Briefly explain the principles of co-operatives. (10 Marks)

Co-operatives operate based on principles such as voluntary membership, democratic control, and economic participation of members. They also emphasize education, cooperation among co-operatives, and concern for their community. These principles ensure that co-operatives serve the interests of their members and promote sustainable community development.
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Answered by Anonymous | 2025-07-05

The principles of cooperatives are internationally recognized guidelines that direct the functioning and ethos of cooperative societies.
First, cooperatives operate on voluntary and open membership, meaning anyone willing to accept the responsibilities of membership can join, without discrimination based on gender, social status, race, or religion. Second, they are governed by democratic member control, where each member has equal voting rights, typically one member, one vote, ensuring that decisions reflect the collective will. Third, members contribute equitably to, and democratically control, the capital of their cooperative. Surpluses are often used for the development of the cooperative or distributed among members in proportion to their transactions.
Fourth, cooperatives maintain autonomy and independence, even when entering agreements with external organizations or raising capital, ensuring that members retain democratic control. Fifth, they emphasize education, training, and information for members, elected representatives, and employees, enabling effective participation and development. Sixth, cooperatives practice cooperation among cooperatives, working together at local, national, and international levels to strengthen the movement. Lastly, they show concern for the community, working towards the sustainable development of society through policies approved by their members.
These principles ensure that cooperatives remain member-focused, democratic, and socially responsible organizations.

Answered by anant194 | 2025-07-05