Principles of Cooperation - Rochdale
Principles of Cooperation
Meaning
The
term principle had its origin from the Latin word ‘principium’. Principium
means basis. Therefore principle means the basis. If it is applied to an
organisation, principles means ‘a rule of an organisation’. Cooperative
principles means ‘a set of rules which govern the life and activity of
cooperative organisation’.
Evolution
of Cooperative Principles
The
evolution of cooperative principles is closely related to the evolution of
cooperatives. The evolution of
cooperatives dates back to early 19th century. During this period,
economic systems throughout the world, especially in England, had great
changes. The introduction of stream
engine and mechanisation of production processes resulted in the industrial
revolution. The factory system came into
existence. The entire society was divided
into two classes viz., have’s and havenot’s.
A kind of blind capitalistic economy was emerged. The condition of the employees and the poor
were miserable. The agricultural operations were also faced many problems.
Several efforts
were taken to safeguard the interest of the people at large and particularly
the poor and employees. Many cooperatives were organised during 1830’s. Almost all of them were failed. The first successful cooperative society was
organised by a group of 28 flannel weavers of Rochdale. They registered their society as “Rochdale
society of equitable pioneers” on 24th October 1844 and commenced
the business on 21st December 1844. They adopted certain rules and
regulations for the successful conduct of their business. The rules and
regulations framed and adopted / followed by the Rochdale Pioneers are regarded
as the principles of Cooperation.
They are:
1. Democratic control
2. Open membership
3. Limited interest on
share capital
4. Patronage dividend
5. Cash trading
6. Education of
members
7. Political and
religious neutrality
8. Supply of pure and
unadulterated goods.
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