frequently asked questions about co-ops
1. What is a Co-Op?
A Co-Operative is an autonomous association of persons united voluntarily to meet their common economic, social, and cultural needs and aspirations through a jointly-owned and democratically controlled enterprise.” In other words, cooperatives are created by people who have a specific need and who are willing to work together to operate and organize a company that will meet that need.
2. How does a cooperative work?
A food co-op operates differently from a typical grocery store. For one thing, it's likely that the people who are members of the cooperative, or part-owners of the co-op, are also working at the co-op, stocking the shelves and ringing customers up at the register. Some cooperatives limit who can shop there or use their services. In some cases, only members of a cooperative can shop at it. Some cooperatives are open to all, but provide special incentives to members, such as a discount on products or services. Why are people who are members of a food co-op willing to volunteer or donate their time to work at the co-op? In part because of the community focus of a cooperative and the values behind co-ops. Among those values are:
- Democracy- Self-help- Self-responsibility- Equity- Solidarity
People who join cooperatives or who are among the founding members of a co-op often have the same shared values, meaning they are willing to work together towards a common goal. One of those goals is to create a better world by working together and by shifting the focus of the business to place people over profit to build a more inclusive economy.
3. Who owns and controls a Co-Op?
The people who benefit from the products or services of a cooperative business own the cooperative business. In the case of a grocery co-op, the people who shop at the store are owner-members. Just as the stockholders or shareholders of a business have a say in the ownership and operations of a company, the member-owners of a co-op have a say in how the cooperative operates. As equity and equality are among the founding principles of a cooperative, each member-owner of a co-op gets one vote. The opinion of one co-op member does not have more weight than the opinion of another co-op member. Cooperatives often elect a board of directors. The responsibilities of the co-op board include ensuring that the cooperative is working towards achieving its mission, setting up operational policies for the co-op and hiring any outside managers or other employees.
These are just a few of the common FAQs about cooperatives. For more information please visit the National Cooperative Business Association CLUSA International (NCBA CLUSA) at https://ncbaclussa.coop.