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zeuli,Kimberly principles and practices
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From #53, July-August 1994
Cooperative Principles Ten an! "o#
$Part 1%
2.By David Thompson
The co-op occupied the Toad Lane premises for twenty-three years. In
1867, the co-op moved down the lane into a fourfloor department
store which the members had built to house their thrivin business.
The little store became a private shop. !ut as the power of
cooperation rew, people comin to "ochdale from all over the world
would in#uire about the store which had iven birth to modern
cooperation. $hen they were shown %1 Toad Lane, they saw not the
&!irthplace of 'ooperation,& but a shoddy little shop sellin canaries
and bird seed. (t the 1)1* 'ooperative 'onress it was therefore
resolved to raise subscriptions to buy the buildin. +nfortunately,
$orld $ar I impeded the campain.
!y the 1),-s, enouh money had been raised to buy the shop. The
'ooperative +nion and the 'ooperative $holesale .ociety drew up
plans to restore the buildin to its oriinal appearance, and the shop
was officially opened as a museum in 1)%1. !etween 1)7* and 1)78,
the museum was closed to allow for e/tensive renovations and
structural chanes. The buildin is now in e/cellent condition. The
renovated buildin and the Toad Lane 'onservation (rea was
dedicated by 0rincess (le/andra on 1% 1ay 1)81. (lon with the
buildin ne/t door, the short street is a well maintained attraction and
one of the most visited sites in "ochdale2s history.
The front room of the first floor of the museum depicts the simplicity
of the oriinal store with its meaer supply of the shop2s first few
products3 suar, butter, flour, oatmeal, and tallow candles. 4earby are
the benches where members waited to be served, the scale where
their purchases were weihed, and the des5 where their purchases
were entered into the boo5s of the cooperative. The rear room of the
first floor depicts the history of the "ochdale 0ioneers and the early
leaders of the cooperative movement.
6riinally a school and a chapel, which the co-op too5 over in 18*8,
were located upstairs. The co-op operated a library and classroom on
the first floor, and a drapery and shoe repair service on the third floor.
$hen the buildin was remodeled e/tensively in the 1)7-s, it was
decided that the museum would be structurally safer if the third floor
was removed. (s a result, the second floor of the museum is a lofty
and well lit meetin and e/hibition hall. (round the walls han many
historical banners and photoraphs.
"ochdale is the mecca of any co-op pilrim. To open the door and
enter into the tiny shop where the modern cooperative movement
bean is a never to be forotten e/perience for any co-op activist.
The oriinal "ochdale 7#uitable 0ioneers .ociety mered with the
6ldham 'ooperative .ociety in 1)76 and then was absorbed into the
4orwest 'ooperative .ociety in 1)8,. ( further merer made the co-
op part of +nited 'ooperatives. In 1)8), the name of the "ochdale
7#uitable 0ioneers .ociety was re-reistered to revive the society as a
supportive and promotional orani8ation on behalf of the 0ioneers
1useum in "ochdale.
( 19- year anniversary is a special moment to both
reflect upon the past and to plan for the future. I
commend the (merican cooperative oranisations for
havin the foresiht to plan a &'ooperative 7conomic
.ummit.& 6ne hundred million cooperators wor5in
toether on ideas and actions will have a powerful
impact on your nation.
The ties between the co-operators of !ritain and
(merica have always been stron. !en:amin ;ran5lin
too5 the idea of mutual fire insurance to (merica and
thus bean cooperation in 179,. 1any people from
"ochdale became fervent cooperative . missionaries in
(merica. ;rom our cooperators you have learned about
consumer cooperation, mutual insurance and buildin
societies. ;rom our cooperators we have learned about
credit unions and aricultural cooperation. .harin
ourstrenths has bettered the economic and social life of
the citi8ens of both countries. <our 'ooperative
7conomic .ummit can be a place to share your
strenths.
6ne of the lessons learned from the "ochdale 0ioneers
is that &helpin people help themselves& is a stron and
most endurin form of economic development. The
world has certainly chaned a reat deal in 19- years,
but the need for cooperation amon people remains. I
am lad to see that you are focused on opportunities for
cooperatives.
=urin 1))*, "ochdale will welcome many co-operators
to our town to participate in the anniversary celebrations
of the 0ioneers. 6n behalf of "ochdale, I2d li5e to e/tend
a warm Lancashire welcome in particular to (merican
co-operators. I am #uite sure the "ochdale 0ioneers
would :oin me in wishin (merican cooperators all ood
fortune for a successful and forward loo5in 'o-op <ear.
