What is a Co-op?

topic posted Tue, December 23, 2003 - 1:36 PM by  Roganda
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What is a Co-op?

A cooperative is a business controlled by the people who use it. It is a democratic organization whose earnings and assets belong to its members. By patronizing and becoming an active member of a co-op, you invest yourself with the power to shape that business. You control the politics and economics of what is truly your organization.

This localized member control allows co-ops to be as varied as the people they serve. Thus, there are different types of co-ops including: food co-ops, housing co-ops, arts and crafts co-ops, book co-ops, bakery co-ops, bike co-ops, farm co-ops, rural electric co-ops, financial co-ops (credit unions), and insurance co-ops. And each of these has a flavor of its own, reflective of the desires of its individual memberships. Despite the diversity in type and tradition of co-ops, most have several things in common, particularly the ideals and principles from which they emerge.



From www.umich.edu/~nasco/
posted by:
Roganda
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  • Re: What is a Co-op? [A great concept, but be mindful]

    Sat, February 25, 2006 - 10:11 PM
    You wrote: "A cooperative is a business controlled by the people who use it. It is a democratic organization whose earnings and assets belong to its members. By patronizing and becoming an active member of a co-op, you invest yourself with the power to shape that business."

    This statement is a partial truth, as not all co-ops are businesses (though hopefully most of them manage their finances and ownership issues in ways that are "business-like" ... i.e., coherent and efficient). For example, there are bicycle co-ops, car sharing co-ops, cooperative community gardens, food-buying co-ops--the list is long and inspiring--where members join to pool resources and mutual support. Yet there are no products or services sold, no profits to distribute or reimvest, nor other similar issues that would cause them to fall under the normal definitions of "business."

    Co-ops are all supposed to be democratic, for sure. However, on occasion, ego trips and power plays creep into the process--so there's always a danger of regressing into non-cooperative behaviors in spite of the official label (and identity) the group uses.

    And, unfortunately, some co-ops do bad things. For example, some of the huge agricultural co-ops do share resources, marketing, etc among their members--however they have terrible ecological practices that result in pollution, topsoil erosion, and other bad things.

    Having articulated these concerns, i want to make it clear that i'm a big fan and promoter of co-ops--a great form of organization. The message here is that to do it right, it's invaluable to have a solid sense of the history of the movement, to have social and environmental awareness and priorities, and open records and processes that encourage the constructive feedback to keep flowing in.

    Cooperatively,
    Geoph Kozeny (who wears various hats in the broad "cooperative" movement)
    Co-manager of Co-op Camp Sierra (in California ... now in it's 68th year)
    www.coopcamp.com

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