PRINCIPLES, NATURE

AND CHARACTERISTICS
OF COOPERATIVE AS
SOCIAL INTERPRISES
INTERNATIONAL established in 1895 to promote the cooperative model.

COOPERATIVE
ALLIANCES
is one of the oldest largest non-goverment organisation in
the world.

ICA cooperative development programme has been

running for over 40 years, it continues to assist and inform
existing co-peratives as well as promote the development
of new cooperative throughout the world.
 1895: Earl Grey and 1907: Earl Grey and 1917: William 1921: G. J. D. C.
Henry W. Wolff William Maxwell Maxwell Goedhart

FORMER
1927: Väinö Tanner 1945: Robert Palmer 1948: Harry Gill 1955: Marcel Brot
PRESIDENTS
AND
PRESENT 1960: Mauritz
Bonow
1975: Roger Kerinec 1984: Lars Marcus
1995: Graham
Melmoth

PRESIDENT
OF ICA 1997: Roberto 2001: Ivano
2009: Pauline Green
2015: Monique
Rodrigues Barberini Leroux

Ariel Guarco is the

new preseident
elected for the year
2017-2021
 • It is a year for ICA progress in the
development of the organization structure
and commitment to peace and improving
social condition throughout the world.

• ICA sign historic Memorandum of

understanding with the International Labour
Organization (ILO) " To fight poverty around

2004
the world" it was the aim of memorandum
and the Africa is the priority of it.
• Only non-goverment organisation invited
to speak at the extra ordinary african
uninons summit of head of state with the
aim of "reducing poverty based on self-
help"
The International Cooperative Alliance
was founded in London, England on 19
August 1895 during the 1st Cooperative
Congress.

In attendance were delegates from

cooperatives from Argentina, Australia,
Belgium, England, Denmark, France,
Germany, Holland, India, Italy,
Switzerland, Serbia, and the USA.
 Also called co-operative

From late latin cooperat-, past participle stem of cooperari means “to work together”.

Operating or striving jointly for the attaining of a certain ends.

1844 the Rochdale Pioneers founded the modern Cooperative Movement in Lancashire, England, to
provide an affordable alternative to poor-quality and adulterated food and provisions, using any
surplus to benefit the community.

COOPERATIVE
Historically, cooperatives are an integral part of a social
movement to address issues of sustainable and socially-
responsible business practices in response to the
perceived excesses of capitalism.

Alternatively, a cooperative is a specific type of economic

arrangement undertaken by individuals with a common
need and a social bond.

Rochdale Pioneers that are generally regarded as the

prototype of the modern cooperative society and the
founders of the Co-operative Movement in 1844.
CHARACTERISTICS OF
COOPERATIVE
1. VOLUNTARY ASSOCIATION
• A cooperative society is a voluntary association of persons and not of
capital. Any person can join a cooperative society of his free will and
can leave it at any time. When he leaves, he can withdraw his capital
from the society. He cannot transfer his share to another person.
The voluntary character of the cooperative association has two
implications:
(i) None will be denied the right to become a member and
(ii) The cooperative society will not compete anybody to become a
member.
 2. SPIRIT OF COOPERATION
• The spirit of cooperation works under the motto,
‘each for all and all for each.’ This means that
every member of a cooperative organisation
shall work in the general interest of the
organisation as a whole and not for his self-
interest. Under cooperation, service is of
supreme importance and self-interest is of
secondary importance.
3.DEMOCRATIC MANAGEMENT
• An individual member is considered not as a capitalist
but as a human being and under cooperation,
economic equality is fully ensured by a general rule—
one man one vote. Whether one contributes 50
rupees or 100 rupees as share capital, all enjoy equal
rights and equal duties. A person having only one
share can even become the president of cooperative
society.
 4. CAPITAL

• Capital of a cooperative society is raised from

members through share capital. Cooperatives are
formed by relatively poorer sections of society; share
capital is usually very limited. Since it is a part of govt.
policy to encourage cooperatives, a cooperative
society can increase its capital by taking loans from
the State and Central Cooperative Banks.
 5. FIXED RETURN ON CAPITAL
• In a cooperative organisation, we do not have
the dividend hunting element. In a consumers’
cooperative store, return on capital is fixed and it
is usually not more than 12 p.c. per annum. The
surplus profits are distributed in the form of
bonus but it is directly connected with the
amount of purchases by the member in one
year.
 6. CASH SALE