Councillor Arnold Bagnall
His Worship the Mayor of Rochdale
Co-op Principles Ten an! "o#
$Part &%
4ineteen ninety-four mar5s the 19-th (nniversary of the foundin of
the modern cooperative movement in "ochdale, 7nland. ;rom that
small society there developed a set of practices and procedures which,
formulated later as the "ochdale 0rinciples, became uideposts to
cooperatives around the world.
>owever, the principles of cooperation have been modified over time
and are due to be modified aain in 1))9 in 1anchester, when the
International 'ooperative (lliance holds its 1--th (nniversary. Li5e
most principles, especially those connected with economic activity, the
chanes in the post world war era have tremendously impacted the
world we live in. >owever, each time the 'ooperative 0rinciples are
re-framed, the important elements created in "ochdale are carried
forward.
The "ochdale 0ioneers adopted a series of laws, ob:ectives, practices
and procedures that assured their economic success. >owever, they
never actually adopted as a roup the specific set of principles 5nown
historically as the "ochdale 0rinciples. (lmost every ma:or writer of
the history of the "ochdale 0ioneers has his or her own list of what
the principles were, and each list is different both in content and
number.
The "ochdale 0rinciples were developed later, in the 186-s, as a
means of consolidatin the 5ey elements of the success of the
0ioneers in one set of easily understandable principles. It is important
to understand therefore that the oriins of the cooperative principles
are not as clear as one would li5e. 4or is their development. The
proress of the principles can be better understood within the
historical framewor5 of the times.
6n 6ctober ,*, 18**, the foundin documents of the 7#uitable
.ociety of "ochdale 0ioneers were accepted by the overnment
"eistrar. Thus bean the formulation of the cooperative principles.
1ost of the 0ioneers were supporters of "obert 6wen and 6wenite
causes as well as 'hartism. !oth these movements spo5e of the
development of another type of society, one with the oal of buildin
self-help utopian communities separate from e/istin society. 6n the
other hand, they reconi8ed that e/istin society needed to be
reformed, and reat emphasis was placed on the development of
employment, housin, democracy and e#uality.
The first statutes or oals as we would call them today were closely
patterned after an 6wenite society3
Laws and Objectives
of the Rochdale Society of Eqitable !ionee"s
Rochdale #$%%
The ob:ects and plans of this .ociety are to form arranements for the
pecuniary benefit and the improvement of the social and domestic
conditions of its members, by raisin a sufficient amount of capital in
shares of one pound each, to brin into operation the followin plans
and arranements.
The establishment of a store for the sale of provisions and clothin
etc.
The buildin, purchasin, or erectin of a number of houses, in which
those members desirin to assist each other in improvin their
domestic and social condition may reside.
To commence, the manufacture of such articles as the society may
determine upon, for the employment of such members as may be
without employment, or who may be badly remunerated.
That as soon as practicable, this society shall proceed to arrane the
powers of production, distribution, education, and overnment, or in
other words to establish a selfsupportin home-colony of united
interests, or assist other societies in establishin such colonies.
That for the promotion of sobriety a Temperance >otel be opened in
one of the society2s houses, as soon as convenient.
In 18**,18*9, and 189* the .ociety published a series of &practices,&
which were the basis for what became 5nown decades later as the
"ochdale 0rinciples3
1. 6pen membership.
,. =emocratic control ?one man, one vote@.
%. =istribution of surplus in proportion to trade.
*. 0ayment of limited interest on capital.
9. 0olitical and reliious neutrality.
6. 'ash tradin.
7. 0romotion of education
Let2s loo5 at the bac5round to these principles.
#. Open membe"ship.
( ma:or difference between the co-op and other orani8ations. (lmost
every form of orani8ation at the time was created to discriminate to
ensure that its benefits went to its members who were of the same
class, ender, masonic order or reliion. The co-op allowed for
everyone to:oin and for the newest member to pay the same to enter
as the oldest member.
2. Democ"atic cont"ol &one man' one vote(.
This one did not appear until the rules of 18*9, althouh it is clear the
co-op operated this way in its formation years. (lthouh the principle
was written this way ?one man, one vote@, a section of the rules of
18** tal5s of the resination of members in lanuae that clearly
anticipates both men and women leavin, therefore their:oinin. The
important element here is that to a person the 0ioneers were invested
in democracy, especially throuh their involvement with 'hartism, a
popular movement which fouht for one man one vote. The co-op,
one of the first orani8ations to allow women to own property, went
one step further and made it clear that there would be e#uality of
opportunity for men and women to own shares in the store. >owever,
they still spo5e of one man, one vote.
). Dist"ibtion of s"pls in p"opo"tion to t"ade.
