Principles and Values of Co-operation
What the exam tests here
The seven principles and the underlying values, their origin in the Rochdale Pioneers (1844) and the ICA's 1995 Manchester statement on co-operative identity. Expect questions on how each principle applies to a real society and on the tension between autonomy and government support.
The seven principles
- Voluntary and open membership - no discrimination by caste, religion, gender or politics; membership must genuinely be free.
- Democratic member control - one member, one vote; elected boards accountable to the general body.
- Member economic participation - capital contributed fairly, limited compensation on capital, surplus allocated to reserves, member benefit and common good.
- Autonomy and independence - societies entering agreements with government or other bodies must retain democratic control.
- Education, training and information - for members, office bearers, managers and the public.
- Co-operation among co-operatives - federating into district, State and national structures.
- Concern for community - sustainable development of the locality.
Values
The ethical base is self-help, self-responsibility, democracy, equality, equity and solidarity, supported by honesty, openness, social responsibility and caring for others.
Worked example
A primary agricultural credit society earns a surplus of ₹10 lakh. Applying principles 3 and 5, the general body may place a substantial part in the statutory reserve, declare a moderate dividend within the legal ceiling, and route a fixed share to the education fund and welfare activities. If the same society accepts a grant that gives the funding agency a veto over board decisions, principle 4 (autonomy) is breached - that is the point examiners want in a "comment on this situation" question.
Traps that cost marks
- Giving only six principles, or inventing "profit maximisation" as one.
- Confusing values (honesty, solidarity) with principles (education, autonomy).
- Treating autonomy as a rule that forbids any government help - the principle speaks of control, not aid.