INTRODUCTION

TO
COOPERATIVES
Presented by Group 1
 The History and
Philosophy of
Cooperative

The history of cooperatives

dates back to the early 19th
century
-Emerged in Europe during a period of
significant social and economic change
after the Industrial Revolution
 Spread of Cooperatives (Late
The Modern Cooperative
19th and Early 20th
Movement Begins (1844)
centuries)
Cooperatives expanded
-The Rochdale Society of
across various sectors:
Equitable Pioneers was
• Agriculture
established in England.
• Banking
-28 artisans opened a shop • Housing
selling basic goods at fair prices.
Laid the groundwork for
cooperative principles:
• Voluntary membership
• Democratic control
• Distribution of profits based
on usage
 Global Recognition and Adaptation (20th century
onwards)
-The cooperative model gained global
recognition
-International organizations, such as the
International Cooperative Alliance (ICA), were
established
Cooperatives adapted to changing economic
landscapes:

New forms emerged, such as worker

cooperatives and credit unions
 PHILOSOPHY OF COOPERATIVES
Core Values of Cooperatives

1.Self-Help - Members work together

4. Equality - All members are treated
to achieve common goals
equally within the cooperative
2. Self-Responsibility - Each member
takes responsibility for their actions 5. Equity - Fair treatment and
and contributions consideration of all members’ needs

3. Democracy - Emphasis on 6. Solidarity - Support and

democratic control - Equal vote for collaboration among members and
every member regardless of the community
investment
 Social and Environm ental
Responsibility
Principles of Mutual
Benefi t - Commitment to sustainable
practices
- Support for local economies
- Members contribute to the - Balance between economic
cooperative viability and ethical goals
- Sharing of rewards based on
contributions
- Fostering a sense of
community and belonging
 Principles of Cooperatives
Introduction

The International Cooperative Alliance (ICA) is a global

organization that represents cooperatives worldwide. In
1995, the ICA adopted the Statement on the Cooperative
Identity, which defines the principles and values that
guide cooperative enterprises. This report outlines the
seven principles of cooperatives as stated by the ICA.
The 7 Cooperative
Principles
1. Voluntary and Open
Membership
2. Democratic Member
Cooperatives are voluntary
Control
organizations, open to all Cooperatives are democratic
individuals who are willing to organizations controlled by their
accept the responsibilities of members, who actively participate
membership. This principle in decision-making processes.
ensures that membership is Members have equal voting rights,
inclusive and accessible to and decisions are made in the best
everyone who needs the interest of the cooperative and its
cooperative's services. members.
 3. Member Economic
Participation
Members contribute equitably to
the capital of the cooperative and
share in its benefits. This
principle ensures that members
have a financial stake in the
cooperative and are motivated to
contribute to its success.
4. Autonomy and
Independence
Cooperatives are autonomous,
self-help organizations controlled
by their members. They operate
independently from external
influences and make decisions
based on their members' needs.
5. Education, Training, and Information

Cooperatives provide education, training,

and information to their members,
elected representatives, managers, and
employees. This principle ensures that
members and staff have the knowledge
and skills necessary to contribute to the
cooperative's success.
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. This principle
ensures that cooperatives
contribute to the social and
economic well-being of their
communities.
 Diff erent types of Cooperatives
1.Credit cooperatives, also 2.Consumer cooperatives, also
known as credit unions, are known as co-ops, are
member-owned financial businesses owned and
institutions that offer controlled by their members,
financial services to their who are also their customers.
members, focusing on These cooperatives operate
meeting their financial on the principle of "members
needs, promoting financial helping themselves," with a
inclusion, thrift, and focus on providing goods and
community development. services at affordable prices
while promoting member
3. A service cooperative is a
member-owned organization
4. A multi-purpose cooperative
where individuals join together
is a cooperative that provides
to provide services to
a variety of services or
themselves or their
products to meet the diverse
communities. The aim is to
needs of its members, offering
deliver these services more
more versatility compared to
cost-effectively, efficiently, or
specialized cooperatives.
personally than members
could individually, sharing
both the benefits and
responsibilities.
 5. An advocacy cooperative is a
cooperative focused on promoting
and advocating for its members'
interests or a specific cause, aiming
to influence policy, raise awareness,
or support social, political, or
environmental issues.

6. An agrarian reform cooperative

supports farmers, especially in areas
needing land reform or agricultural
development, by improving access to
land, resources, credit, technology, and
markets to enhance their livelihoods.
 8. An electric cooperative
is a member-owned
organization that provides
7. An education cooperative is
affordable, reliable
a member-owned organization
that provides educational
electricity to rural or
services and resources, underserved areas,
formed and democratically operating democratically
run by teachers, parents, to meet community needs.
students, or community
members to achieve shared
 9. A fishermen cooperative is a
member-owned organization that
helps fishermen manage resources,
improve their livelihoods, and
ensure fair prices by pooling efforts
in fishing, marketing, processing,
and distribution.
10. A health service cooperative is
a member-owned organization that
offers affordable, accessible, and
high-quality healthcare services,
formed by groups aiming to
collectively manage resources and
improve health outcomes.
11. An insurance cooperative is a
member-owned organization
where members pool resources to
share financial risks, providing
affordable insurance with a focus
on mutual aid rather than profit.
12. A transport cooperative is a
member-owned organization that
offers affordable transportation
services, managed and operated
by individuals, small businesses,
or drivers working together.
 13. Producers cooperatives are
groups of individuals or legal
entities that pool resources to
enhance economic efficiency
and market power, often formed
by farmers, artisans, or service
providers.
14. A marketing cooperative is a group
of independent businesses or
organizations that pool resources for
effective marketing, aiming to increase
visibility, reduce costs, and improve
reach. Members share common
industries, target markets, and regions,
leveraging collective buying power.
15. A cooperative bank is a
16. Consumer cooperatives,
member-owned financial also known as co-ops, are
institution that operates businesses owned and
democratically, giving each controlled by their members,
member an equal say. It who are also their customers.
These cooperatives operate
focuses on providing
on the principle of "members
financial services to its helping themselves," with a
members while promoting focus on providing goods and
community development services at affordable prices
and mutual aid, rather than while promoting member
prioritizing profit. benefits and community well-
being.
 18. Financial services
17. A dairy cooperative is a cooperative involve
farmer-owned organization managing money for
that processes, markets, individuals, businesses,
and distributes dairy and governments,
products to enhance provided by institutions
members' income, reduce like banks, insurers, and
costs, and ensure fair investment firms,
prices. covering banking,
investing, insurance,
lending, and wealth
 19. A housing cooperative is a member-
owned organization where members own
shares, not individual units, and
collectively manage residential properties,
making decisions on management,
maintenance, and rules.

20. A water service cooperative is a

member-owned organization that provides
affordable, reliable water supply and
distribution, often in rural or underserved
areas, while focusing on sustainable
resource management.
ROLE OF COOPERATIVES IN ECONOMIC AND
SOCIAL DEVELOPMENT

Cooperatives help in economic and social

growth by creating jobs, improving
incomes, and supporting fair resource
sharing.
THANK
YOU!