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About Cooperatives The founders of the Rochdale Equitable Pioneers Society established operating principles in 1844 which continue to govern cooperatives today.

What is a co-op, the different types of cooperatives, the history of the cooperative movement, and the cooperative principles.

What is a Cooperative?

Quite simply, a Co-op is an organization owned by and operated for the benefit of those who use its services. Members of a cooperative support it with their patronage, participate in decision-making, and share in the profits generated by the organizationÕs activities. Cooperatives 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. About home => About Cooperatives

Different Types of Cooperatives

Cooperatives are often formed to provide their members with goods and services or economic benefits not provided by the marketplace. Thus, co-ops operate a wide variety of businesses. All are owned and run by the people they serve. Here are a few examples: Consumer Co-ops like the Hanover Consumer Cooperative Society may operate food stores, pharmacies, clothing and sporting goods outlets, bookstores, service stations, hardware and agricultural supply stores, and other retail businesses. Rural Utility Co-ops have played an important role in serving the needs of rural Americans. Electric co-ops have brought power to over 80 percent of the land area of the United States, and provide water and sewer services to many rural areas. Telephone cooperatives have brought new communication technologies to many people. Credit Unions provide banking and credit services to over 71 million members in the United States. Housing Co-ops are home to students, seniors, city dwellers, mobile home park residents, minorities, the handicapped, single parents, and others. Some for whom home-ownership would be out of reach find it possible through a housing cooperative. Agricultural Co-ops offer individual farmers greater clout in the marketplace by acting as their buying and selling agents. Agricultural supply co-ops allow farmers to purchase supplies at competitive prices, while agricultural marketing co-ops market farm crops and manufacture value-added products. They include such well-known names as Cabot, Sunkist, Ocean Spray, Land O’Lakes, and Blue Diamond. Worker Co-ops are owned and controlled by their employees. Worker cooperatives may be found in almost any industry, from restaurants and bakeries to printers and taxicab companies. "In cooperatives, men and women have in their hands the tools to fashion their own destiny." Murray D Lincoln About home => About Cooperatives

The History of the Cooperative Movement The first successful cooperatively owned business opened in 1844 in this building on Toad Lane in Rochdale, England.

Today’s cooperatives trace their origins to England’s Industrial Revolution. In the first half of the nineteenth century, living conditions were extremely harsh for working class people in the textile milling towns of northern England. Mill workers labored long hours under dangerous working conditions for low pay. Plagued by unending poverty, they were forced to buy food on credit from merchants who charged high prices for goods that were poor quality and often adulterated. Owning no property, workers were unable to vote. These conditions gave rise to labor movements which drew great numbers of followers. During this period, cooperative initiatives were common, offering their working class members the promise of economic opportunity and democratic control. But until the founding of the Rochdale Equitable Pioneers Society in 1844, none were successful. When the self-described "Rochdale Pioneers" opened their first cooperative food shop, they sold only five products – butter, flour, oatmeal, sugar, and candles – but promised to provide members with "purest provisions, giving full weight and measure." They went on to establish many other member-owned businesses. Learning from earlier failures, the founders of the Rochdale society developed a series of operating principles which ensured their success and the success of hundreds of cooperatives in England and beyond which soon imitated them. Today, these basic principles still guide cooperatives around the world. About home => About Cooperatives

The Cooperative Principles

Statement of Cooperative Identity The International Cooperative Alliance, established in 1895, is considered to be the final authority for defining cooperatives and the principles by which they operate. The organization has made three formal statements of cooperative principles over the past 100 years in an effort to keep them relevant to the contemporary world. At its 100th anniversary meeting in September, 1995 in Manchester, England, the Alliance adopted the following "Statement of Cooperative Identity." Definition A cooperative is an autonomous association of persons united voluntarily to meet their common economic, social and cultural needs and aspirations through a jointly-owned and democratically controlled enterprise. Values Cooperatives 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. Principles The cooperative principles are guidelines by which cooperatives put their values into practice. 1. Voluntary and Open Membership Cooperatives are voluntary organizations, open to all persons able to use their services and willing to accept the responsibilities of membership, without gender, social, racial, political, or religious discrimination. 2. Democratic Member Control Cooperatives are democratic organizations controlled by their members, who actively participate in setting their policies and making decisions. Men and women serving as elected representatives are accountable to the membership. In primary cooperatives members have equal voting rights (one member, one vote), and cooperatives at other levels are also organized in a democratic manner. 3. Member Economic Participation Members contribute equitably to, and democratically control, the capital of their cooperative. At least part of that capital is usually the common property of the cooperative. Members usually receive limited compensation, if any, on capital subscribed as a condition of membership. Members allocate surpluses for any of the following purposes: developing their cooperative, possibly by setting up reserves, part of which at least would be indivisible; benefiting members in proportion to their transactions with the cooperative; and supporting other activities approved by the membership. 4. Autonomy and Independence Cooperatives are autonomous, self-help organizations controlled by their members. If they enter into agreements with other organizations, including governments, or raise capital from external sources, they do so on terms that ensure democratic control by their members and maintain their cooperative autonomy. 5. Education, Training and Information Cooperatives provide education and training for their members, elected representatives, managers, and employees so they can contribute effectively to the development of their cooperatives. They inform the general public - particularly young people and opinion leaders - about the nature and benefits of cooperation. 6. Cooperation Among Cooperatives Cooperatives serve their members most effectively and strengthen the cooperative movement by working together through local, national, regional, and international structures. 7. Concern for Community Cooperatives work for the sustainable development of their communities, through policies approved by their members. About home => About Cooperatives