Cooperative society is a membership-based association of people or organizations established to pursue common economic and social goals related to material or other needs of members who have shares in this fund, recognize the risks and results of the organization and participate in its functioning as a shareholder, controlling it democratically.
Use free sample research papers on cooperative society to learn that cooperative is an economic enterprise based on collaboration and mutual support of members of the cooperative. The cooperative society has a direct relations to the economic interests of its members. It is based on cooperative principles. The basic principle: one shareholder of the cooperative is one voice that is fundamentally different from the “power” of capital in the management of business entities.
Cooperative societies are also one of the types of associations, which, on the basis of a general meeting, form cooperative associations. Most often, this interpretation applies to country-building and agricultural cooperatives to form associations in order to better meet the needs of cooperative members. However, the association of cooperatives is most commonly formed by the municipal offices for the district in which this association may be formed.
The cooperative society by property/capital is regarded as the third sector of the economy, along with the private (individual) and national (centralized) sectors of the economy. In a market economy, cooperation acts as a “third force” or “third alternative” to the private and public production. Cooperation combines the economic activity and the social movement. Currently, there are about 700 million cooperators. International Cooperative Alliance includes 192 national cooperative Unions from the 76 countries.
The first cooperative enterprises were founded in the UK in the early 19th century, by rich businessmen philanthropists, seeking to improve the workers living conditions. But from 1820-1830’s, the workers themselves became the owners of cooperative stores, mills, bakeries, etc. Cooperatives enable the workers to buy goods at low prices.
In 1844, English weavers of Rochdale founded a consumer cooperative on the principles essential for cooperation.
These principles were:
- low mutual contributions;
- a limited number of shares for each shareholder;
- all are equal and each has one vote;
- sales of goods is carried out by moderate-market prices and only for cash;
- the price of the product is the same for all (including non-members).
In 1860-1880’s, UK and Germany cooperatives were so successful that they have to join in unions. In the same period, the cooperative system strengthened in Italy, France, Switzerland, Belgium and Nordic countries. In the 1890’s cooperation in Europe covering more than 2 million members.
Types of cooperatives can be productive (with compulsory labour members) consumer, which have not compulsory labour participation of members in the business activities of the cooperative.
Production cooperatives are commercial organizations, i.e., the main purpose of their activities, the same as any commercial organization: maximization of profits. Consumer cooperatives are non-profit organizations, that is, they are created to meet the material and other needs of their members and have no profit.
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