What is a Co-op?

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By KimOutandAbout


Cooperatives Offer Alternatives

You may be missing that wonderful organic foods or retail Cooperative that carried the best coffee you ever tasted. Or you may have benefitted from a Co-op in a college town. That is how most Americans remember Cooperatives, but Co-ops exist for a wide range of economic and social benefit activities, at both micro and macro levels. A Cooperative is a voluntary, autonomous association of people who join together to meet their common needs and goals through a jointly owned and democratically controlled enterprise. Members own shares in the Co-op enterprise, and each member votes on issues concerning the Co-op’s values and goals. Membership in a Co-op is open without discrimination. No one can force you to do anything, implicit to your personal freedom, so Cooperators agree that they can contribute equally or to the best of each person’s ability, and agree that all members share responsibility to actively participate in making decisions and setting and following the policies of the Co-op. Every member may contribute a small sum of capital which entitles each to one vote and participation in the Co-op. The capital of the Cooperative is the common property of the Co-op. Members do not get a return on their membership the way a stockholder gets a regular return on the value of stock. Return value and quality are built through the practices and values of the Cooperative. Surpluses can be used to develop the Co-op, set up reserves, benefit members in proportion to their transactions with the Co-op, and to support activities approved by the membership. For example, the organic food Co-op may use its surplus, or the money coming in from memberships, at the register and through classes, to buy a new frig, lower prices to Co-op members, offer a wider range of local and organic foods and approved goods, network with other Co-ops, offer education classes and workshops, provide support for community projects, as well as meet the expenses of the Cooperative enterprise. For example in paying a professional manager and staff who are accountable to the membership and its board of directors, and are members. Unlike buying clubs and CNAs, the Co-op member does not have to buy or contract for more food or bulk purchases than they need, or risk disappointment with a single source. If the Co-op enters into an agreement with other organizations, such as governments, commercial distributors or credit unions, these agreements must be done in a way that ensures democratic control of the enterprise by its members and autonomy from outside leverage. Co-ops offer alternatives to commercial super markets, commercial healthcare companies, stock companies and capitalist enterprises. Co-ops also make good neighbors in economic development, see www.ica.coop for info. Co-op values include democracy, self-help, equality, social and personal responsibility, community, the common good and caring for others.

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