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Co-ops 101: An Introduction to Cooperatives Published by the USDA,
Rural Development, this report provides a comprehensive summary of basic
information on the cooperative way of organizing and operating a business.
It covers the nature and extent of the use of cooperatives, compares
cooperatives to other business structures, explains the roles various
people play in a cooperative, and discusses equity accumulation and income
taxation. The purpose is to make available, in a single report, the
information someone would need to acquire a general understanding of how
cooperatives function.
National Rural Electric Cooperative Association is the national
service organization dedicated to representing the national interests of
cooperative electric utilities and the consumers they serve. See
especially their sections titled
Co-op 101and
Electric Consumer Bill of Rights.
The International Co-operative Alliance is the independent,
non-governmental association that unites, represents and serves
co-operatives worldwide. Founded in 1895, the ICA has 230 member
organisations from 92 countries active in all sectors of the economy.
Together these co-operatives represent more than 800 million people
worldwide.
The History and Development of
Cooperative Principles
The Rochdale Principles:
The first set of rules commonly identified as cooperative principles
was a combination of true principles and desirable business practices.
Developed by a consumers' cooperative of flannel weavers in England in
1844, these rules, though outdated in many respects, are still
considered the first expression of modern cooperative principles. This
group of weavers is commonly referred to as the Rochdale Pioneers.
- The store is open to all.
- The store charges ordinary market prices.
- The store receives only ready money and gives no credit.
- The store gives dividends in proportion to purchases.
- Every member must have a share or shares and receive good interest
on them.
- All are equal in voting power, whether they have few or many
shares.
- The store sells genuine articles that are what they profess to be.
- The store has an honest manager and an active committee (board of
directors).
The Grange Principles:
In 1876 the Grange developed a statement of cooperative principles in
response to a misunderstanding of what the cooperative could and could
not do for its farmer-members.
- One member, one vote.
Limitation of interest on invested capital.
Payment of dividends on patronage.
Cash trading.
Neither fear or court competition.
Modern Farmer Cooperatives Recognize the Following Four
Principles:
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Service at cost. A cooperative provides services to its members at
the lowest possible cost. This does not mean every transaction is
conducted at cost. Cooperatives, like any other business, must
generate sufficient income to cover operating expenses and meet
continuing capital needs. This principle means earnings belong to the
member/user and not the business.
Ownership benefits and financial responsibility in proportion to
use. The more you use a cooperative, the more you benefit. You receive
more services, and earnings are returned on the basis of use, not
investment. As benefits follow use, so does the obligation to provide
adequate resources so that benefits continue. Per-unit retains, annual
membership dues, base capital plans, and retained patronage refunds
are tools to implement the user-financier objective.
Limited return on equity capital. The main value of a cooperative
to its members is the services it provides. Limiting the return on
invested capital complements the service orientation of the business
and assures that margins are distributed on the basis of use.
Democratic control. Member-users control the cooperative. Most
cooperatives follow a concept of one-member, one-vote. Limited
proportional voting, based on use, is also acceptable.
The 1966 Cooperative Guiding Principles:
In 1966 an official text of the principles adopted by the
International Cooperative Alliance was published, with the addition of
principles 5 and 6. Principles 5 and 6 were not really new. They were
ideas found in the original principles, but not specifically
highlighted. In 1966, principles 5 and 6 were specifically added to
highlight principles and practices already in place.
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Open, voluntary membership. Cooperative organizations seek to
build a world of justice and peace based on the enterprise of
self-governing individuals, families, communities, peoples and
regions. These principles provide a guide for such an enterprise.
Democratic control. Cooperative societies are democratic
organizations. Their affairs should be administered by persons elected
or appointed in a manner agreed to by the members and accountable to
them. Members of primary societies should enjoy equal rights of voting
(one-member, one-vote) and participation in decisions affecting their
societies. In other than primary societies the administration should
be conducted on a democratic basis in a suitable form.
Limited return, if any, on equity capital. Share capital should
only receive a strictly limited rate of interest.
New surplus belongs to user-owners. The economic results arising
out of the operations of a society belong to the members of that
society and should be distributed in such a manner as would avoid one
member gaining at the expense of others. This may be done by decision
of the members as follows: (a) by provision for development of the
business of the cooperative; (b) by provision of common services; or
(c) by distribution among the members in proportion to their
transactions with the society.
Honest business practices. Cooperatives should deal openly and
honestly with their members and the general public.
Ultimate aim is to advance common good. The ultimate aim of all
cooperatives should be to aid in the participatory definition and
advancement of the common good.
Education. All cooperative societies should make provision for the
education of their members, officers and employees and of the general
public in the principles and techniques of cooperation, both economic
and democratic.
Cooperation among cooperatives. All cooperative organizations, in
order to best serve the interest of their members and their
communities, should actively cooperate in every practical way with
other cooperatives at local, national and international levels.
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INDEX OF ENERGY COOPERATIVES
Petit Jean
Electric Cooperative
State Related
Resources
Complaint Form (PDF) to file a formal enquiry with the Arkansas
Attorney General's office of alleged impropriety by Arkansas utility
providers.
Arkansas State Plant Board Pesticide Division has authority over
the application of chemicals, the testing of ground water and
responsibility for chemical-worker and public protection.
Independent Survey of Cooperative Member Attendance Policies at Board of
Directors Meetings
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