ORGANISATION . Meaning and Definition A cooperative is a form of business organisation which is owned and controlled by the people who use its products, supplies or services. Although cooperatives vary in type and membership size, all were formed to meet the specific objectives of members, and are structured to adapt to member’s changing needs. Cooperatives are formed by individuals who coordinate among themselves (horizontal coordination) to achieve vertical integration in their business activities.
In ,in England, 28weavers (Rochdale Pioneers) started the first ever Cooperative Society. commerce - - . . PM Definition Examples of a Cooperative Society: Cooperation is a form of organization in which persons voluntarily associate together as human beings on the basis of equality for the promotion of the economic interests of themselves.
- H.Calvert Cooperation is “better farming, better business and better living” - Sir Horace Plunkett (i) Indian Coffee House (ii) Mother Dairy (iii) Shri Mahila Griha Udyog Lijjat Papad (iv) Indian Farmers Fertilizers Cooperative Limited (v) The Indian Airlines (Cargo) C.G.H.S.Ltd. . Principles of Cooperation i. Voluntary and Open Membership Cooperatives are voluntary organizations, open to all people able to use its services and willing to accept the responsibilities of membership, without gender, social, racial, political or religious discrimination.
ii. Democratic Member Control Cooperatives are democratic organizations controlled by their members—those who buy the goods or use the services of the cooperative—who actively participate in setting policies and making decisions. iii. Member’s Economic Participation Members contribute equally to, and democratically control, the capital of the cooperative.
This benefits members in proportion to the business they conduct with the cooperative rather than on the capital invested. iv. Autonomy and Independence Cooperatives are autonomous, self-help organizations controlled by their members. If the co-operative organisation enters into agreements with other organizations or raises capital from external sources, it is done so based on terms that ensure democratic control by the members and maintains the cooperative’s autonomy.
v. Education, Training, and Information Cooperatives provide education and training for members, elected representatives, managers and employees so they can contribute effectively to the development of their cooperative. Members