• In a cooperative organisation “cash and carry system”

is a universal feature. In the absence of adequate
capital, grant of credit is not possible. Cash sales also
avoided risk of loss due to bad debts and it could also
encourage the habit of thrift among the members.
7. MORAL EMPHASIS
• A cooperative organisation generally originates in the
poorer section of population; hence more emphasis is
laid on the development of moral character of the
individual member. The absence of capital is
compensated by honesty, integrity and loyalty. Under
cooperation, honesty is regarded as the best security.
Thus cooperation prepares a band of honest and
selfless workers for the good of humanity.
 8. CORPORATE STATUS

• A cooperative association has to be registered under

the separate legislation—Cooperative Societies Act.
Every society must have at least 10 members.
Registration is desirable. It gives a separate legal
status to all cooperative organisations—just like a
company. It also gives exemptions and privileges
under the Act.
Republic act 9520 ( Cooperative Code of 2008 )

ART. 3. General Concepts. - A cooperative is an

autonomous and duly registered association of persons,
with a common bond of interest, who have voluntarily
joined together to achieve their social, economic, and
cultural needs and aspirations by making equitable
contributions to the capital required, patronizing their
products and services and accepting a fair share of the
risks and benefits of the undertaking in accordance with
universally accepted cooperative principles.
UNIVERSAL COOPERATIVE
PRINCIPLES:
EVOLUTION FROM 1895 - 1995
August 19, 1895- International Cooperative alliance(ICA)
was founded in London, England during the first
cooperative movement. When ICA is founded it took upon
itself that task of refining the cooperative principle and the
further consolidation and expansion of cooperative
movement.

In the history of Alliance revisions to them have been

approved 3 TIMES after special commissions and
consulatation with alliance members at....
1937- The Congress of
Paris

1937 review affirmed four vital

principles
-Open membership
-democratic control
-dividend paid according to
business done
-limiter interest on capital
1966- The Congress of Vienna

1966 review declared six

essential principle
-Voluntary membership
-Democracy
-limited interest on share capital
-distribution of surplus
-provision for education
-cooperation among cooperatives
1995, September - The Centennial
Congress and General assembly
in Manchester, England
 1. Voluntary and Open Membership
cooperatives are voluntary
organizations, open to all persons

Final review called able to use their services and willing

"The Statement" to accept the responsibilities of
membership without gender, social,
racial, political or religious
discrimination.
 Final review called “ The Statement ”

2. Democratic Member Control 3. MEMBER ECONOMIC

Cooperatives are democratic
organisations controlled by their
members, who are actively
participate in setting their
policies and making decisions.
PARTICIPATION
Members contribute equitably to,
and democratically control, the
capital of their cooperative.
 Final review called “ The Statement ”

5. EDUCATION, TRAINING AND

INFORMATION
4. AUTONOMY AND Cooperatives provide education
INDEPENDENCE and trainings for their members,
Cooperatives are autonomous, self-
help organisations controlled by elected representatives, managers
their members. and employees so they can
contribute effectively to the
development of their co-
operatives.
 Final review called “ The Statement ”

6. CO-OPERATION AMONG
CO-OPERATIVES
Cooperatives serve their
members effectively and
strengthen the cooperative
movement by working together
through local, national, regional
and international structure.
7. CONCERN FOR
COMMUNITY
Cooperatives works for the
sustainable development of their
communities through policies
approved by their members.
ORGANIZATIONAL AND ETHICAL
VALUES OF COOPERATIVE
ORGANIZATIONAL
VALUES
• Equity
• Self-help
• Self-responsibility
• Solidarity
• Equality
• Democracy

ETHICAL VALUES
• HONESTY
• OPENNESS
• SOCIAL RESPONSIBILITY
• CARING FOR OTHERS
ORGANIZATIONAL VALUES
In addition to the Seven Cooperative
Principles, there are a number of
cooperative values that guide these
principles: Equity, Equality, Self-Help,
Democracy, and Solidarity.
According to the North country Cooperative
Foundation, “These are the values on which
the modern cooperative movement was
founded and the basis for the organization
of every cooperative enterprise in the world
today.”
EQUITY While “equality” is about giving people access to the same
resources and treating them the same – “equity” is the
concept of providing disadvantaged folks and privileged
people with fair accommodation and treatment according
to their needs - in order to put them on equivalent ground.

