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coop

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by

Laura Buttenbaum

on 2 October 2014

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Transcript of coop

What do you think of when you hear the word...
A group of individuals, businesses or communities that...
Where did the idea of Cooperative ownership come from?
coop
Basic Forms of Business Ownership
Privately Owned
Exist to make profit for owner(s)
Sole Proprietorship/Partnership
Investor-Owned Corporation
Number of shares = number of votes.


Non-Profit
Exist to serve social needs
Do not exist to make a profit
Funded through private donations, grants or government funding
Cooperative
Exist to meet the needs of Members/Owners
One Member = One Share = One Vote
Profits distributed to Members via
discount or dividend
What is a co-op?
is
equally owned
by the people who use its goods and services (member-owners)
member-owners have an
equal say
in the business decisions of the cooperative
operate with a
Triple Bottom Line
are
values-based
business
This ancient shelter, reconstructed here, provided protection
for an early human family or social group.
Early Co-ops in the USA
First Cooperative in the US founded by Ben Franklin
Depression Era Cooperatives
Rural Cooperative Development
Cooperation Among Early Humans
The early survival of the human species depended on cooperation
Image Credit: Courtesy of Karen Carr Studio via Smithsonian National Museum of Natural History
A Cooperative Species:
Human Reciprocity and Its Evolution
by Samuel Bowles & Herbert Gintis
For an interesting read about cooperation throughout human evolution, try
1800
1750
First Cooperative businesses formed in response to social injustice and treatment of workers
1850
Rochdale Society of Equitable Pioneers established in 1844. Developed the Rochdale Principles, which became the basis for the modern coop movement and is still practiced today.
First documented consumer coop, founded 1769
Invention of credit unions in Germany, 1852
William King, 1786 - 1865
1900
Industrial Revolution 1760 ~ 1840
Robert Owen, 1771 - 1858
Intellectual Father of Cooperative Movement
By 1920, the U.S. had 2,600 consumer co-ops
Benjamin Franklin founded
Philadelphia Contributorship for the Insurance of Homes from Loss of Fire, 1752
Co-ops gained popularity in the U.S. in the early 1900s; this wave called "the Rochdale plan"
Another wave of cooperative development in U.S. triggered by Great Depression
"Old Wave" coops
"New wave" in '60s and '70s. Today's "natural food" industry is derived from this particular coop movement.
First U.S. farmer cooperative est. 1810
Felt the best way for workers to get out of poverty is to do it themselves: grow food, make clothes and be "self-governing"
First housing coop - NYC 1927
Urged small local cooperative shops to tackle poverty & distress
Concentrated on FOOD: most was heavily adulterated with cheap additives to bulk it out - a direct & indirect threat to the health of the poor
Applied Owen's ideas to LOCAL economic activity
Without labor, capital is nothing -- working poor need to cooperate to gain enough capital to win control over their own labor to get out of poverty
Published
The Co-operator,
1828
Attempted to create two cooperative communities in which people would live and work together with these ideals
Implemented ideas in Scottish cotton mills where he worked & where the first coop store opened
Identified underlying values of cooperation as a means of organizing economic activity
Equally Owned
Equal Say
Values-Based
not taxable
income for the coop
refundable
if member leaves the coop
either
fixed
'fair share' or perpetual
equity plan
Member-Owner Investment
provides co-op with an adequate
capital base
creates a sense of
ownership
(
'Equity Payments', 'Share Investments', 'Captial Contributions')
equity requirement is based on a member’s “
fair share

capital needs are
divided

equally
among ALL members
ONE MEMBER = ONE VOTE
Vote for changes in
BYLAWS

to keep the co-op current
with the law
Elect Board of Directors in
annual elections
(
COUNCIL
members)
Vote in member
REFERENDA
required for major
organizational changes
Self Help
Self Responsibility
Democracy
Equality
Equity
Solidarity
Cooperative Values
Ethical Values
Honesty
Openness
Social Responsibility
Caring for Others
People Planet Profit
Triple Bottom Line
GreenStar History
Types of Co-ops
Worker/Producer
Consumer
Purchasing/Shared Services
Member - Ownership
Governance
Local Co-ops
Genex Co-Op Inc (Property Management Company)
Ithaca Agway
CoLab (Computer Programming)
Dairy One Cooperative Inc. (Information Technology)


