Cooperative societies are organizations owned and managed by their members, intended to serve the mutual economic welfare of financially limited individuals in society. These cooperatives engage in various types of businesses such as credit unions, consumer cooperatives, and agricultural cooperatives. Establishing and effectively managing such organizations require certain fundamental principles or ideals to be upheld by their managers and members. The following are highlighted below:
The primary principle upon which cooperatives are founded. The idea of uniting economically disadvantaged and equal individuals for mutual welfare through the formation of cooperative organizations.
Cooperative societies are established on the ideal of equality. Members, regardless of their social, economic, or familial status, are entitled to equal rights and dignity within the organization. Success is only possible when this kind of equality is established among the members.
Another fundamental principle is "working together". Having a cooperative and supportive mindset among every member is crucial. The presence of mutual cooperation and empathy among members is essential for the success of a cooperative.
The quality of honesty is essential within a cooperative organization, especially among its directors. Unity and confidence among members are crucial. Lack of honesty leads to doubts and distrust among the members, which can hamper progress in business.
Established on the principle of "serving all, serving each". It's not just about individual benefit but serving the collective self-interest. Therefore, a mentality of public service should be present among the members.
A cooperative society should always adhere to democratic policies and procedures. Democratic rules are followed in the election of management committees and in decision-making processes.
To enhance cooperation, a friendly relationship among cooperative members is essential. Every member should endeavor to create genuine friendships with each other and the leadership.
Equal Voting Rights:
A unique symbol of equality in cooperatives is the equal voting rights of each member. Despite their shareholding or financial status, each member has an equal say in the decision-making process.
Maintaining a non-biased and non-partisan approach is essential for the advancement of a cooperative. Overly active religious or political influence can hinder success.
Cooperatives uphold the virtue of thriftiness by using the collected funds sensibly. Efforts are made to minimize expenses and produce and supply goods at a low cost.
Cooperatives hold a major principle of retaining a portion of the profit and transferring 15% to a savings fund and 3% to a development or welfare fund, different from other business organizations' independence.
Cooperative societies are created and regulated by cooperative laws. Anyone willing cannot just close the organization or cause disruption. The success of any business relies on its stability.
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