What is a co-op?
Many people are familiar with the term “co-op,” without having a concrete idea of what it means. A co-op, an abbreviation for cooperative, is an organization that takes the idea of people working together and puts it into a business structure.
Cooperatives are generally initiated to provide services to their members that are otherwise unavailable. In the case of Roanoke Natural Foods Co-op, the cooperative was formed in the early 1970s to bring whole foods to the Roanoke Valley at a time when such foods were largely inaccessible in our area.
The cooperative business structure permits people to provide for themselves. The benefits of this are many, and the positive impact of cooperatives in their communities is limited only by the organization's wherewithal.
Because member-owners control their cooperatives through an elected Board of Directors and a management team, at Roanoke Natural Foods Co-op there is no distant “corporate headquarters” calling all the shots.
Further, the cooperative business structure returns profits to all member-owners, who own equal amounts of shares. Most corporations benefit the few, those investors who profit (and vote) in proportion to the number of shares they own in the business. In a co-op, the rule of thumb is “one owner, one vote.”
There are many types of cooperative businesses –such as food co-ops like ours, farming co-ops, electric co-ops, housing co-ops, and credit unions. National Cooperative Business Association (NCBA) estimates that 730 million people worldwide are members of cooperatives.
Cooperative Principles
Co-ops follow an internationally recognized structure, adhering to cooperative principles.
The first modern retail cooperative opened in England in 1844, and since that time the principles and values have been modified only very slightly to remain socially relevant. This means that an electric cooperative in Maryland adheres to the same basic tenets as a farming cooperative in the United Kingdom.
The following seven principles were adopted in 1995 by the International Cooperative Alliance (ICA). The explanations of these principles, and the subsequent list of values, are used by permission from the National Cooperative Business Association.
1. Voluntary and Open Membership—
Cooperatives are voluntary organizations, open to all persons able to use their services and willing to accept the responsibilities of membership, without gender, social, racial, political or religious discrimination.
2. Democratic Member Control —
Cooperatives are democratic organizations controlled by their members, who actively participate in setting their policies and making decisions. Men and women serving as elected representatives are accountable to the membership. In primary cooperatives, members have equal voting rights (one member, one vote) and cooperatives at other levels are organized in a democratic manner.
3. Member Economic Participation —
Members contribute equitably to, and democratically control, the capital of their cooperative. At least part of that capital is usually the common property of the cooperative. They usually receive limited compensation, if any, on capital subscribed as a condition of membership. Members allocate surpluses for any or all of the following purposes: developing the cooperative, possibly by setting up reserves, part of which at least would be indivisible; benefiting members in proportion to their transactions with the cooperative; and supporting other activities approved by the membership.How that looks here: Our physical assets are controlled by the cooperative as a whole. The future reincorporation of the Co-op will allow the members to contribute equitably to the cooperative by purchasing shares. They will continue to have democratic control over the Co-op’s common property.
4. Autonomy and Independence —
Cooperatives are autonomous, self-help organizations controlled by their members. If they enter into agreements with other organizations, including governments, or raise capital from external sources, they do so on terms that ensure democratic control by their members and maintain their cooperative autonomy.
5. Education, Training and Information —
Cooperatives provide education and training for their members, elected representatives, managers and employees so they can contribute effectively to the development of their cooperatives. They inform the general public — particularly young people and opinion leaders — about the nature and benefits of cooperation.
6. Cooperation among Cooperatives —
Cooperatives serve their members most effectively and strengthen the cooperative movement by working together through local, national, regional and international structures.
7. Concern for Community —
While focusing on member needs, cooperatives work for the sustainable development of their communities through policies accepted by their members.How that looks here: The Co-op’s mission statement, crafted by the Board of Directors and based on input from our member-owners, holds the concept of sustainable community development in a prominent position. We sell local natural and organic products, thereby supporting our local economy. We support local organic farmers, thereby encouraging protection of our natural resources and security of our local food supply. We participate in fundraisers and support non-profit groups in our area. A few examples of groups who received Co-op support in 2007 include:
• Blue Ridge Public Television
• Bradley Free Clinic
• Community School
• Eli’s Pies
• Explore Park
• Five Penny Farms
• Full Circle Farms
• Glenvar Elementary PTA
• Grandin Court Elementary
• Grandin Theatre Foundation
• Lions Club
• Master Gardeners
• Mill Mountain Theatre
• Moon Indigo Farms
• Patrick Henry High School
• Rail Solutions
• Roanoke Valley SPCA
• Roanoke Wildlife Rescue
• WVTF Public Radio
• Wasena Elementary
• Waterbear Mountain Farms
• YMCA
The cooperative principles are based on the values of:
self-help
self-responsibility
democracy
equality
equity
solidarity
In the tradition of their founders, cooperative members believe in the ethical values of honesty, openness, social responsibility and caring for others.
For more information, visit www.ncga.coop, www.ncba.coop, and www.coop.org.
