The Rochdale Principles are a set of ideals for the operation of cooperatives. They were first set out by the Rochdale Society of Equitable Pioneers in Rochdale, England, in 1844, and have formed the basis for the principles on which co-operatives around the world operate to this day. The Rochdale Society of Equitable Pioneers, founded in 1844 was an early Consumer co-operative, and the first to pay a patronage Dividend, forming the basis for the Rochdale is a large Market town in Greater Manchester, England England is a Country which is part of the United Kingdom. Its inhabitants account for more than 83% of the total UK population whilst its mainland Year 1844 ( MDCCCXLIV) was a Leap year starting on Monday (link will display the full calendar of the Gregorian Calendar (or a Leap year "The world " is a proper noun for the planet Earth envisioned from an Anthropocentric or Human Worldview, as a place The implications of the Rochdale Principles are a focus of study in co-operative economics. Co-operative economics is a field of Economics, Socialist economics, Co-operative studies, and Political economy, which is concerned with The original Rochdale Principles were officially adopted by the International Co-operative Alliance (ICA) in 1937 as the Rochdale Principles of Co-operation. The International Co-operative Alliance (ICA is a non-governmental Co-operative Federation or more precisely a Co-operative union representing Co-operatives Updated versions of the principles have been adopted by the ICA in 1966 as the Co-operative Principles and in 1995 as part of the Statement on the Co-operative Identity. Year 1966 ( MCMLXVI) was a Common year starting on Saturday (link will display full calendar of the 1966 Gregorian calendar. Year 1995 ( MCMXCV) was a Common year starting on Sunday. Events of 1995 The Statement on the Co-operative Identity, promulgated by the International Co-operative Alliance (ICA defines and guides co-operatives worldwide
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1995 version
The Rochdale Principles according to the 1995 ICA revision are detailed below. [1]
Voluntary and open membership:
The first of the Rochdale Principles states that co-operative societies must have an open and voluntary membership. A volunteer is someone who works for a community or for the benefit of environment primarily because they choose to do so According to the ICA's Statement on the Co-operative Identity, "Co-operatives are voluntary organisations, open to all persons able to use their services and willing to accept the responsibilities of membership, without gender, social, racial, political or religious discrimination. "
Anti-discrimination
To discriminate socially is to make a distinction between people on the basis of class or category without regard to individual merit. A society is a Population of Humans characterized by patterns of relationships between individuals that share a distinctive Culture and Institutions Distinction is a social force that places different values on different individuals An English Noun The English noun people has two distinct fields of application as a countable noun, a group of Humans Social class refers to the hierarchical distinctions (or stratification) between individuals or groups in Societies or Cultures. Categorization is the process in which ideas and objects are recognized, differentiated and understood. Examples of social discrimination include racial, religious, sexual, sexual orientation, disability, and ethnic discrimination. List of racism-related topics|Racism by country Racism, by its simplest definition is the belief that race is the primary determinant of human traits and capacities and that Religious discrimination is valuing or treating a person or group differently because of what they do or do not believe Sexism is the belief or attitude that one Gender or Sex is inferior to or less valuable than the other and can also refer to a Hatred or distrust towards Sexual orientation is believed to refer to "an enduring pattern of emotional romantic and/or sexual attractions to men women or both sexes In the late 20th and early 21st centuries a number of countries have passed laws aimed at reducing Discrimination against people with disabilities. List of racism-related topics|Racism by country Racism, by its simplest definition is the belief that race is the primary determinant of human traits and capacities and that To fulfill the first Rochdale Principle, a Co-operative society should not prevent anyone willing to participate from doing so on any of these grounds. However, this does not prohibit the co-operative from setting ground rules for membership, such as residing in a specific geographic area or payment of a membership fee to join, so long as all persons meeting such criteria are able to participate if they so choose.
Motivations and rewards
Given the voluntary nature of co-operatives, it requires a motivation to encourage people to participate. Each person's motivations will be unique, and will vary from one co-operative to another, but will often be a combination of the following:
- Financial - Some co-operatives are able to provide members with financial benefits.
- Quality of life – serving the community through a co-operative because doing service makes ones own life better - is perhaps the most significant motivation for volunteering. It is often mixed with a good dose of altruism. Included here would be the benefits people get from being with other people, staying active, and above all having a sense of the value of ourselves in society that may not be as clear in other areas of life.
- Giving Back – many people have in some way benefited from the work of a co-operative, or more generally, and volunteer to give back.
- Altruism – volunteering for the benefit of others. Most people argue that there are no purely altruistic volunteers – altruism is a common motivation but never the only motivation for sustained commitment to serve – there is always some aspect of personal gain or satisfaction
- A sense of duty – some see participation in community as a responsibility that comes with citizenship – in this case they may not describe themselves as volunteers
- Career Experience - Volunteering offers experiences that can add to career prospects.
