'A co-operative society is a special type of business organization different from other forms of business organization.' In the light of the statement discuss the characteristics of co-operative society.150 words
Answers
Answer:
The Cooperative moment has been the outcome of the economic and social
imbalances caused by the Industrial Revolution, Cooperative Societies have
acquired significance in both capitalist countries as the US and Japan, as well
as in socialist countries.
The term co-operation is derived from the Latin word co-operari, where the
word co means ‘with’ and operari means ‘to work’. Thus, co-operation means
working together. It means those
who want to work together with
some common economic objective
can form a society which is termed
as “co-operative society”. It is a
voluntary association of persons
who work together to promote their
economic interest. It works on the
principle of self-help as well as
mutual help. Nobody joins a
cooperative society to earn profit.
People come forward as a group, pool their individual resources, utilize them in
the best possible manner, and derive some common benefit out of it.
“Cooperation is a form of organization wherein persons voluntarily associate
together as human beings, on a basis of equality, for the promotion of economic
interests of themselves”.
For example , if the students of a particular locality join hands to provide
books of different standard and thus, form a co-operative society. Now they
can buy books directly from the publishers and sell them to students at a cheaper
price. Because they buy books directly from the publishers and thereby the
middlemen’s profit is eliminated. Do you think it would have been possible on
the part of a single consumer to buy books directly from the publishers. Of
course, not, this could only be possible through mutual cooperation only
CHARACTERISTICS OF CO OPERATIVE ORGANISATION
- Voluntary Association :- The cooperative societies of voluntary Association of persons. Any person can join the cooperative society if he/ she has common interest. For example, any farmer can join the agricultural Society Or any consumer can join the consumer society. The members can leave the society whenever they desire so by giving a notice. There is no restriction on entry or exit of members. They can join your leave the Cooperative organisation of their own will and wish. The membership is open to all the members irrespective of their caste Creed and religion.
- Service Motive :- The main motive of cooperative society is to provide service to its members and not to earn profit. Earning profit is the secondary motive and not the main motive of cooperative organisation.
- Separate Legal Entity :- It is compulsory for a cooperative society to get itself registered under the Cooperative Societies Act. After registration, the Cooperative organisation gets a separate legal entity, which means the cooperative societies considered separate from its members. It can buy answer property in its own name and can enter into contract and its own name. The death, insolvency and in capacity of any member does not affect the existence of cooperative society.