2. A COOPERATIVE (ALSO KNOWN AS CO-
OPERATIVE, CO-OP, OR COOP)
"an autonomous association of persons united voluntarily to meet their common economic, social, and
cultural needs and aspirations through a jointly-owned enterprise".
1)consumer cooperative: businesses owned and managed by the people who use their services
2) worker cooperatives: organizations managed by the people who work there
3) Supply & Purchasing cooperative: Important in Ag
4)Marketing Coooerative: Important in Ag
5)Credit Unions
3. CO-OP PRINCIPLES AND VALUES
MANY COOPERATIVES FOLLOW THE
PRINCIPLES
• Voluntary and open membership
• Democratic member control, with each member having one vote.
• Economic participation by members
• Autonomy and independence
• Education, training and information
• Cooperation among cooperatives
• Concern for community
4. ORIGIN & HISTORY
• Cooperation dates back as far as human beings have been organizing for mutual
benefits.
• Tribes were organized as cooperative structures, allocating jobs and resources
among each other, only trading with the external communities.
• The Rochdale Society of Equitable Pioneers, (RCEP) founded in 1844, is usually
considered the first successful cooperative enterprise, used as a model for
modern coops, following the 'Rochdale Principles'.
5. THE ROCHDALE
PRINCIPLES
ORIGINAL VERSION (ADOPTED 1937)
• Open membership.
• Democratic control (one person, one vote).
• Distribution of surplus in proportion to trade.
• Payment of limited interest on capital.
• Political and religious neutrality.
• Cash trading (no credit extended).
• Promotion of education.
6. THE ROCHDALE PRINCIPLES
• Voluntary and open membership: states that co-operative societies must have an open
and voluntary membership
• Democratic member control: states that co-operative societies must have democratic member
control.
• Member economic participation: Member economic participation is one of the defining features of
co-operative societies, and constitutes the third Rochdale Principle
• Autonomy and independence: states that co-operative societies must be autonomous and
independent.
• Education, training, and information: states that co-operative societies must provide education and
training to their members and the public.
• Cooperation among cooperatives:The sixth of the Rochdale Principles states that co-operatives
cooperate with each other.
• Concern for community: The seventh of the Rochdale Principles states that co-operative societies
must have concern for their communities.
7. INTERNATIONAL CO-OPERATIVE ALLIANCE ICA
• The International Co-operative Alliance was the first international association
formed (1895) by the cooperative movement.
• It includes the World Council of Credit Unions.
• The International Cooperative Alliance was founded in London, England on 19
August 1895 during the 1st Cooperative Congress.
8. ICA REVISION (1966)
• Open, voluntary membership.
• Democratic governance.
• Limited return on equity.
• Surplus belongs to members.
• Education of members and public in cooperative principles.
• Cooperation between cooperatives.
9. STAUS
• In 2012 approximately one billion people in 96 countries had become members
of at least one cooperative.(Research published by the Worldwatch Institute )
• The turnover of the largest three hundred cooperatives in the world reached
$2.2 trillion.