“Fairness does not mean

everyone gets the same.
Fairness means everyone
gets what they need.”
― Rick Riordan
 For example, an “equal” treatment of two people would
be to give them both three apples. However, if one
person already has two apples and the other person
has none, an equitable action would be to give the first
person one apple and the second person three apples.
Otherwise the first person would still have more apples
than the second.

 This is important in situations where an “equal” action

would continue to keep one person in an unfair position
over another. People are born into different positions
and our society provides certain individuals with
privileges that others do not share. Therefore,
equitability seeks to account for these unfair
advantages that certain individuals inherit by giving
people access to the proper resources, treatment, and
more – in order to help them gain equal and fair social,
economic, and political conditions.
This is the notion that a
co-op is an organization
that will directly benefit its
members and community
by the actions it takes and
the decisions its members
make. Therefore, a co-op
is not a charity; instead it
is a tool for individuals and
groups to use to directly
improve their lives and
communities through their
own work and effort.
 It is a major aspect of cooperation. In a
cooperative, all members are in charge; so
SELF-RESPONSIBILITY individuals must be accountable for their actions,
responsibilities, and duties. Thus, a co-op cannot
function properly if the members are neglectful
of their responsibilities to their job, the co-op,
their fellow members, and themselves.
Specifically, in Worker cooperatives, all members
are the owners and the body of the business, and
so a worker co-op depends on the actions and
accountability of the workers more than any
other business.
 SOLIDARITY
There is no
stability without This is the value of “fellowship” amongst members
of a co-op (worker-owners or member-owners) and
solidarity and no more, including: other co-ops, organizations, and
individuals who are linked by a shared concern or
solidarity without cause.
stability. Solidarity is the recognition that, in the cooperative
movement, the betterment of individuals’
~ Jose Manuel immediate and distant futures depends on the
improvement of others’ lives and the fulfillment of
Barroso their goals (and especially for those who are from
less privileged backgrounds). Thus, it is essential
for cooperatives and cooperators to recognize the
importance of working together to support others in
their struggles, goals, and efforts – and for others to
do the same for them.
• Only one vote shall be
entitled to one member
regardless of the amount of
contribution he/she has.
Cooperatives are
controlled, managed and
operated by its members,
thus every member's
suggestions are accepted
and heard for the
betterment the services or
products being extended.
Every member, regardless
of the amount of their
contribution are treated
fairly and whose voice or
opinion are also honored
and heard.
 the kind of values that have to
do with being good or doing right
ETHICAL VALUES thing.
• the quality of being fair and
truthful : the quality of
being honest - good and
truthful : not lying, stealing,
or cheating - implies a
refusal to lie, steal, or
deceive in any way. - not
hiding the truth about
someone or something :
not meant to deceive
someone
an honest way of talking or behaving in which
you do not try to hide anything. -Having a high
level of openness is important in jobs that
require creative thinking and a flexible attitude.
Jobs such as advertising, research, and other
artistic occupations all benefit from high
openness.

OPENNESS
 SOCIAL RESPONSIBILITY
is an ethical theory, in which individuals are
accountable for fulfilling their civic duty; the actions of
an individual must benefit the whole of society. In this
way, there must be a balance between economic
growth and the welfare of society and the environment.
If this equilibrium is maintained, then social
responsibility is accomplished.
CARING FOR
OTHER
 Caring involves dedicating
yourself them, putting your own
needs aside, and paying
attention to what they need. -
“Care” also refers to providing
for, looking out for, or protecting
someone.
 GROUP 3

Baal , Diana Rose N.

Capariño , Ofelia
Ernia, Cherry Anne
Jardiniano , Patricia Anne
Landayan , Anjello
Morera , Nemesio