Question: What Is a Cooperative? Mention the Seven Principles of Cooperatives.
1. Meaning of a Cooperative
A cooperative is an autonomous and member-centred organisation established on the principle of “One for All and All for One.” It aims to empower its members economically and socially while contributing to the transformation of society.
A cooperative is a member-owned business formed voluntarily by a group of people to meet their common economic, social and cultural needs and aspirations. Its ownership is shared among its members, and it is democratically controlled on the basis of “One Member, One Vote.”
Cooperatives are managed and operated by their members in accordance with established cooperative values and principles. Self-regulation and self-responsibility are considered fundamental values of cooperatives. The government also establishes a separate legal and regulatory framework to regulate cooperative institutions.
2. Seven Principles of Cooperatives
The International Cooperative Alliance (ICA) has established the following seven principles to guide the operation, management and participation of members in cooperative institutions:
Voluntary and Open Membership: Cooperatives are voluntary organisations open to all people who are willing to accept the responsibilities of membership without discrimination.
Democratic Member Control: Cooperatives are democratically controlled by their members, who actively participate in policymaking and decision-making. Each member generally has one vote.
Member Economic Participation: Members contribute equitably to, and democratically control, the capital of their cooperative. They also share in its economic benefits according to cooperative principles.
Autonomy and Independence: Cooperatives are autonomous, self-help organisations controlled by their members. Any agreements with external organisations or governments should preserve their democratic control and autonomy.
Education, Training and Information: Cooperatives provide education and training to their members, elected representatives, managers and employees. They also inform the public, particularly young people and opinion leaders, about the nature and benefits of cooperation.
Cooperation Among Cooperatives: Cooperatives serve their members more effectively and strengthen the cooperative movement by working together through local, national, regional and international structures.
Concern for Community: Cooperatives work for the sustainable development of their communities through policies and activities approved by their members.
Conclusion
The seven cooperative principles provide a foundation for democratic governance, self-reliance and accountability towards members and society. Their effective implementation, together with compliance with government regulations, can make a significant contribution to the sustainable economic and social development of cooperative members and the wider community.
Cooperatives, Cooperative Principles, International Cooperative Alliance, Loksewa Preparation, Public Administration