National Cooperative Month spotlights unique type of business
Each day, all across the nation, 120 million people solve problems and enjoy better lives because of cooperatives such as West Florida Electric Cooperative. Four of every ten Americans -- over 100 million people -- rely on cooperatives for agriculture, banking, health care, housing, electric and telephone service, grocery retailing and many other products and services. In recognition of the roles co-ops play in nearly every part of our lives, October is National Cooperative Month.
Cooperatives are like any other businesses in many ways, but they have certain unique and important characteristics. They’re owned and democratically-controlled by their members – the people who’ve organized to provide themselves with needed goods and services. Co-ops are voluntary and are operated for the benefit of their member-owners. Co-ops take advantage of economies of scale by pooling buying power. All net savings remaining after bills are paid and money is set aside for operations and improvements are returned to the co-op’s members.
Member-owners share equally in the control of their co-ops – They meet at regular intervals, review detailed reports and elect directors from among themselves. The directors in turn hire management to oversee the co-ops’ day-to-day affairs in a way that serves members’ interests.
Whether they’re consumer-owned, like WFEC, producer-owned or worker-owned, all cooperatives operate according to the following principles:
Voluntary and Open Membership -- Cooperatives are voluntary organizations, open to all people able to use its services and willing to accept the responsibilities of membership, without gender, social, racial, political or religious discrimination.
Democratic Member Control -- Cooperatives are democratic organizations controlled by their members, one member-one vote, who actively participate in setting policies and making decisions.
Members' Economic Participation -- Members contribute equally to, and democratically control, the capital of the cooperative. This benefits members in proportion to the transactions with the cooperative rather than on the capital invested.
Autonomy and Independence -- Cooperatives are autonomous, self-help organizations controlled by their members. If the co-op enters into agreements with other organizations or raises capital from external sources, it is done so based on terms that ensure democratic control by the members and maintains the cooperative autonomy.
Education, Training and Information -- Cooperatives provide education and training for members, elected representatives, managers and employees so they can contribute effectively to the development of their cooperative. Members also inform the general public about the nature and benefits of cooperatives.
Cooperation among Cooperatives -- Cooperatives serve their members most effectively and strengthen the cooperative movement by working together through local, national, regional and international structures.
Concern for Community -- While focusing on member needs, cooperatives work for the sustainable development of communities through policies accepted by the members.
For more information about cooperatives, log on to www.co-opmonth.org.
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