* What is a Co-operative?
On this page ...
- Co-op overview
- Co-op Survivability Reports
- Co-ops are diverse
- Co-ops are durable
- Co-op facts & figures and more links
- Check out the FastLinks on the right for more information
OVERVIEW
Co-operatives (or “co-ops) are owned by their members who use their services or purchase their products. Co-ops can provide virtually any product or service, and can be either non-profit or for-profit enterprises. The co-operative sector keeps dollars circulating within the local economy, provides secure employment and is a means to revitalize and sustain healthy communities.
As its name implies, a co-operative is people coming together to meet a common need. Co-ops serve a range of sectors, including housing, food, worker, agriculture, service, financial, youth, aboriginal and community.
The classical definition of a co-operative as set out by the International Co-operative Alliance (ICA) 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.' The symbol of the co-operative movement is the Rainbow Flag.
A co-operative is actually a form of business enterprise that can be used as a corporate vehicle - much like a stock company - in all sectors of the economy. The co-operative model uses its unique form of business enterprise to accomplish social and policy ends. As such, co-operatives and the co-operative model are optimal for the delivery of service in the social economy.
Possessing a high degree of collective entrepreneurship, the co-op model is inherently ethical in its treatment of its members, employees, suppliers and the environment.
Co-operatives face similar problems to traditional investor-driven firms -concentration, globalization, organizational and technical change and the changing needs of clients. However, co-operatives also face particular challenges due to their specific nature as democratically controlled organizations providing equitable economic benefits to their members. To be successful, co-operatives must be competitive while maintaining their special nature as businesses that are user-driven, democratically owned and managed by their members.
Success is not only defined as profitability, but by other yardsticks as well - improved wellbeing of the members and the communities where they live. The key organizational distinction between a
co-operative and other corporate structures is democratic participation through 'one-member, one-vote.' In a traded company, shareholders are entitled to as many votes as they hold shares. Each member of a co-op is entitled to one vote regardless of level of investment. No single member can take control of a co-operative. Decisions are made by the majority, on the theory that people ultimately know what is best for them.
Co-ops are responsible to their own members. The members determine how the co-op will be run, elect the Board of Directors and allocate the profits of the co-operative among its
member-owners.
CO-OPS ARE DIVERSE
Think: housing co-ops; Think: Gay Lea Foods Co-operative; Think: TREC/Windshare (the co-op that placed the giant wind turbine on the grounds of Toronto's Exhibition Place); Think: child care co-ops; Think: Mountain Equipment Co-op; Think: Sleepless Goat Cafe; Think: AGRIS Co-operative
One thing they all have in common is that all
co-operatives are organized according to the Seven International Principles of Co-operation. This foundation on which all co-ops are built is reflected in the ICA's seven principles set down by thousands of co-operatives at its centenary.
CO-OPS ARE DURABLE
A 2008 report by the Quebec Ministry of Economic Development, Innovation and Export on the survival rate of co-operatives in Québec says that in 2008, the survival rate of co-operatives was 62% after five years and 44% after 10 years, which is consistent with a 1999 study. Read more of the 5-page report (translated into English by On Co-op) here.
- A new International Labour Organization (ILO) report provides compelling evidence that co-ops are more resilient than other business models in times of economic crisis.
Resilience of the Co-operative Business Model in Times of Crisis was authored by Lou Hammond Ketilson, Director of the Centre for the Study of Co-operatives at the University of Saskatchewan and Johnston Birchall, Professor of Social Policy at Sterling University in Scotland.
The report uses historical and current evidence from around the world to explain the sustainability of co-operatives and why this form of enterprise can withstand crisis. It also makes recommendations for ways in which the ILO can strengthen its efforts to promote co-operatives.
The report is available on the International Co-operative Alliance (ICA) website at www.ica.coop/activities/un/2009-coop-resilience.pdf
CLICK BELOW TO LEARN MORE ABOUT CO-OPS
Ontario co-operative snapshot ::Start here!
The Ontario co-operative experience
Organization of the co-operative sector
Types of co-operatives
More on co-operatives
The co-op business model compared with other models
Co-op statistics - Ontario, Canada and the World
Co-op FYIs (for your information)
What is Fair Trade?
Conflict Resolution within co-ops
A brief history of co-operatives
What is Corporate Social Responsibility (CSR?)