'harles >owarth, one of the oriinal 0ioneers is credited with
developin this important principle. It is #uite possible that >owarth
borrowed the idea from (le/ander 'ampbell, a .cottish 6wenite who
had visited "ochdale. >owarth, the Thomas Aefferson of the 0ioneers,
was loo5in for a way to reward loyalty and pay bac5 the ma:ority of
profits to the consumer members. 0rofits to the user owner set co-ops
apart from firms which pay profits to the owners of capital. The Bdivi2
became the hallmar5 of the !ritish cooperative movement and was
copied all over the world. $hat the co-op needs is the patronae of its
members.
%. !ayment of limited inte"est on capital.
This principle is derived from the wor5 of "obert 6wen. >e had
developed it in relationship to his model mill at 4ew Lanar5 in
.cotland. 6wen had set a fi/ed and limited interest on capital he
borrowed to finance his factory. !y payin a fair rather than
speculative return, 6wen was able to use the additional profits to
provide better waes and wor5in conditions to his wor5ers. The
intent of the 0ioneers was to ade#uately reward capital but to use the
ma:ority of profits to reward usae. The other distinuishin element
was that shares in the co-op were maintained at par value to which
interest would be paid, rather than the shares bein decided in the
mar5et and bein enerally related to profitability. The shares had a
purpose as capital to be obtained responsibly, e#uitably and reularly
from the members. The shares were not a speculation for profit but
were necessary for the co-op to operate effectively on behalf of the
members. The emphasis on the members providin their own capital
was to ensure their economic freedom from the money lenders of the
day.
*. !olitical and "eli+ios net"ality.
This principle was added because of 6wen, who held a wide rane of
views on society which were very proressive for their day. ( number
of them were repunant to many reliious roups. !ecause many of
the earlier co-ops were rearded as the refue of 6wenites they were
boycotted. (s a result, the "ochdale 'o-op adopted this principle to
ensure that the society did not become a lihtnin rod to the issues of
the day which had no relationship to the co-op store.
,. -ash t"adin+.
The 0ioneers were well aware of the mista5es made by the earlier co-
op in "ochdale which had occupied and failed at 19 Toad Lane a few
years earlier. 6ne of the ma:or causes of failure had been e/tendin
credit to members as the other shops did. 6n the other hand the
other shops then had to raise their prices to cover these losses. The
co-op felt stronly that it would serve its members better if it
educated them to budet their waes and buy at the co-op.
.. !"omotion of edcation
This principle appeared in 189* after the "eistrar allowed co-ops to
set aside monies for education. 0rior to that the co-op had illeally set
aside money for education. Initially the 0ioneers focused on educatin
their members throuh providin courses, adult classes, lectures,
newspapers and a library. 7ducation was then a passport to prosperity
and economic freedom. Throuh their education prorams the
0ioneers were to ive their members the tools to et better :obs and
ain newer s5ills. Later, as public education filled their role, the co-ops
concerned themselves much more with the role of cooperative
education.
In the 186-s the "ochdale co-op issued in its annual almanac a list of
its rules of conduct. This list was the precursor to the formal "ochdale
0rinciples. 6f the nine items listed, five ended up in the "ochdale
0rinciples3 open membershipC one member, one voteC limited interest
on capitalC cash tradinC and education.
Two additional principles which are important to consumer
cooperatives were left off3
That only the purest provisions procurable should be supplied to
membersC and
That full weiht and measure should be iven.
Two other almanac items relatin to manaement and financial
reportin were operational in nature and were also not included.
=istinuishin between principles and practices has never been easy.
(s the "ochdale 0rinciples too5 shape it became evident that they
more closely resembled the principles of consumer cooperation. $hile
most co-ops in !ritain were consumer owned, many throuhout
7urope and the rest of the world were not. 7fforts were then beun to
re-shape the principles to meet the need of an everwidenin use of
the cooperative model. The I'( efforts to loo5 seriously at this
problem in the l)%-2s were put on hold by the outbrea5 of $orld $ar
II. In 1)*9 in neutral .wit8erland the effort bean aain. (fter a
thorouh review and with the hard wor5 of a special committee the
1)66 I'( 'onress in !ournemouth, 7nland met and adopted the
followin wordins3
1. 1embership of a cooperative society should be voluntary and
available without artificial or any social, political, racial or reliious
discrimination to all persons who can ma5e use of its services and are
willin to accept the responsibilities of membership.
,. 'ooperative societies are democratic orani8ations. Their affairs
should be administered by persons elected or appointed in a manner
areed by the members and accountable to them. 1embers of
primary societies should en:oy e#ual nhts of votin ?one member,
one vote@ and participation in decisions affectin their societies. In
other than primary societies the administration should be conducted
on a democratic basis in a suitable form.
%. .hare capital should only receive a strictly limited rate of interest, if
any.