Democratic member control
The second of the Rochdale Principles states that co-operative societies must have democratic member control. According to the ICA's Statement on the Co-operative Identity, "Co-operatives are democratic organisations controlled by their members, who actively participate in setting their policies and making decisions. Men and women serving as elected representatives are accountable to the membership. In primary co-operatives members have equal voting rights (one member, one vote) and co-operatives at other levels are also organised in a democratic manner. "
Member economic participation
Member economic participation is one of the defining features of co-operative societies, and constitutes the third Rochdale Principle in the ICA's Statement on the Co-operative Identity. According to the ICA, co-operatives are enterprises in which "Members contribute equitably to, and democratically control, the capital of their co-operative. At least part of that capital is usually the common property of the co-operative. Members usually receive limited compensation, if any, on capital subscribed as a condition of membership. Members allocate surpluses for any or all of the following purposes: developing their co-operative, possibly by setting up reserves, part of which at least would be indivisible; benefiting members in proportion to their transactions with the co-operative; and supporting other activities approved by the membership. This principle, in turn, can be broken down into a number of constituent parts.
Democratic control
The first part of this principle states that "Members contribute equitably to, and democratically control, the capital of their co-operative. At least part of that capital is usually the common property of the co-operative. " This enshrines democratic control over the co-operative, and how its capital is used. Democracy is a form of government in which the supreme power is held completely by the people under a free electoral system
Limitations on member compensation and appropriate use of surpluses
The second part of the principle deals with how members are compensated for funds invested in a Co-operative, and how surpluses should be used. Unlike for profit corporations, co-operatives are a form of social enterprise. A corporation is a separate legal entity usually used to conduct business Social enterprises are social mission driven organizations which trade in goods or services for a social purpose Given this, there are a three purposes for which surplus funds can be used, or distributed, by a Co-operative.
- "Members usually receive limited compensation, if any, on capital subscribed as a condition of membership. "
- "Developing their co-operative, possibly by setting up reserves, part of which at least would be indivisible;" in other words, the surplus can be reinvested in the co-operative.
- "Benefiting members in proportion to their transactions with the co-operative;" for example, a Consumers' Co-operative may decide to pay dividends based on purchases (or a 'divvi'). A consumers' cooperative is a Cooperative business owned by its customers for their mutual benefit. Dividends are payments made by a Corporation to its Shareholder members
- "Supporting other activities approved by the membership. "
Autonomy and independence
The fourth of the Rochdale Principles states that co-operative societies must be autonomous and independent. According to the ICA's Statement on the Co-operative Identity, "Co-operatives are autonomous, self-help organizations controlled by their members. If they enter to agreements with other organizations, including governments, or raise capital from external sources, they do so on terms that ensure democratic control by their members and maintain their co-operative autonomy. "
Education, training, and information
The fifth of the Rochdale Principles states that co-operative societies must provide education and training to their members and the public. According to the ICA's Statement on the Co-operative Identity, "Co-operatives provide education and training for their members, elected representatives, managers, and employees so they can contribute effectively to the development of their co-operatives. They inform the general public - particularly young people and opinion leaders - about the nature and benefits of co-operation. "
Cooperation among cooperatives
The sixth of the Rochdale Principles states that co-operatives cooperate with each other. According to the ICA's Statement on the Co-operative Identity, "Co-operatives serve their members most effectively and strengthen the co-operative movement by working together through local, national, regional and international structures.
Concern for community
The seventh of the Rochdale Principles states that co-operative societies must have concern for their communities. According to the ICA's Statement on the Co-operative Identity, "Co-operatives work for the sustainable development of their communities through policies approved by their members. "
Previous versions
Original version (1844)
- Open membership. Year 1844 ( MDCCCXLIV) was a Leap year starting on Monday (link will display the full calendar of the Gregorian Calendar (or a Leap year
- Democratic control (one person, one vote).
- Distribution of surplus in proportion to trade. Trade is the willing exchange of goods, services, or both Trade is also called Commerce.
- Payment of limited interest on capital.
- Political and religious neutrality.
- Cash trading (no credit extended).
- Promotion of education.
ICA revision (1966)
- Open, voluntary membership. The International Co-operative Alliance (ICA is a non-governmental Co-operative Federation or more precisely a Co-operative union representing Co-operatives Year 1966 ( MCMLXVI) was a Common year starting on Saturday (link will display full calendar of the 1966 Gregorian calendar.
- Democratic governance.
- Limited return on equity. In accounting terms after all liabilities are paid ownership equity is the remaining interest in Assets If valuations placed on assets do not exceed liabilities
- Surplus belongs to members.
- Education of members and public in cooperative principles.
- Cooperation between cooperatives.
References
See also
- Rochdale College (a Canadian experiment in Rochdale principles)
- Rochdale, Queens, a cooperative housing project in New York. Opened in 1968 Rochdale College was an experiment in student-run Alternative education and co-operative living in Toronto, Canada. Rochdale (also called Rochdale Village) is a 20-building 5860-apartment residential Cooperative designed
External links
- The International Co-operative Alliance
- Statement on the Co-operative Identity
- Revisions to the Co-operative Principles
- Cooperative Principles Then and Now
- Principles of the International Co-operative Alliance
- A variant of the 1966 principles from Circle Pines Center
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