Principles of Cooperative Society
The cooperative society is a different type of organization. It was originated from the word of co-operating which indicates assistance. Society means association or collection of a group of people. Low-income people of the society build and operated this business organization. Side by side they maintain some principle by which it operates successfully. These principles are given below:
Unity: Cooperative society is built-up based on the principle “Unity is strength”. That means poor and same minded people build it as well as each person should try collectively for the betterment of the organization, society, and the nation.
Honesty: It is indispensable to the success of the cooperative society to prove the honesty at all levels as well as each member. In the absence of honesty, it will be disseminated and sometimes burden for the society.
Stability: Stability is essential for the cooperative society and the betterment of the members and society. More stability spreads its boundary gradually. After a period of time, it can reach its ‘ultimate goals.
Equality: Cooperative society inspired by the equality principle in our society. Each member equal though it has different categories of persons from the different family. It’s the factor to exist the organization.
Cooperation: It is crucial to show cooperation, helpfulness, support, and sympathy to each other. It is a careful message to provide cooperation and sympathy to all members equally.
Trust and Confidence: Trust and confidence are also essential for the betterment of the members and society also. Cooperative society will be strong whenever trust and confidence will be available to all the members.
Distribution of Profit: Profit maximization is the main objective of the cooperative society. That’s why considering the financial benefit and prosperity of the members, the total amount of profit do not distribution at a time.
Peace and discipline: Maintaining peace and discipline among the members is essential for improving the condition of members and cooperative society. Enmity and rough competition are always damaged by the members and origination. So the cooperative society should maintain peace and discipline in all area of operations.
Democracy: Cooperative society always respects the principle of democracy. Each member can express his own opinion to elect the managing committee. However, it follows the principles of democracy in the decision making process.
Equal right of votes: It is the sign of equality in the cooperative society. Each member can apply same right to vote whether the amount of share, actually different. This principle must consider in the decision-making process.
Voluntary association: It is a voluntary association. That’s why it gives the honors of each member. One can withdraw capital as well as transfer the share getting permission from managing director.
Impartiality: It is very necessary to free from partial as well as political control in cooperative society. It is also harmful to show partiality in the operations of the organization. Impartial judgment, cooperation, as well as affection are the main principle of the organization.
After considering above mentioned principles we can comment that it is vital to follow, these important principles. All principles must emphasize in the cooperative society because these are the pillars of the organization’s success.