul><li>Multi-stakeholder Co-op – any combination of member groups, e.g. health care providers and health care consumers </li></ul>Types of Co-ops Co-ops Serve Their Members
  11. 11. Co-ops Are Value Oriented <ul><li>Open and voluntary membership </li></ul><ul><li>Democratic member control </li></ul><ul><li>Member economic participation </li></ul><ul><li>Autonomy and independence </li></ul><ul><li>Education, training, information </li></ul><ul><li>Co-operation among co-operatives </li></ul><ul><li>Concern for community </li></ul><ul><li>Concern for environment </li></ul>Co-op Principles
  12. 12. <ul><li>Self-help </li></ul><ul><li>Self-responsibility </li></ul><ul><li>Democracy </li></ul><ul><li>Equality </li></ul><ul><li>Equitability </li></ul><ul><li>Solidarity </li></ul>Co-ops Are Value Oriented Co-op Values
  13. 13. <ul><li>A genetic code of ethics </li></ul><ul><li>A purpose other than profit making </li></ul><ul><li>A corporation of solidarity </li></ul><ul><li>Continuous learning </li></ul><ul><li>More than a customer, producer or worker – membership, belonging </li></ul><ul><li>Rooted in community </li></ul><ul><li>Self-responsibility </li></ul>Co-op Advantages
  14. 14. <ul><li>Building and maintaining shared vision </li></ul><ul><li>Conflict management </li></ul><ul><li>Balancing objectives – not just profit seeking </li></ul>Co-op Challenges
  15. 15. <ul><li>Pre-Feasibility Study </li></ul><ul><li>Feasibility/Viability Study </li></ul><ul><li>Group Development </li></ul><ul><li>Business Plan </li></ul><ul><li>Board Development </li></ul><ul><li>Bylaw and Policy Development </li></ul><ul><li>Incorporation </li></ul><ul><li>Start Up Financing </li></ul>Co-op Development Steps
  16. 16. <ul><li>Prairie HUB Development Grants </li></ul><ul><li>Canadian Worker Co-op Federation </li></ul><ul><li>CEDTAP (community economic development) </li></ul><ul><li>Canadian Social Economy Envelop </li></ul>Financing Co-op Development
  17. 17. <ul><li>Plan, execute, and evaluate business performance: </li></ul><ul><li>Strategy </li></ul><ul><li>Marketing </li></ul><ul><li>Operations </li></ul><ul><li>Human Resources </li></ul><ul><li>Finance </li></ul>Co-op Mangagement as a Business Enterprise
  18. 18. <ul><li>Co-op Members each have one share and one vote on policy issues. </li></ul><ul><li>Members elect a board of directors from their membership. </li></ul><ul><li>The board writes policies, hires staff, and oversees routine management of the co-op. </li></ul>Co-op Mangagement as a Business Enterprise
  19. 19. <ul><li>To discuss the possibility of starting a co-op, contact Randal Adcock at: </li></ul><ul><li>Phone (780) 993-2467 or </li></ul><ul><li>Email </li></ul>Randal Adcock Conclusion