Salient features of Cooperation

Salient features of Cooperation

Introduction

The core values and essential characteristics of cooperation constitutes the salient features of cooperation in the broader sense.  These special features of cooperation distinguish it from other forms of organisation. They are as follows:

1. Voluntarism: The first and foremost character of cooperation is voluntarism.  The spirit of cooperation lies on the voluntarism. Voluntarism means an individual is entitled to join or leave an organisation without any compulsion. The decision to join or leave an organisation is purely vested with the individual’s own decision and without the compulsion / coercion from external forces.

2. Commonality: The special features of cooperation is the existence of commonality among its members.  The members who join the cooperation are having common character viz common need t be fulfilled. Common need may be on economic, social, health and other areas.  The main purpose of the members to join in cooperation is primarily to fulfil common economic need allied with social, health, emotional and such other needs. Prevalence of homogeneity of need among the members is the thriving force which enable them in utilising the services of cooperation.

3. Universality: Cooperation is a general form of organisation and it is applicable to any walks of life of human being. Cooperation can be organised for production, processing, industrial, marketing, consumers, service and other purposes. Similarly the membership in a cooperative society is not restricted to any particular group.  It is open to all persons who can make use of its services.

4. Neutrality: Cooperation is always neutral to politics, religion, race, nationality and such other discriminations found among human beings.  Cooperation is not considers any  kind of discrimination among its members.  Starting from membership in each and every activity of cooperation it do not discriminate its members based on social, political, economical, religion, gender and such others.

5. Equality: Equality means treatment of each member of the cooperation on par with other member and no member is treated superior (or) inferior (higher or lower) [equal treatment]. Each member is given equal rights to participate in the management, decision making and utilising the services of the cooperatives.  It completely rules out capital and others as the sources of power.

6.  Mutuality: In cooperatives, each one is joined to fulfil the common need mutually.  The essence of cooperation is ‘each shall works for all and all shall work for each in attainment of their common need”.  Each for all and all for each.

7. Democracy: Cooperation seeks to realise democracy in managing the affairs by its members.  The democratic control by the members is ensured by providing equal opportunity for everyone to participate in the administration and by giving equal voting rights to all.  One member one vote is the guiding rule to administer democracy in action in cooperatives.

8. Autonomy: Autonomy means freedom to govern the cooperation itself independently by its owners.  The members are the owners of the cooperative and they have full control and are the ultimate authority of the enterprise.  The concept vests with the general body of members and it determines everything in cooperatives.  Self control

9. Participation:  In a cooperative form of organisation, a member has to participate actively in three major areas.  They are (1) he has to subscribe the share capital to strengthen the capital base; (ii) he has to manage the affairs of the cooperative effectively and efficiently; and (iii) utilise the services of the cooperative effectively.

10. Equity: A cooperative organisation may earn surplus over costs as it adopts cost plus pricing policy.  The profit so arrive is out of participation of members in its business activities.  It should be re-distributed among the members.  It should not based on the quantum of share capital subscribed but it is to be distributed on the basis of the degree of participation by each member in its business. Cooperatives practices justice in distribution of net business result among it members.  (Distributive Justice)