“The principle of cooperative society is ‘each for all and all for each’.”
The cooperative movement is the outcome of economic and social imbalances created by the industrial revolution. The industrial revolution led to the division of society into capitalist and labor classes. Capitalists started exploiting labor and other weaker sections of society for selfish gains. The weaker sections started the cooperative movement to protect and promote their interests against such exploitation.
The main objective of sole tradership partnership and Stock Company is to earn profit but a cooperative society is formed to protect the rights of poor and to provide goods and services at lowest price to the members. In 1844, the cooperative movement was started by Robert Owen in England with 28 flannel weavers and decided to establish a store named “Rochdale Society of Equitable Pioneers”. It was a consumer cooperative this, inn 1846, the Agriculture credit cooperative societies and Cooperative Banks was established in Germany. The cooperative society mutual cooperation.
In the Sub-continent, the movement of cooperative society was started in 1895. The government passed the Cooperative Credit Act 1904for the proper supervision and guidance of cooperative societies. The main objective of the cooperative movement in the sub-continent was to free the small and needy farmers from the clutches of moneylenders and sahukara who used to give loans on high rates of interest and inhuman terms. In case of non-payment of loans the farmers had to lose the ownership of their lands. Therefore, the government appointed an officer Mr. Nicholson to prepare a report on this issue and the Act 1904 was promulgated in the light of his report.
“Cooperative society is an association of persons who voluntarily pool their resources for utilizing them for the mutual welfare of members itself”
- An association of persons
- United voluntarily
- For self-help and mutual aid among members
- Achieving the better living standard
Organizational Principles of Cooperative Society
- Voluntary Membership
The membership of the society is voluntary and open for all persons. Moreover, a member can leave the society at any time by giving a due notice.
The basic or main objective of the establishment of society is to work on the principle of “All for each and each for all”.
- Democratic Style
Every member cooperative society has only one vote. In other words all the members of society have equal rights irrespective of their contribution is equal.
- Non-political Institution
The society has no connection and affiliation with any political party and the scope of its activities is restricted to achieve its specific objectives only.
- Character Building
The main purpose of forming a cooperative society is the welfare of its members, which not only increases their standard of living but also improves their moral values.
Represented by Seerat Francis