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Values
For co-operatives, human beings are at the centre of the economy. Co-operatives rely on fundamental values: democratic decision-making, transparency and fairness, individual responsibility
and collective solidarity.
They are using specific management and development methods. They allocate an important share of their income to training their members and to enhancing and developing their corporate life.
Combining economic and social concerns
The co-operative mode of organisation has adapted to the social and economic environment while maintaining the values which underlie the existence of the co-operatives, in which members are both users and managers.
Co-operatives were created in response to the needs expressed by consumers and producers of goods and services and are mainly community businesses.
Rooted in their territory, they will not move to countries with lower labour costs or become take-over targets. Their financial autonomy relies on the social fabric into which they are fully integrated.
Democratic decision-making
The democratic functioning of co-operatives is based on the principle of equality of management rights. The rule « one person, one vote » enables all partners to have during the general meetings the same voting right, without any relation to the amount of share capital held. Therefore, power is not restricted to a minority holding the majority of the share capital.
Members elect their chairman and representatives. They also steer the strategy, influence decisions and design projects jointly. The management functions which they delegate are carried out under their control, which does not harm the proper operation of the co-operative. Many management errors are likely to be avoided due to the members’ concern for the perpetuation of the co-operative.
Strong values
Transparency and fairness
Co-operatives organise the production of goods and services for the benefit of all their members without favouring some of them at the expense of the others. Regardless of the return on interest shares, which always remains limited, income is distributed on the basis of the activity contributed by members, according to the reciprocity principle which is the cornerstone of the co-operative. Each member has access to the financial statements and is involved in each major decision.
Individual responsibility and collective solidarity
The co-operatives’ members (members/clients, members/employees of Scop, in certain cases suppliers) are personally involved in the success of their economic unit. Beyond their personal interest, they create non-distributable reserves which secure the financial independence of their businesses.
Management support programmes, organised by the federations or confederations, also enable co-operatives to cope with crisis situations or strong developments. As a case in point, co-operative prevention programmes allow for the preventive identification of risks.
Solidarity is also expressed between co-operatives in cases of extreme emergency, as well as through development funds or equity contributions.
Scop’s profit-sharing agreements
The Scops apply rules for sharing knowledge and power, but also wealth in order to safeguard their economic independence, which is precious for the employee-partners as well as for the nation’s economy. This allocation system rewards the work of each partner-member in two different manners: an individual share (profit-sharing) and a collective share (non-distributable reserves).
Training and informing
Co-operatives serve their clients and members, and their mission is to train and inform continually. They educate their partner-members. They advise them for instance by publishing brochures focusing on concepts and explanations rather than on a trademark. Co-operation creates in each sector a network for the monitoring of legal, economic and technical aspects. All participants are invited to learn and to advance. Co-operatives consider professional training very important.
Enhancing co-operative life
Co-operatives live through their relations with the movement to which they belong. Elected representatives breathe life into structures, either regional units, federations or confederations which ensure the necessary communication and representation with public authorities, media and partners.
Members imbue their co-operatives with vitality. The members’ practices rely on shared values and knowledge, on participation, on the transmission of information, and therefore on active involvement.
The multiplicity of exchanges, instead of complicating democratic life, contributes a diversity of views. This richness makes it possible to open innovative paths for coming generations while respecting differences.
Moreover, in order to maintain tight links between employees, members, elected representatives and representative structures, particular communication efforts are made.
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