*. The economic results arisin out of the operations of a society
belon to the members of that society and should be distributed in
such a manner as would avoid one member ainin at the e/pense of
others. This may be done by decision of the members as follows3 a@
by provision for development of the business of the corporation, b@ by
provision of the common servicesC or c@ by the distribution amon the
members in proportion to their transactions with the society.
9. (ll cooperatives should ma5e provision for the education of their
members, officers, and employees and of the eneral public in the
principles and techni#ues of the cooperation, both economic and
democratic.
6. (ll cooperative orani8ations, in order to best serve the interest of
their members and their communities, should actively cooperate in
every practical way with other cooperative at local, national and
international levels.
The ne/t step in the development of the principles is now ta5in
place. ;or the past four years the I'( has been conductin a
worldwide study of the practicality of the principles. $hen the I'(
'onress athers in 1anchester, 7nland in 1))9 to celebrate its
1--th anniversary, the I'( will offer the deleates a revised set of
cooperative principles. Loo5 for recommended chanes in the areas of
democracy, limited interest on capital, and education. (nticipate
references to community, the environment and the role of wor5ers,
and possibly a mission statement with a list of ob:ectives.
The drafters of the revised principles are well aware of the social and
economic chanes occurrin throuhout the lobe and that there are
members of cooperatives and credit unions in almost every corner of
the lobe. There are reater numbers than ever before of people
usin a wider rane of cooperatives to meet their needs. >ow can one
set of principles provide a home for that many cooperativesD $ith
their sense of the history and tradition of the "ochdale 0ioneers and
their belief in the potential and future of cooperatives, the authors will
undoubtedly create a set of principles that will continue to uide us
for the future.

!orn in the same county as "ochdale, 7nland, =avid Thompson has
been actively involved in the (merican cooperative movement for the
past twenty years. >is new boo5 on "ochdale, $eavers of =reams3
6riins of the 'ooperative 1ovement, is about to be published by the
+' 'enter for 'ooperatives.
3)COOPERAT!E OR"A#$ATO# PA%MOW&' (A#
cooperative organi'ations Businesses which are owned and run jointly by their
employees and customers. Their purpose is to ensure fair working and trading
conditions rather than the maximization of profit, in marked contrast to capitalist
enterprise. They tend to be particularly appealing in areas undergoing rapid
social and economic change where low wages, job insecurity, and low consumer
protection are the norm. They developed in England from the late eighteenth and
early nineteenth centuries as a! consumer cooperatives to provide cheap food,
b! producers" cooperatives to provide work in cases of strikes, and c! utopian
cooperatives where alternatives to capitalism were tried out, most famously
#obert $wen"s #ochdale %ioneers of &'((.
)n &'*( a federation of cooperative societies, the +o,operative -holesale
.ociety +-.!, was formed in Britain, which developed as a manufacturer and
wholesale trader, opening factories and developing its own farms. The
cooperative movement has also exerted some political and economic influence
through the /abour %arty and the trade union movement. )n the 0.1 the first
cooperatives were mainly agrarian, established in the early nineteenth century to
open up the prairies. )n +anada, they became influential in rural areas from the
&'*2s, when over &,322 cooperatives were set up. The +o,operative 0nion of
+anada was formed in &424.
5uring the twentieth century the breakup of private estates in both +ommunist
and capitalist societies through land reforms and split inheritance has resulted in
the extensive development of farming cooperatives which provide the individual
farmer with the expensive technology and know,how to run his6her small plot of
land efficiently and to gain competitive prices for his6her products. )n addition, as
a result of rapid urbanization during the nineteenth and twentieth centuries,
housing cooperatives developed which remain an important provider of
affordable housing in most industrially developed countries. 7inally, credit
cooperatives and credit unions have developed in many countries to provide
small investors, other types of cooperatives, and trade unions with their financial
wherewithal. These have developed into large institutions in some European
countries, while in the 0.1 there exist over 33,222 credit unions.
Cite tis article
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http3EEco.5ent.eduElibE!ernardi'oop(rticle.pdf
-manain the cooperative difference
4)Consider the Collective: More than business as usual
by John Emerson
Some of our most venerable institutions started out as collectives. Before they
were Push Pin Studios they were a networ! of freelancers in a shared studio
s"ace. Before they were Penta#ram they were a "artnershi" of three. $n its
twenty years the %rench studio &ra"us #rew to encom"ass three collectives
under the same roof.
Collectives also !nown as 'co(o"eratives' 'coo"eratives' or 'co(o"s' are #rou"s
of individuals who )oin to#ether to underta!e an activity for their mutual
benefit. Co(o"s may be for("rofit or not(for("rofit unioni*ed or not and
le#ally incor"orated or not + what,s different about a co(o" is that it,s owned
and o"erated by its members.
