Definition and Types of Cooperatives
– 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.
– Cooperatives can be categorized into different types based on their ownership and management structure, including consumer cooperatives, producer cooperatives, worker cooperatives, purchasing cooperatives, and multi-stakeholder cooperatives.
– Consumer cooperatives are businesses owned and managed by the people who consume their goods and/or services.
– Producer cooperatives are businesses where producers pool their output for their common benefit.
– Worker cooperatives are businesses owned and managed by the people who work there.
Global Reach and Impact of Cooperatives
– Approximately one billion people in 96 countries were members of at least one cooperative in 2012.
– The turnover of the largest 300 cooperatives in the world reached $2.2 trillion.
– Cooperatives are more economically resilient and have a higher survival rate compared to other business ownership models.
– The Mondragon Corporation, the largest worker-owned cooperative, has been in continuous operation since 1956.
– Retail cooperatives in the UK invest a higher proportion of their pre-tax profits in the communities compared to rival supermarkets.
Historical Origins of Cooperatives
– Cooperation has existed since ancient times, with tribes organizing as cooperative structures for mutual benefits.
– Pre-industrial Europe saw the emergence of the first cooperatives in an industrial context.
– Post-feudal forms of cooperation between workers and owners existed as early as 1795.
– The cooperative movement in the English-speaking world was influenced by a rejection of charity principles and a focus on mutuality and self-help.
– Key figures in the early cooperative movement include Robert Owen and the founders of the Rochdale Society of Equitable Pioneers.
Key Figures and Milestones in Cooperative History
– The Fenwick Weavers Society, formed in 1761, was one of the earliest cooperatives, providing discounted oatmeal to local workers.
– Robert Owen, a Welsh social reformer, introduced better labor standards and cooperative ideas at the New Lanark mill in Scotland.
– Rev. Henry Duncan founded the first established savings bank, a cooperative depository institution, in 1810.
– The Rochdale Society of Equitable Pioneers, founded in 1844, is considered the first successful cooperative enterprise and a model for modern cooperatives.
– Samuel Jurkovič founded the first cooperative in Europe, Spolok Gazdovský, in 1845, providing cheap loans and promoting a moral life.
Cooperative Movement and Social Impact
– Cooperatives frequently have social goals and invest a proportion of trading profits back into their communities.
– The cooperative movement played a role in the creation of organized labor and consumer movements.
– Friendly societies and cooperative forums were established to promote mutual support and democratic decision-making.
– Cooperatives can contribute to the well-being of people and society by providing affordable goods and services.
– The cooperative movement continues to grow and evolve, with initiatives like the Cooperative Marque and .coop domain to promote cooperative identity and recognition. Source: https://en.wikipedia.org/wiki/Cooperative
A cooperative (also known as co-operative, co-op, or coop) 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". Cooperatives are democratically controlled by their members, with each member having one vote in electing the board of directors. Cooperatives may include:
- businesses owned and managed by the people who consume their goods and/or services (a consumer cooperative)
- businesses where producers pool their output for their common benefit (a producer cooperative)
- businesses owned and managed by the people who work there (a worker cooperative)
- businesses where members pool their purchasing power (a purchasing cooperative)
- multi-stakeholder or hybrid cooperatives that share ownership between different stakeholder groups. For example, care cooperatives where ownership is shared between both care-givers and receivers. Stakeholders might also include non-profits or investors.
- second- and third-tier cooperatives whose members are other cooperatives
- platform cooperatives that use a cooperatively owned and governed website, mobile app or a protocol to facilitate the sale of goods and services.
Research published by the Worldwatch Institute found that in 2012 approximately one billion people in 96 countries had become members of at least one cooperative. The turnover of the largest three hundred cooperatives in the world reached $2.2 trillion.
Cooperative businesses are typically more productive and economically resilient than many other forms of enterprise, with twice the number of co-operatives (80%) surviving their first five years compared with other business ownership models (41%) according to data from United Kingdom. The largest worker owned cooperative in the world, the Mondragon Corporation (founded by Catholic priest José María Arizmendiarrieta), has been in continuous operation since 1956.
Cooperatives frequently have social goals, which they aim to accomplish by investing a proportion of trading profits back into their communities. As an example of this, in 2013, retail co-operatives in the UK invested 6.9% of their pre-tax profits in the communities in which they trade as compared with 2.4% for other rival supermarkets.
Since 2002, cooperatives have been distinguishable on the Internet through the use of a .coop domain. In 2014, the International Co-operative Alliance (ICA) introduced the Cooperative Marque, meaning ICA cooperatives and WOCCU credit unions can also be identified through a coop ethical consumerism label.
