Principles of Cooperative Society
Co-operative principles are the guidelines and ground rules for all co- operative organizations. In the absence of these principles, no durable co-operative system is possible. The main principles of cooperation are as follows: Principles of Cooperative Society
1. Democracy:
The cooperative society works on the principle of democratic management. Every member of the society has equal rights, duties and responsibilities. Every member has only one vote. The main decisions of the society are made with the voting right of the members)
2.Cash Dealings:
As the society has limited resources, so it makes all its dealings in cash. It sells the goods and services for cash only. It promotes the habits of saving among the members and society is saved from losses of bad debts.
3. Voluntary Association:
(It is a voluntary association of persons where there is no restriction for its membership. Any person can become a member of society and can leave it at any time after due notice to the society)
4. Equality:
The capital of the society is generally divided into a number of shares of equal value. In this form of organization all members enjoy equal rights of ownership and consider equal voice in management of the cooperative enterprise
5. Honesty:
The honesty is necessary for the smooth running of the society. All the members of the society must be honest and fair. Its members must not be dishonest and selfish)
6.Self Services:
The cooperative society based on the principle that all the members of the society are owners as well as the employees and managers of the society. All the business activities of the society are mainly performed by its own members.
7. Distribution of Surplus:
The total profit of the society is not distributed A portion is spent for the welfare of its members and some amount is kept as reserve for strengthening the financial position of the society. The remaining surplus is divided among the members according to their investment. If it is consumer society, then the surplus is among the members according to the purchases made by them.
8. Economy:
All the activities of the society must be carried on economically and unnecessary expenditure and wastage are to be avoided
9. Spirit of Sacrifice:
The society must be based on the principle of all for each and each for all. There must be spirit of self help and mutual help amongst the members.
10. Welfare Objectives:
The primary objective of a cooperative society is to provide goods and services to the members at a very low price. The main motto of the society is to Dfa ho provide maximum services to its members instead to earn profit.
11.Mutual Confidence:
All the members of the society have trust and confidence on each other. They have to work like a team for the achievement of the objectives of the society.)