Ithaca Farmers' Market
The Holiday Spirit Store
Community Nursery School CNS and The Nest (Preschool & toddler programs)
East Ithaca Preschool
The Lantern School
Northern Lights (Home Schooling Co-op)

GreenStar Cooperative Market (Natural Foods)
Buffalo Street Books (Bookstore)
Watermargin Cooperative (Housing)
Stewart Little Co-op (Housing)
Von Cramm Co-op (Housing)
Elm Street Co-op (Housing)
Aurora Dwelling Circle* (Housing) *Forming
White Hawk (Housing)
Eco Village at Ithaca (Housing)
12 Tribes Community in Ithaca (Housing)
CONSUMER
CREDIT UNIONS
Alternatives Federal Credit Union
CFCU Commuity Credit Union
Tompkins Employees Federal Credit Union
WORKER/PRODUCER
HandWork (Artists Collective)
State of the Art Gallery
Housing
Owned & managed by its workers to create & maintain sustainable jobs, generate wealth, improve the quality of life of the worker-members, dignify human work, allow workers’ democratic self-management and promote community and local development.
Owned by the people who buy the goods or use the services of the cooperative. The most common type of coop, consumer coops are organized by individuals who seek to purchase goods and services.
PEOPLE
Livable
Equitable
Sustainable
Viable
PLANET
PROFIT
SHARED SERVICES
Educational
Enironmental Issues:
Air quality
Water quality
Energy usage
Waste produced
Biodiversity
Fenwick Weaver's Society
Worker Coop Details:
The free and voluntary membership of their members, in order to contribute with their personal work and economic resources, is conditioned by the existence of workplaces.
Work is carried out by the members. The majority of the workers in a worker cooperative enterprise are members and vice versa.
Worker-members’ relation with their cooperative is different from that of conventional wage-based labor and of autonomous individual work.
Internal regulation is formally defined & democratically agreed upon and accepted by worker-members.
Autonomous and independent, before the State and third parties, in labor relations and management, and in the usage and management of the means of production
Policy 1.2
V. Membership
VI. Membership Rights & Authority
Policy 2.6
Standards of Conduct
HYBRID
Policy Governance
Ends Statements
SAB (Staff Advisory Board)
Council
Multi-stakeholder hybrids seek to balance sometimes conflicting needs between stakeholders. For example consumers’ desire for affordable products and producers’ desire for higher prices for their goods. In many cases, this is tied to members’ dual roles as producers and consumers, most often in agricultural co-ops, but not always.
Typically owned by small, independent businesses, municipalities or other like organizations that band together to enhance their purchasing power. Members of these cooperatives have found that they can adapt quickly to changing economic conditions rather than become victims of them - they can lower their operating costs by pooling purchasing power for goods and services
1850
1850
1900
1950
1
Benefits
Social
Enjoy GreenStar social events &
community projects
Teach or attend GreenStar classes
Democratic
Council: Run & Elect
Serve on a Council Committee
Initiate & Vote on Referenda
Vote on By-Laws changes
Economic
Member-Owner Discount
UPick 10 Benefit
Member Labor Program
Responsibilities
Capital Contribution, Fixed Fair Share
Vote
Elect Council Members
Adopt, amend, repeal or replace Bylaws
Approve purchase or sale of real estate
Establish debt ceiling
Rights &
Equity
At GreenStar
Full Equity = $90.00
(unchanged since 1990)
Two payment options:
One-time $90 Full Equity payment
OR
Annual payment plan
*
until Full Equity is reached
Regular Member:

$9 (+$1 fee) per year
Senior, Differently Abled, Low income Member:

$4 (+$1 fee) per year
*Member-Owners receive all benefits of GreenStar
Membership with first equity payment
Investment
Ithaca Agway & True Value
Best Western
Social Justice:
Labor practices
Community impacts
Human Rights
Product responsibility
Economic Prosperity:
Sales, return on investment
Job creation
Monetary flow
Taxes paid
Full transcript