-ou may be familiar with a nei#hborhood food co(o" or credit union. .hese are
consumer co(o"s which "ool resources to offer discounted services to their
members.
&ra"hic desi#n collectives are '"roducer co(o"s' owned and o"erated by their
em"loyees. .his is /uite different from a firm with an em"loyee stoc!
ownershi" "ro#ram. Co(o" wor!ers share in decision ma!in# and res"onsibility
as well as "rofits and losses.
0hy form a coo"erative1 2ne ar#ument is that or#ani*ations owned by the
communities they serve are more accountable and can em"hasi*e service over
"rofit. 0hen em"loyees #overn their own wor!"lace they can desi#n a ha""ier
stable and more e/uitable wor! environment.
But there,s also the value of or#ani*in# accordin# to one,s ideals. .hou#h we are
su""osedly livin# in a democracy most of us s"end our days wor!in# for "rivate
tyrannies. 3ivin# and "artici"atin# in a democracy should consist of more than
)ust votin# once a year. 0e should be able to "artici"ate in the decisions that
affect our lives.
2ne member of a coo!in# collective sums it u": '0e,ve tried not only to feed
"eo"le well but also to treat "eo"le well. 2ver the last 45 years our com"any
has come to re"resent somethin# bi##er than we ever antici"ated and
somethin# better than the usual business.'
Callin# all co(o"s
Co(o"s have e6isted for centuries + and seem to be e6"eriencin# a resur#ence
today.
Co(o"s flourish around the world: a#ricultural co(o"s in 7frica $sraeli
!ibbut*im factories in 7r#entina construction firms in %rance...even the
3ondon Sym"hony 2rchestra and Philharmonic are run as coo"eratives.
Communal livin# collectives are as old as human society itself. Economic
coo"eratives in Euro"e #o bac! to the seventeenth century when 8ua!ers
established consensus(based intentional communities. 92ur own Milton &laser
#rew u" in a livin# coo"erative in the Bron6 thou#h a little later.)
.he oldest continuin# consumer co(o" in the :.S. was started in ;<=> by one
Ben)amin %ran!lin. ?e hel"ed found the Philadel"hia Contributionshi" for the
$nsurance of ?ouses from 3oss by %ire for member households 'to be and
continue to be Contributors unto and e/ual Sharers in the losses as well as the
#ains.' .hat is households and businesses subscribin# to the "ro#ram "ooled
their resources to "ay for fire dama#e affectin# the members 9and to reward
volunteer firefi#hters for s"eedy wor!).
$ndustrial coo"eratives have been around since the industrial revolution itself.
.he lon#est runnin# co(o"s in the :.@. and in $taly are well over a century old.
Since ;A=B the Mondra#on Coo"erative Cor"oration has #rown to become one
of the twelve lar#est com"anies in S"ain.
.he ;A<5s saw an e6"losion of coo"eratives in the :nited States as youth
involved in countercultural movements sou#ht alternative or#ani*ations and
or#ani*ational structures. $n )ust over a decade they formed more than ;555
"roducer coo"eratives at least ;455 alternative schools between =555 and
;5555 food co(o"s and several thousand rural and urban communes.
.he Moosewood Collective was one of those #rou"s that came to#ether in the
,<5s. Since its foundin# in $thaca Cew -or! the #rou" has e6"anded from
ownin# and o"eratin# a small natural foods restaurant to become a lar#er
more diversified com"any. $n addition to runnin# a busy restaurant and
authorin# ten celebrated coo!boo!s the #rou" now "roduces a line of or#anic
food "roducts for retail stores. .he Moosewood Destaurant was named one of
the thirteen most influential restaurants of the twentieth century by Bon
Appetit ma#a*ine.
.he late ,A5s saw another sur#e of interest in co(o"s. $ns"ired in "art by the
autonomous councils of the Ea"atistas within five years the $nde"endent Media
Center movement has #rown to become a #lobal networ! of nearly >55 local
collectives in 4B countries.
%urther evidence of their "o"ularity + co(o"s even have their own $nternet
domain name. Co(o" 0eb sites can use .coo" instead of .com or .or# 9as in
www.e##"lant.coo").
Decisions, decisions
2ne challen#e for any or#ani*ation with many owners is the decision(ma!in#
"rocess. 0hen ma)or or#ani*ational decisions re/uire consideration by all the
em"loyee(owners this "rocess can ta!e time.
Some consumer co(o"s such as rural electric coo"eratives are run day(to(day
by a "rofessional staff in a familiar hierarchical structure. .hese o"erations are
#overned by boards elected by co(o" members to ma!e decisions on their
behalf.
$n many "roducer coo"eratives however the wor!ers are their own board
members and set the direction of the or#ani*ation to#ether.
