The Co-operative Movement

1. The Co-operative Movement

2. Birth of a Movement • 1844 – Rochdale Pioneers • Rochdale Co-operative Society • Ideals spread nationally and internationally

3. In Argentina, co-operatives are responsible for providing direct employment to over 233,000 individuals. In Canada, co-operatives and credit unions employ over 155,000 people. The Desjardins movement (savings and credit co-operatives) is the largest employer in the province of Québec. In France, 21,000 co-operatives support over 4 million jobs.In Iran, co-operatives have created and maintain 1.5 million jobs. In Italy, 70,400 co-operative societies employed nearly 1 million people in 2005.

4. In Benin, FECECAM, a savings and credit co-operative federation provided $16 million in rural loans per annum.In Brazil, co-operatives are responsible for 40% of the agricultural GDP. Brazilian co-operatives export 7.5 million tons of agricultural products for a value of $2.83 billion to 137 countries each year. In Côte d'Ivoire co-operatives have invested $26 million for setting up schools, building rural roads and establishing clinics.In Denmark, co-operatives hold 36.4% of retail market.

5. In India 250 Million people are in membership of a co-operativeIn Norway forestry co-operatives are responsible for 76% of timber production.In Singapore, consumer co-operatives hold 55% of the market in supermarket purchases and have a turnover of $700 million.In the United States more than 30 co-operatives have annual revenue in excess of $1 billion each. Approximately 30% of farmers' products in the US are marketed through 3,400 farmer-owned co-operatives.

6. In France, 9 out of 10 farmers are members of agricultural co-operatives; co-operative banks handle 60% of the total deposits and 25% of all retailers in France are co-operatives.In Japan, the agricultural co-operatives report outputs of $90 billion with 91% of all Japanese farmers in membership. In Kenya, co-operatives are responsible for 45% of the GDP and 31% of national savings and deposits. In Kuwait, the Kuwaiti Union of Consumer Co-operative Societies handle 70% of the national retail trade

7. The UK Co-operative Movement Over 6000 jointly owned, democratically controlled, enterprising businesses, Owned by more than 11 million people More than 200,000 jobs Over £31 billion in turnover £10 billion in assets Source: The Co-operative Review 2016

8. What is a Co-operative? A co-operative is an autonomous association of persons united voluntarily to meet their common economic, social and cultural needs and aspirations through a jointly-owned and democratically controlled enterprise

9. The Co-operative Difference A Co-operative is based around a set of organisational principles. This is the means by which co-operatives put their values into practice. The current values and principals were agreed at the International Co-operative Alliance (ICA) www.ica.coop Congress in 1995 – its centenary congress.

10. Co-operative Values Self-help Self-responsibility Democracy Equality Equity Solidarity

11. The Co-operative Principles The 1995 Centenary Congress of the International Co-operative Alliance (ICA), developed these principles from those of the Rochdale Pioneers: Voluntary and Open Membership Co-operatives are voluntary organisations open to all persons able to use their services and willing to accept the responsibilities of membership without gender, social, racial, political or religious discrimination

12. The Co-operative Principles Democratic Member Control Co-operatives are democratic organisations controlled by their members who actively participate in setting their policies and making decisions Men and women serving as elected representatives are accountable to their members

13. The Co-operative Principles Member Economic Participation Members contribute equitably to, and control democratically, the capital of their Co-operative Members usually receive limited compensation, if any, on capital subscribed as a condition of membership

14. The Co-operative Principles Member Economic Participation Members allocate surpluses for any of the following purposes • Developing their Co-operative, possibly by setting up reserves, part of which at least would be indivisible • Benefiting members in proportion with their transactions with the Co-operative • Supporting other activities as approved by membership

15. The Co-operative Principles Autonomy and Independence Co-operatives are autonomous, self help organisations controlled by their members If they enter into agreements with other organisations, including governments, or raise capital from external sources, they do so on terms that ensure democratic control by their members and maintain their Co-operative autonomy

16. The Co-operative Principles Education, Training and Information Co-operatives provide education and training for their members, elected representatives, and employees so that they can contribute effectively to the development of their Co-operatives They inform the general public – particularly young people and opinion leaders – about the nature and benefits of Co-operation

17. The Co-operative Principles Co-operation among Co-operators Co-operatives serve their members most effectively and strengthen the Co-operative movement by working together through local, national, regional and international structures

18. The Co-operative Principles Concern for the Community Co-operatives work for the sustainable development of their communities through policies approved by their members

19. What Is a Legal Structure? Governing Document Legal Form Legal Structure

20. Legal Form & Organisational Type Legal Form: How an organisation is seen in the eyes of the law, providing a statutory and regulatory framework. Organisational Type: How a group may further identify itself, providing a common identity amongst groups. Requires a legal form. Status: Provides an additional regulatory framework, relating to how the group operates, which is over and above the legal form .

21. Legal Forms Organisation Unincorporated Unconstituted Sole Trader Partnership Constituted Partnership Association Friendly Society Limited Liability Partnership Incorporated Company Limited by Guarantee Company Limited by shares Public Limited Company Private Limited Company Bona fide Co-operative Society Society for the Benefit of the Community Incorporated Charity Friendly Society

22. Co-operative Organisational Types Defines what it does or how it goes about it: largely self-defining I.e. not defined by law. Consumer Worker Housing Consortia Community Community (share holders)

23. STATUS Examples Credit Union (conferred by 1977 Credit Union Act)‏ Charity (conferred by Charities Act 2006 and by Common Law and Case Law)‏ Pension Fund (conferred by Pensions Acts 1995-2004)‏ Community Interest Company [CIC] (Conferred by Companies {Audit Investigations and Community Enterprise} Act 2004)‏

24. Decision Making Is an area of study in its own right but an area of especial interest to democratic organisations like Co-operatives Top Tips Get the structure and aims right and clear at the beginning Know the difference between policy, strategy, and operational decisions Learn about subsidiarity and accountability Think about information flow

25. Decision Making Data Decision Why What Who When Where With what Information Do Meaning Process Monitor

26. Conflict Resolution Avoid it (top tips) Be very clear in the first place among the founders on Aims and structure Set the tone and culture early Make high quality decisions Have clear policies – member contract, code of behaviour, grievance procedure Be clear about delegated powers and responsibility Induction training for new members

27. Conflict Resolution Deal with it (top tips) React quickly Ensure there is a listening mechanism Establish facts Believe in continuous improvement If stuck get in mediation