Aspects / Benefits of Cooperation

Aspects / Benefits of Cooperation.

The aspects / benefits of cooperation are classified into three categories viz economic, social and moral/ethical aspects.

Economic Aspects

1.     Aimed to satisfy the common economic needs

The main aim of organising cooperative organisation is to satisfy the common economic needs of the members.

2.     Provide economic opportunities

The cooperative form of organisation provides opportunities for the members to practice the habit of thrift, savings, contribution to share capital and utilising the services of the cooperative at fair prices.

3.     Act as shield for poor and week

The cooperative organisation act as a shield for the poor and weaker sections of the people against the evils of capitalism such as economic power, exploitation, over charge of customers, earn profit and concentration of wealth.

4.     An ideal economic system

Cooperation is the via-media between capitalism and socialism.  It incorporates the advantages of both the systems and avoids the demerits of both the systems.

5.     Bridges the gap between have’s and have not’s.

Cooperatives bridge the economic gap between have’s and have not’s by providing economic benefits in the form of economic opportunities, better services at reasonable cost, distribution of dividends and practicing distributing justice.

6.     Elimination of middlemen activities

Being user-oriented non-profit organisation, cooperatives by expanding the market share, curb the exploitation and monopolistic tendencies, correct market imperfections and eliminate middlemen’s activities.

7.     Serves at reasonable cost

Since cooperatives aim at service rather than profit, it adopts the policy of selling below the market price (active price policy).  This results in serving the members at reasonable cost.

8.     Encourage the practice of thrift and savings

Cooperatives encourage its members to practice the habits of thrift and savings and thereby increase the financial strength of its members as well as of the society.

9.     Represents collective ownership and properties

Members contribute economically in the form of share capital which enables the cooperatives to accumulate its assets.  The members get equal rights of control of the cooperative and its properties collectively as well as protects the possible risks collectively.

10. Ensures economic democracy

Cooperatives ensure economic democracy by distributing the surplus earned by it equitably (distributive justice) to the members.  The surplus is distributed according to the magnitude of services utilised by the members but all members have equal control over the enterprise.

Social Aspects  / Benefits

1.     Training in Self Help

Cooperatives train the people to take initiatives in organising, assuming responsibilities in administration, create experts and ultimately teach people to administer their own affairs.

2.     Development of Weaker Sections

Cooperatives set right the imbalances in economic development. It contribute to reduction of disparities of income and wealth.  This enables the development of weaker sections of the society.

3.     Preservation of Dignity of Man

Cooperatives seek to preserve the dignity of man.  Cooperatives give equality of opportunities and equality of control to all the members irrespective of their wealth and social positions.

4.     Collective Spirit for Betterment

Collective spirit of cooperatives helps to make betterment of the people and betterment of the society.

5.     Social Harmony

Cooperatives aim at establishing harmonious social relations with one another.  There is no place for conflict (competition, class struggle, favouritism, biased treatment) in cooperatives.

6.     Social Welfare

Cooperatives take up a variety of welfare activities including education, training, consumer protection, housing, recreation and so on not only for its members but also for the public.

7.     Social Change

Cooperatives bring the development of sense of friendship and social responsibility against individualism / selfishness.

Ethical Aspects

1.     Human Values

Cooperation fosters human values such as oneness, brotherhood, equality, unity, solidarity and other values for successful working of cooperation and peaceful living.

2.     Builds unselfishness

Cooperation removes the character of selfishness among the members. It develops the character of unselfishness among its members which enables the creation of an environment suitable for becoming fine human being.

3.     Rewards for honest

Honesty is the base value expected from the members of cooperation in the areas of conducting the business affairs.  Cooperation returns money value for member’s honesty, sincerity and loyalty.

4.     Cooperative spirit

Cooperation aims at the practice of each for all and all for each which signifies the good fellowship and cooperative spirit among the members.

5.     Better hope for progress

Positive attitude is developed among the members through mingling with others, knowledge sharing, exposure to new situations, working together for common cause and so on.  This instils into man’s minds the ideals of hope and progress and outlook on life.