.hese co(o"s often use the 'consensus "rocess' to reach decisions. .his is a
form of decision ma!in# that em"hasi*es "artici"ation inclusion and the
creative inter"lay of ideas throu#h discussion and the resolution of differences.
.his sounds burdensome but many of us use consensus in our daily lives and
relationshi"s. 0hen we listen to each other and collaborate to ma!e satisfyin#
decisions for all we have reached consensus.
Consensus is about comin# to harmony. .he #oal is to achieve a decision that is
the best for the whole #rou" not )ust a ma)ority or "owerful elite. .he "rocess
em"owers individuals who mi#ht otherwise be overridden in a ma)ority vote.
Fecisions are ado"ted by unanimous a#reement + thou#h lar#er #rou"s may use
a 'modified consensus' which ta!es more than one "erson to bloc! a decision.
7 recurrin# criticism of the "rocess is that it is less efficient + meetin#s and
discussions may ta!e lon#er than votin# or e6ecutive decree. .his is "articularly
challen#in# under a desi#ner,s im"endin# deadlines. ?owever defenders of
consensus "oint to its #oals: $s this #oal to ma!e a /uic! decision1 2r one that
everyone has a voice in and a#rees with1
7nd yet while the consensus "rocess may be slow or difficult it may also
result in better decisions. .he resolution of differences may lead to
une6"ected and creative solutions. 7nd because they are more circums"ect
consensus decisions may be lon#er lastin#.
%or more about the consensus "rocess read On Conflict and Consensus: A Handbook on Formal Consensus
Decisionmaking at www.consensus.net.
Co(o"s in action
0hile the advanta#e of consumer co(o"s is its stren#th in numbers a main
advanta#e of "roducer co(o"s is res"onsiveness to its members. $n a "roducer
co(o" wor!er(owners have the ability to sha"e their own wor!"lace and
direction.
.his can create a level of resilience in the cycle of economic u"s and downs.
Dather than layin# off the most vulnerable em"loyees coo"erative owners can
collectively a#ree to a mutually acce"table solution.
$n small collectives members may also be able to learn all as"ects of runnin# a
business. $n lar#er or#ani*ations day(to(day decisions are made by
de"artments while bi#("icture decisions are determined in bi# meetin#s where
everyone has a say.
.here may also be a ta6 advanta#e. Co(o"s in the :.S. are ta6ed li!e
"artnershi"s + income to the co(o" is distributed and ta6ed as "ersonal
income rather than ta6ed first as income to the cor"oration and then a#ain
when "aid to em"loyees.
But enou#h of the theory. Below are five "rofiles of "racticin# desi#n
coo"eratives differin# in si*e medium and le#al incor"oration.
Fesi#n 7ction Collective
$nnosanto Ca#ara describes himself as 'a bi# wor!er co(o" #ee!.' ?e )oined
$n!wor!s Press as PrePress in ;AA=. 7nother co(o" founded in the ,<5s $n!wor!s
9www.in!wor!s"ress.or#) is a wor!er(owned collective and union "rintsho"
with an em"hasis on '#reen' "rintin#.
$n >554 the desi#n de"artment became a se"arate entity and the two members
formed the Fesi#n 7ction Collective a wor!er(owned union(or#ani*ed for(
"rofit cor"oration 9www.desi#naction.or#).
$n!wor!s and Fesi#n 7ction continue to collaborate and share a commitment to
"roducin# "rofessional #ra"hics and resources for social movements. .heir
clients sin# "raise of their wor! and its im"act. '$f it,s not documented it didn,t
ha""en' says $ris Carter Brown from the 3ouisiana Buc!et Bri#ade. ?oldin# u" a
re"ort "roduced by Fesi#n 7ction about the cam"ai#n to sto" Shell from
"ollutin# her nei#hborhood she says '?ere,s the "roof this is real. 0e are not
cra*y and we are tired of "uttin# u" with this.' .he "olished so"histicated
#ra"hics "ro)ect an ima#e of an or#ani*ed so"histicated movement + one that
can overcome its o""onents.
Fesi#n 7ction has since #rown to four members alon# with a few youn# "eo"le
as interns. Both Fesi#n 7ction and $n!wor!s re/uire consensus for hirin# and
firin# but use modified consensus for other decisions. ?irin# into a collective
re/uires e6tra careful consideration: you are not )ust hirin# an em"loyee but
selectin# a co(owner who will hel" run the or#ani*ation. Fesi#n 7ction also
loo!s for "eo"le who re"resent communities of the social movements they wor!
with.
'2wnin# your own labor is incredibly em"owerin#' says $nno. 0ith ri#hts
however come res"onsibilities. '.he decision(ma!in# "rocess can be slower. 0e
definitely move more slowly than other businesses.'
