DEFINITION: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
WHAT IS A CO-OPERATIVE?
A co-operative is a group of people acting together to meet
the common needs and aspirations of its members, sharing
ownership and making decisions democratically.
Co-operatives are not about making big profits for
shareholders, but creating value for customers – this is
what gives co-operatives a unique character, and
influences our values and principles.
VALUES OF CO-OPERATIVE:Co-operatives are based on the values of self-help, selfresponsibility, 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.
ROLE OF CO-OPERATIVES
CO-OPERATIVE offers different types of benefits which
are as follows:Economics benefits:• In co-operation , there is no problem of exploitation
with the result that the profit which is earned by the
people is kept by themselves. It is not shared by
• Since in a co-operative , all share profit and all are keen
to make the organization a success , there is equitable
distribution of wealth. This bridges the gap between
the rich and the poor people which is of considerable
advantages to the society as a whole.
• In a co-operative organization only , those goods
are produced and sold which are needed by the
society very urgently and on top priority basis. In
this way, the organization helps in meeting urgent
goods of consumer and produce needs . Thus
,there is relationship between goods produced
• Since demands in the society always go on
increasing and continue , the result is that those
who once get employment continue these. In this
way there is stability in the employment market.
• In the rural areas co-operative organization
helps in providing loans ,manures, seeds to
the farmers on the one hand and purchase
their produce at reasonable rates on the
other. The result is that many of the problems
of rural poor are solved or reduced.
• co-operative credit society which provide
loans to farmers or rural people help relieving
them from the clutches of the landlords and
Educational benefits:• The basic values of life like co –operative
, fairness, toleration, condemnation of anti-social activities
and courage to face every social evil boldly, are taught in a
• In a co-operative organization , people are educated about
human values in life and made to appreciate that beyond
money ,there is something more important and that is
human spirit ,human feelings and man in the human
• All over the world , education about running the
administration of people on democratic lines, in a
democratic manner is imparted in a co-operative system. If
there is no education through co-operative, perhaps
running economic and political system will become very
Political benefits:• Co-operation is educating the people in selfgovernment as the running of the cooperative institutions gives them sufficient
training in running democratic institutions.
• It is encouraging local leadership to take up
and shoulder important task of rebuilding new
• Co-operative institutions are helping to
produce better citizen who are honest and
prepared to make sacrifies.
• A co-operative society teaches respect for
• It seeks to develop responsibility in all the
• To make economic planning and development,
the government has taken co-operatives as
media to reach the village people. Each person
now is participating for economic
Social benefits:• It is teaching the people to live harmoniously on a
community basis. It also teaches the people the
lesson of unity, brotherhood and corporate
• As co-operation relies on the character of the
member, it foster a sense of responsibility ,
integrity and diligence.
• Co-operative are helping to lessen the social
tension existing in the society.
• The co-operative movement is bringing about
socio-economic changes in the society without
resorting to undesirable methods and violence.
ROLE OF CO-OPERATIVE IN SOCIAL
• Cooperatives and poverty reduction:Cooperatives, as self-help organizations, contribute to the
eradication of poverty through the economic and social progress of
their members and employees and by stimulating the economies
and enhancing the social fabric of the communities in which they
• Cooperatives and social integration:Cooperatives promote social integration and cohesion in the face of
inequalities in social capabilities by empowering and giving voice to
the poor as well as marginalized groups and by promoting the
organization of federations and alliances.
In addition, cooperatives play an important role in an increasingly
global economy as well as in fostering peace building among
peoples,communities and nations.
• Co-operatives and globalization.
Co-operatives work towards fair globalization - one that
is fundamentally inclusive, sustainable and peoplecentred – by creating business entities that promote
solidarity among peoples, greater accountability,
deeper partnerships and fairer rules and standards that
offers equitable opportunities for all.
• Co-operatives and employment generation.
Co-operatives help to create, improve and protect the
income and employment opportunities of their
members by pooling the limited individual resources of
members to create business enterprises that enable
them to participate in production, profit-sharing, costsaving or risk-taking activities.
Spirit of mutual help
Spirit of service
Appreciation of other problems
No advantages from needs of others
Important role of rationality
ROLE OF CO-OPERATIVE IN
• Co-operative makes possible to organise resources on the
basis of mutual help and for sharing benefits by avoiding any
kind of exploitation. There is always emphasis on equitable
distribution of wealth. Co-operative in underdeveloped
nations bring together people of small means to reap the
benefits for themselves and harmonize their aims with those
of the society. Thus co-operative do away with the
exploitation of the imperfect market.
• For people with small means in backward countries this is the
only self-respecting methods to increase their resources and
to have a special place for themselves in this competitive
world. By pooling their maximum resources ,co-operative
members can undertake big production activities and realise
advantages. When these resources are used together they
result in greater gain than individual efforts
• Co-operative can extend great help in running small
scale and cottage industries. Though the working of
cottage industries is totally different, some of its aspect
can be usefully applied in the same direction. For e.g.
purchase of raw materials ,marketing of finished goods
can be undertaken on co-operative basis.
• Co-operative institutions help to promote planned
economics growth of a country. the flow of credit into
agricultural credit through co-operative sector
indicates the increase of resources to agricultural
• India lives in villages. Indian economy is specifically agroeconomy and co-operative play a significant role in india.
Agriculture is am occupation , where large number of
agricultural workers are scattered over a large area. As against
this non-agricultural business is always concentrated in a
limited space. Many people come to work and go back home
after the work is over. In india, agricultural is also not looked
as a business but as a way of life. Indian farmers are small and
poor . They are short of finance , capital and know-how.
Therefore , they conduct their business in a primitive manner.
Due to defective institutional arrangement they cannot
improve agriculture. In the light of these defect , the adoption
of co-operative is very much essential and it is a peaceful
methods to overcome the drawbacks of agriculture in india.
• In a capitalist economy, class-conflict becomes the ingredient
of that system , while in co-operative system is based on
eliminating the cut-throat competition and monopoly.
• Under c-operatives ,workers ,investors ,savers
get together , decide the problems and work
together according to decisions jointly taken.
Thus , co-operatives play a dynamic role in
economic growth of an underdeveloped
country like india and it also promotes social
welfare. It is an organisation, where human
values are considered more important than