A cooperative is an economic organization owned and operated by individuals for the common good.
Cooperatives base their activities on the principle of the people's economic movement based on the principle of kinship.
The Cooperative Movement began in the mid-18th and early 19th centuries in England. Charles Fourier (1772-1837) founded Falansteires, Louis Blanc (1811-1882) proposed the formation of Atelier Sosiaux (Social Atelier), Saint Simon (1760-1825) argued that social problems could be solved if society was organized into "Productive Associations". The cooperative was founded in the city of Rochdale, England in 1844 under the name Rochdale Equitable Pioneer's Cooperative Society. The principles of the Rochdale cooperative were later standardized by the I.C.A and presented at the I.C.A congress in Paris in 1937.
Around 1848, there was a pioneer named F. W. Raiffeisen, mayor of Flammersfield. He recommended that the peasants unite in savings and loan associations. In 1849, H. Schulze, from the city of Delitzchsh, pioneered the establishment of a savings and loan cooperative operating in urban areas. Schulze . Savings and Loan Cooperative working manual
The cooperative principle is a system of abstract ideas that are the guidelines for building effective and long-lasting cooperatives. The latest cooperative principles developed by the International Cooperative Alliance are
Membership is open and voluntary
Member participation in the economy,
Freedom and autonomy,
Development of education, training, and information. In Indonesia itself, Law no. 25 of 1992 concerning Cooperatives. The cooperative principle according to Law no. 25 of 1992 are:
Membership is voluntary and open
Management is carried out in a democratic manner
The distribution of SHU is carried out fairly according to the business services of each member
Limited remuneration for capital
Cooperation between cooperatives Cooperative principles based on Law no. 17 Th. 2012, namely:
Capital consists of principal savings and cooperative capital letters (SMK)
Types of cooperatives
Workers' cooperatives or producers' cooperatives are cooperatives that are owned and democratically controlled by the "workers-owners". There are no outside owners in a "pure" workers' cooperative, only the workers have a share (shares) of ownership of the business. Even in the form of a hybrid, the consumer, community member or capitalist investor also has a share (share) of ownership. In practice, owner-worker control may be exercised through individual, collective, or majority ownership; or the exercise of individual, collective, or majority suffrage (through the one member one vote principle). However, workers' cooperatives have the characteristics of the majority of their workforce having ownership shares, and the majority of ownership shares being owned by workers. Membership is not always mandatory for employees, but in general only employees can become members either directly (as shareholders) or indirectly through membership of the trust that owns the company.
The impact of political ideology in practice limits the development of cooperatives in various countries. In India, there is a form of workers' cooperative which requires mandatory membership for all its workers and mandatory work for all members. This form is found in the Indian Coffee House. In places like the United Kingdom, common ownership (indivisible collective ownership) was popular in the 1970s. Cooperative Societies only became legal in Britain after the passage of the Stanley's Act in 1852. In 1865 there were 651 registered associations with a total membership of 200,000. Today, there are over 400 workers' cooperatives in Britain, Suma (Wholefoods) being the largest workers' cooperative there with om