'Peo"le ma!e many mista!es in small businesses too. .y"ical startu"s have a
hi#h rate of failure. 8uic! decisions can #o wron# + and everyone can lose
their )obs. Co(o"s have a hi#h rate of success and are more stable.' $n addition
to carryin# a full wor!load they are also considerin# ways of buildin# a broader
networ! to brin# desi#n and communication services to social movements. .hey
ho"e to build a common trainin# #round for "eo"le who want to become
desi#ners and who want to en#a#e their communities.
%ounded in ;A<4 Ded Sun Press 9www.redsun"ress.com) is a collectively owned and o"erated union
"rintsho" incor"orated as a not(for("rofit business in Massachusetts. .he staff of ten is divided into
teams: "re"ress "ress sales and a business mana#er. Each team is re"resented in a mana#ement team
and everyone sits on the board of directors. .he board sets overall bi# decisions li!e salaries and bi#
"urchases.
.he union hel"s set "ay scale and #overns the "rocedure for firin# em"loyees. Member Jenny Silverman
notes 'Bein# a coo"erative is #ood but would not "rotect individuals from bein# fired without cause.
?avin# a union contract re/uires owners to have )ustification and allows wor!ers to have re"resentation.
$t also shows solidarity with the broader union movement.'
Salary for the four cate#ories of )obs is com"arable to industry norms with an additional bonus for
seniority. 7t the end of the year the #rou" shares the "rofits e/ually. '0hen everybody has a sta!e in the
business a certain ownershi" "eo"le feel more em"owered about their wor! and their life' says Jenny.
'Peo"le are not afraid of losin# their )obs. .he "ay structure is trans"arent and has some differentiation
but the #a"s are narrow.' .he business "rovides health insurance for all em"loyees not )ust mana#ement
+ full covera#e for individuals and A5G for family members.
Many of the members of Ded Sun were active in the environmental movement and brin# this commitment
to the "ress. .he "rinter was the first in Boston to stoc! recycled "a"er. .he com"any recycles its own
"a"er and film and uses solvents that are as safe as "ossible. .hey also "romote sustainable solutions to
their customers.
Price com"etition in "rintin# is stiff but the "ress wor!s hard to remain com"etitive. By "roducin# a hi#h(
/uality "rinted "roduct on recycled "a"er with a union label the "ress distin#uishes itself within its
mar!et and maintains a loyal customer base.
.he #rou" strives for consensus but decides by a vote with a sim"le ma)ority. Most votes however are
unanimous.
'Sometimes it ta!es time to ma!e decisions' Jenny says. '%or e6am"le it may ta!e a lon#er time to
decide on a ma)or ca"ital "urchase than in a "rivately owned com"any. 7lthou#h the "rocess is sometimes
time consumin# the deliberation results in cautious #ood decisions. 2ur decisions have to be )ustified to
the whole #rou".
'But when "eo"le come to#ether' she says '$t,s a #reat moment.'
7s a collective we li!e seedin# alternative ideas. 0e ta!e turns wor!in# on "ro)ects' he says. '$t,s li!e a
#rou" of musicians. 0e,ve found a comfortable wor!in# s"ace to )am.'
7ll to#ether now
.he coo"erative structure may not wor! for everyone but if you,re interested here are a few resources
to find out more:
Cational Coo"erative Business 7ssociation: www.ncba.coo"
.he :.S. %ederation of 0or!er Coo"eratives: www.uswor!ercoo".or#
Cetwor! of Bay 7rea Coo"eratives: www.nobawc.or#
$nternational Co(o"erative 7lliance: www.coo".or#
.he $ndustrial Coo"eratives of 7merica: www.ica(#rou".or#
7s #ra"hic desi#ners we !now that sha"es #ive meanin# to forms and inflect their e6"ression. .he same
can be said of the sha"es or structures of our or#ani*ations. $t,s no accident that the #rou"s above tend
to wor! with non"rofit and activist or#ani*ations.
Co(o"s reflect a commitment to somethin# #reater and yet somethin# very basic + that we are stron#er
when wor!in# to#ether to solve common "roblems.
Co(o"s are a microcosm and model for a society built on mutual res"ect and direct "artici"ation where
businesses are rooted in their communities.
0hether comin# to#ether to benefit a community or out of entre"reneurial ambitions when em"loyees
own and control their own wor!"lace they can create a better ha""ier wor!in# environment and a richer
life.
