Coop Membership: Membership and Operation

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Moreover, this article will explore the meaning and membership of co-op. Also, we will talk about how this kind of business works. In addition, there are 7 principles of Co-op that we will mention in the article. Therefore, to learn about cooperatives, read the full article without skipping. So, guys, there is so much to discuss in this blog post. Hence, we will not spend more time on the introduction. Let us begin with the information about cooperatives.

What is a Co-op?

Whenever we want to figure out what kind of a business a particular entity is, what do we do? We see who owns the business. Right? For example, when a single person is the owner and manager of a business, it is known as a sole proprietorship. Moreover, when two or more two people are owners of a business, it is known as a partnership. Now, what is a cooperative? When the owners of a business are the same as the customers of the business, it is called cooperative. Let us make it more clear. Every business has its users and customers, right? When these users become members of the business, it is called a co-op. This is what sets the co-op apart from other businesses. However, there are a few more features which are different from other entities.

Now that you guys know about co-op, we can discuss its ownership.

About Coop Membership

Individuals who make use of the products and services of a business, become members of co-op. Moreover, they become the co-owners of cooperative businesses. For example, if we talk about a grocery co-op, who do you think will own the business? The customers. People who come to buy the groceries become the owners of this business. Furthermore, we all know that businesses have shareholders and stockholders right? What do they do? They buy the companies’ shares. Moreover, they have a role of say in the operations of the business. Similarly, coop membership allows the members to have a say in the operations. However, there are certain differences between a shareholder and a coop membership holder. In other businesses, the power of say is based on how much share the shareholders hold. For example, one shareholder has a 30% share in the company. And one has 10%. The person having 30% will have more power to say than the one having 10%. Further, more shares, more power. Hence, more operational authorities.

However, the case is not the same in the co-op business. Every individual who holds a co-op membership gets equal authority. Moreover, one of the principles of a co-op is equality. Therefore, every member gets one vote of authority. Hence, no matter how powerful one member is, he will get the same authority over operations as the other. Further, the opinion of every member carries equal importance. Additionally, the members elect a board of directors. Since the members are the customers, therefore, the BODs will also be among the members. All the members work together towards a collective mission.

Now let us talk about the it works.

How Coop Membership Works?

The coop membership holders work together to operate the business. Moreover, they work towards the same goal. Furthermore, in some co-op businesses, the services are open to all. However, in some co-op businesses, the services and products are limited to the members. Also, in some cases, businesses provide products and services to all but they offer special benefits to their members. Co-op focuses on some values. These values are –

• Self -help
• Self- responsibility
• Democracy
• Equality
• Equity
• Solidarity

7 Co-op Principles

The co-op businesses focus on 7 principles. The working and operation of these businesses are based on these principles –

• Democratic member control
• Voluntary Membership
• Autonomy and Independence
• Member Economic Participation
• Cooperation among cooperatives
• Education, training, and information
• Concern for Community.

Final Words

A co-op business is one in which the customers become members. Moreover, coop membership gives a lot of benefits to the members. In this blog post, we have talked about what co-op means. However, the focus of this article is on cooperative membership. In addition, we have also mentioned the principles of co-op businesses. If you liked this blog, do not forget to share. Thank you.