Cooperative Movement Draft
From digmovements
Erselle Stabler May.20.2008 Digitalizing Movements Research Paper
Cooperative principles are an ethical solution to creating a sustainable future
The cooperative movement is a very humane, sustainable, and realistic approach to doing business in today’s world. I intend in this paper to discuss the positive principles behind the cooperative movement. These principles are the backbone of a business structure that supports humanity to exist in a large and densely populated world, to transcend inequality, where there is enough supply and integrity for all (abundance). The main forms of cooperatives out there today are the consumers' cooperative, which is when people organize for wholesale or retail distribution and is often agricultural. The Producers’ cooperatives are manufacturing and distributive organizations that are owned and operated by the workers. There are also cooperatives of insurance, medical services, credit unions, housing, and other fields.
A cooperative is defined by the International Cooperative Alliance as a group of people who join together in a common undertaking, in accord with the seven revised principles as follows (ICA, 2008):
Cooperative Principles
1. Offer voluntary and open membership
2. Govern by democratic member participation (one member, one share, one vote),
3. Operate by equal and “fair” investment by the members,
4. Remain free of intervention from governments or any other outside power (for example, corporations),
5. Educate its members and the community about the nature, principles, values, and benefits of the cooperative,
6. Encourage cooperation among cooperatives,
7. Protect the environment and contribute to the sustainable development of the community.
In examining theses principles further, I intend to reveal why the cooperative movement is just and humane, and is suitable for a sustainable future. First I would like to reveal some history of the cooperative movement, such as how and why the cooperative came into existence. Then I will discuss the ethical principles that the cooperative movement is built upon and still thrives within today. Lastly I will provide a conclusion to reveal why the cooperative principles are an ethical solution to creating a sustainable future.
History
Rochdale, England 1844 where the first cooperative wholesale society formed and created the cooperative principles as a code of conduct. The first six of the principles above were the original principles from the Rochdale Cooperative, with the seventh added by the ICA to extend the cooperatives responsibility to the community. 100 years earlier a fire insurance cooperative, and a cheesemaker cooperative had formed, but without formal codes. The Rochdale group was unique in contracting the movement into formal principles binding the evolvement and formation of the cooperative. A group of 28 weavers came together after being laid off by local manufacturing companies, to establish a small cooperatively owned store, which sold weavers’ supplies, agricultural products and food. In the United States the cooperative movement began in the 19th century.
The Rochdale group “was established as a declared anti-capitalistic reaction against “class privileges and monopolies” (Chlopkova, pg. 242). Because cooperatives were forming out of disadvantageous market competition, their democratic cooperative position reinforced their weight in the game. And through such principles as above, we able to see the beliefs that the cooperatives intended to create, due to the lack of these beliefs in the concurrent market place.
1. Offer voluntary and open membership
Open membership is supported by the constitution of the United States of America, meaning the right of open membership to all regardless of race, class, gender, and other social stigmas. There are no pre-requisites of membership, no limitations on who is able to receive benefit from such consolidation of economic benefit, or group affiliation. Each member of the group will benefit from the economic and social impacts of joining the cooperative. Members will also have the chance to give back to their communities through participation, a benefit which may provide a level of compassion and nurture the individuals need to be a part something bigger.
2. Govern by democratic member participation (one member, one share, one vote)
A true cooperative evenly distributes shares of the company, and limits authoritative control. Men and women serving on the board are in equal power to make decisions; they help set policies, and make decisions. Third party members are sometimes involved when a network of cooperatives exists. In the cooperative model of capitalism “workers are also members. They hire the management. Laborers become people again in the cooperative model, and demand is again the driver. (pg. 78, the cooperative movement) “ This is as apposed to the standards model of capitalism where labor is the commodity. This principle gives people their voices and dignity that they too are human beings with value and worth. This is an ethical way of doing business, which validates and respects the human being.
3. Operate by equal and “fair” investment by the members According to the ICA, “Members contribute equitably to, and democratically control, the capital of their co-operative. At least part of that capital is usually the common property of the co-operative.” This allows the co-operative to hold half of all profits and go back into benefiting the members; this is where the democratic structure lies. Social capital, or trust, production and the efficacy of people working together is an ethical approach to believing in one another to be self-accountable, and build integrity.
4. Remain free of intervention from governments or any other outside power (for example, corporations)
Cooperatives are democratically motivated and run, therefore they do not ever intend on being governed by a single force, it would defeat the purpose of the cooperative.
5. Educate its members and the community about the nature, principles, values, and benefits of the cooperative
Education is seen at all levels in the cooperative, from training the employees, to managers, to the community. There are often cooking classes, environmental awareness classes, and resources for members within the community. This aspect of the cooperatives provides a sense of community involvement and participation that can also be seen in the 7th principle of community.
6. Encourage cooperation among cooperatives. This principle strenghens cooperatives by allowing cooperatives to come together for the benefit of the greater good. If each cooperative is beneficial and productive to its members, consumers, and providers of the product, then having groups of individual and yet linked cooperatives will increase cooperative businesses.
7. Protect the environment and contribute to the sustainable development of the community. Cooperatives are responsible to their community by means of sustainable development and protection of the environment in the communities they serve. Cooperatives are now found across the world, where are usually seen to benefit and enhance the communities of involvement, through economics, and human health.
Sustainable Future In order to achieve a sustainable future we each need to look at what our behaviors and choices are, and how these are impacting our futures. Finding a balance between economic, social, and ecological factors will help us reveal how to go forward by creating a sustainable outcome.
“Individual choices frequently are made from a shortterm, self-interested perspective, whereas cooperative choices are made from a long-term, community and resource-sustainability perspective.”(15)
“Three barriers to successful integration of structural and behavioral solutions are identified as self-interest, mistrust, and variable perceptions of resource amenities.” (15) Cooperative principles are excellent criteria to implement in the future of sustainable business policy. They provide groundwork for ethical creation of large businesses that work together with trust and democracy to empower the individual through the whole group by means of economic, social, and ecological sustainability.
Cooperative principles are excellent criteria to implement in the future of sustainable business policy. They provide groundwork for ethical creation of large businesses that work together with trust and democracy to empower the individual through the whole group by means of economic, social, and ecological sustainability.
