What you probably did not know about
CO-OPERATIVES
Contents
Definition of a co-operative
Values of a co-operative entity
Where it all began
Co-operative principles and practices
The co-operative symbol
Test your knowledge
What Is A Co-operative?
A co-operative is a self-governing association of persons united voluntarily to
meet their common economic, social and cultural needs and aspirations through
a jointly owned and democratically controlled enterprise.
What Are The Values Of A Co-operative Entity
Co-operatives are based on the values of self-help, self-responsibility,
democracy, equality, equity and solidarity. In the tradition of their founders, cooperative members believe in the ethical values of honesty, openness, social
responsibility and caring for others.
Where It All Began
The first co-operative was established on Toad Lane and was legally registered
as the Rochdale Equitable Pioneers on October 24,1844. This has important
fact has resulted in the worldwide celebration of National Co-operative Month in
October. The store opened for business on Saturday evening, December 21,
1844, the longest night of the year. After a full year in operation, the store had
74 member households, raised 181 pounds in capital, registered 710 pounds in
sales and netted 22 pounds in savings. The average wage was a pound per
week.
From the Toad Lane store sprang inspiration for the establishment of similar cooperatives. Soon, throughout England and then the world, branch stores,
reading rooms, department stores, tailoring shops and other cooperative
enterprises were established. In 1844, 28 people began the Rochdale Co-op.
Today, in the Jamaica, there are over 750,000 co-operative members and
throughout the world over 800 million members.
Co-operative Principles and Practices
Today, all co-operatives operate on the basis of a set up principles known as the
Rochdale Principles.
The first principle is OPEN MEMBERSHIP
This principle is what makes co-operatives different from other institutions. At
the time when co-operatives were first being established, almost every form of
organization at the time was created to discriminate and to ensure that its
benefits went to its customers who were of the same class, gender, Masonic
order or religion. The co-operative allowed for everyone to join and for the
newest member to pay the same to enter as the oldest member. Today, cooperatives are still governed by this principle.
Credit Unions are financial co-operatives and membership is based on the
concept of common bond. Members of every credit union share something in
common, whether it is area of residence, profession or place of employment.
This concept of ‘common bond’ does not mean that credit union membership
excludes any one. There is at least one credit union in Jamaica that any
member of the Jamaican society can join.
The second principle is DEMOCRATIC MEMBER CONTROL
This principle dictates that within any co-operative society, one man is entitled to
only one vote. This principle was tabled in 1845 and the Pioneers of the cooperative movement (Rochdale Pioneers) were interested in democracy,
especially through their involvement with Chartism, a popular movement in that
time which fought for the concept of one man one vote. The co-operative, one of
the first organizations to allow women to own property, went one step further and
made it clear that there would be equality of opportunity for men and women to
own shares in the store. However, they still spoke of one man, one vote. In this
context, the word ‘man’ included both men and women.
This principle is practiced today in Jamaica’s credit unions. A member of any
credit union has the right to attend the credit union’s annual general meeting to
vote on issues regarding the management and operation of that credit union.
The third principle is ECONOMIC PARTICIPATION
This principle stipulates that members can decide on the use of the surplus of the
co-operative. This principle was said to have been developed by Charles
Howarth. Howarth, the Thomas Jefferson of the Pioneers, was looking for a way
to reward loyalty and pay back the majority of profits to the members of co-
operatives. The term ‘dividend' became the hallmark of the British co-operative
movement and was copied all over the world. What the co-operative needs is the
patronage of its members and rewarding members with dividends is one way to
secure their patronage.
In credit unions, members vote at the annual general meeting on how to deal
with the surplus earned by that credit union. Management and directors of credit
unions cannot act without the vote of the members.
The fourth principle is INDEPENDENCE
This principle stipulates that if a co-operative enters into agreements with other
institutions or raise capital from external sources, the co-operative must ensure
that they do so on terms that ensure their continued democratic control by
members. Therefore, members must always be the only shareholders in a cooperative, no other organization can be a shareholder in a co-operative.
The fifth principle is EDUCATION AND TRAINING
All co-operatives should make provision for the education of their members,
officers, and employees and of the general public in the principles and
techniques of the co-operation so that they can contribute effectively to the
development of their co-operatives.
Credit unions often have educational workshops which target credit union
members and staff. These workshops are designed to educate all parties
involved on the fundamentals of credit union operations.
The sixth principle is CO-OPERATION AMONG CO-OPERATIVES
All co-operative organizations, in order to best serve the interest of their
members and their communities, should actively co-operate in every practical
way with other cooperative at local, national and international levels. Today,
many co-operatives trade with or work in partnerships with other co-operatives
through local networks.
The seventh principle is COMMUNITY INVOLVEMENT
While the primary focus of any co-operative is its members, many maintain a role
in their community through policies chosen by members. Many credit unions in
Jamaica participate in community enrichment projects and youth involvement
activities.
Do You Know What This Is?
This is a familiar symbol of the co-operative movement. The symbol is called the
encircled Twin Pines. The Co-operative League of the USA adopted the symbol
in 1922, as the National Co-operative Business Association was then known, as
a universal co-operative emblem.
The co-operative emblem displays the Twin Pines encircled because the pine
tree is an ancient symbol of life and the circle has the endless quality of
eternity. Two pines are shown to emphasize the mutual nature of co-operation.
The trees and the circle are dark green, which is the color of chlorophyll, the life
principle in nature. The color within the circle is golden yellow, typifying the sun,
the giver of light and life.
Over the years, the emblem has been used widely around the world to display a
positive identification among co-operators and a sense of common purpose. The
National Co-operative Business Association has taken the position that the
emblem's proper use by bona fide co-operatives should be unrestricted. For
millions of people around the world the Twin Pines has come to mean one thing:
CO-OPERATION.
Information was taken from the following sites:
http://www.citymarket.coop/orc/about/general_history.html
http://cooperativegrocer.coop/articles/index.php?id=158
Test Your Knowledge!
1. What is a co-operative?
A co-operative is a self-governing association of persons united voluntarily to meet
their common economic, social and cultural needs and aspirations through a jointly
owned and democratically controlled enterprise.
2. When was the first co-operative legally registered?
October 24,1844
3. Approximately how many co-operative members are here in Jamaica?
Approximately 750,000
4. Which one of the co-operative principles speaks to the issue of nondiscrimination?
The first principle, the principle of open membership
5. What does the concept of ‘common bond’ means?
Members of every credit union share something in common, whether it is area of
residence, profession or place of employment
6. If a credit union helps a church in its community to paint its walls, which
one of the co-operative principles would the credit union be fulfilling?
The seventh principle, Community Involvement
7.Which of the co-operative principles did Charles Howarth develop?
The third principle, Economic Participation
8. What do the pine trees in the co-operative emblem symbolize?
The twin pines are an ancient symbol of life
9. What does the term ‘Chartism’ represents?
It represents a popular movement which fought for the concept of one man
one vote
10. Name any two of the values co-operatives are based on?
Co-operatives are based on the values of self-help, self-responsibility, democracy,
equality, equity and solidarity