Co(o"s are somethin# #reater than the sum of their "arts. .hey are more than business as usual
http://www.researchandmar&ets.com/reportinfo.asp'report_id(##))$*
$+the cooperative movement (williams richard
http://www.dlsl.edu.ph/downloads/pdf/downloadable_forms/ac,uisitions/boo&s/boo&s_no
vember-..pd
/+0123 P"41 15 46CC344 57 C55P38"19:34,;3<=5>" 36?3<95 @--/
7)Lee Egerstrom,
Seizing Control: The International Market Power of
Cooperatives Trans !" Cressie Comm#ni$ation Services from a 1995
Dutch edition. Rochester, MN: Lone Oak Later I heard aout the re!ort " #$tus,
and she kind$" !rovided me %ith a co!".
, &ress, 19'9(, " )d%ard *. S!ann+ and ,he #rchitectura$ and Socia$
-istor" of .oo!erative Livin/ 0London: Macmi$$an, 19''(, " L"nn 1.
&earson. ,here ma" have een others I missed, ut the !oint is sim!$"
that students of uto!ianism re/u$ar$" inc$ude coo!eratives as !art of
our su2ect.
#s far as I am a%are, the 3rst studies of intentiona$ communities %ere
studies of coo!eration. ,he 3rst stud" %as initia$$" added as an
a!!endi4 to another %ork, ut $ater !u$ished se!arate$". ,his %as
Mar" -enne$$5s 6#!!endi477-istor" of .oo!eration6 in .har$es 8ra", ,he
&hi$oso!h" of Necessit" 01'91(. -enne$$5s essa" %as not inc$uded in
$ater editions, ut it %as re!u$ished as #n Out$ine of the :arious Socia$
S"stems ; .ommunities %hich have een 1ounded on the &rinci!$e of
.o7o!eration 01'99(. ,his %as fo$$o%ed " <i$$iam .hamers5s .o7
o!eration in Its Di=erent 8ranches 01'>?(. # $ater %ork that advanced
scho$arshi! on the su2ect %as -istor" of .oo!eration in the @nited
States 01'''(, %hich inc$udes si4 cha!ters " various authors on
coo!eration in di=erent re/ions of the @nited States, inc$udin/ some
materia$ on intentiona$ communities, a$thou/h most is on other forms
of coo!eration.
,he 3rst modern student of intentiona$ communities, -enrik 1. In3e$d,
entit$ed most of his studies to indicate that he %as interested in the
coo!erative movement 0See In3e$d 1959, 199A, and 19A1(. ,he 3rst
intentiona$ communit" in the @nited States, &$ockho"5s .ommon%ea$th,
is often descried as a coo!erative communit" 0See Do%nie(. ,he most
famous 1rench intentiona$ communit", the 1ami$istere at Buise, is often
treated as !art of the coo!erative movement, as is the Sunrise .o7
o!erative 1arm .ommunit" 0See .ohen(, and other communities in the
@S 0See, for e4am!$e, Bide and McIntosh(. #nd one of the est7kno%n
studies of coo!eration c$ear$" traces its roots to uto!ianism, even in
the tit$e of the ook, Beor/e Me$n"k5s ,he Search for .ommunit": 1rom
@to!ia to .o7o!erative Societ" 019'5(.
,oda", cohousin/, one of the hottest to!ics in the 3e$d, is c$ear$" an
evo$ution from coo!erative housin/+ feminist scho$ars have een
fascinated " accounts of e4!eriments in and !ro!osa$s for coo!erative
housekee!in/+ and the kiutC movement, the most im!ortant
e4!eriment in communa$ $ivin/, c$ear$" comes out of the coo!erative
movement as much as it comes out of uto!ianism, socia$ist theor", and
its other %e$$7documented sources.
8ut the coo!eration %e are concerned %ith is coo!eration that invo$ves
the %ho$e of !eo!$es5 $ives rather than 2ust one as!ect of it. -ence, %e
ma" e memers of a food co7o!, ut most of us do not de3ne
ourse$ves as coo!erators ecause of that. <e /et etter Dua$it" food at
a $o%er !rice, and %e ma" %ork at the coo! 0$ess so no% than in the
>?s %hen such %ork tended to e a reDuirement of memershi!(, ut it
a=ects on$" a narro% s$ice of our $ives. Ovious$", this is di=erent from
$ivin/ in a kiutC or in a cohousin/ deve$o!ment 0thou/h the" var"
tremendous$" in the de/ree to %hich one $ives $ife communa$$"(, or the
!ro!osa$s for and e4!eriments in coo!erative housekee!in/, %hich
%ere desi/ned to transform %omen5s $ives.
http://rrp.saepub.com/ci/reprint/*./*/*#$
unn christhoper
http://diitalcommons.shu.ac.u&/ciod_papers/$%/
ridley duff r.A
http://www.iira.or/pubs/publications/9:"8=C_C4_1/#.pdf
waner,Bennifer