Objectives and Importance of Co-Operative Society free essay sample

A cooperative is not just formed to make profits; its objective is to ensure the economic welfare of its members. 2. Creating unity and solidarity: A cooperative is characterized by the strength of its unity. Therefore bringing the extorted and deprived together and encourage them work in unison is a goal of a cooperative society. 3. Awakening of working zeal: Cooperatives also helps to invoke confidence in the minds of people who have lost their will to work as they had faced constant failures in their lives. . Creating interest in saving: A cooperative encourages its members to save more. Then it accumulates these small amounts of savings from the members to raise capital. 5. Solution to capital problem: Lower middle class people cannot utilize their capabilities due to lack of capital. They are extorted by landlords and the richer class. Therefore another prime objective of a cooperative is to manage necessary resources for its members. 6. Development of efficiency: Another aim of cooperatives is to create a skilled and efficient labor force by arranging training sessions for its members. Removal of middlemen: Producers are often deprived of their rightful returns as the middlemen cheat them by unfair means. Cooperatives can be formed to deal with such problems. 8. Co-coordinating ability: Bringing together the limited skills of the lower middle class to create a large business is the target of a cooperative. The cooperative benefits from the returns from the large business and share it among them. 9. Defense against disturbance: Small producers often face various types of disturbances from different parties like extortion by certain landlords. A cooperative can be formed to deal with such problems. 10. Advantages of large scale business: A cooperative combines the small fortunes of its members into a large capital and then a big business is formed. This leads to greater production and greater yields which is enjoyed by the members. 11. Teaching of moral principles: Cooperatives not only ensure economic stability but also inserts moral principles into the members’ minds, making them stronger mentally. 12. Improvement of skill: Cooperatives play a vital role in improving the technical kills of the uneducated and the poor. They arrange for trainings so that their members can show appropriate skills in their respective fields. 13. Removal of middlemen: Small producers are deprived of certain percentage of their rightful earnings as the middlemen take advantage by cheating them. Formation of cooperatives can prevent such unfair means. 14. Removal of monopoly business: Some producers try to create a monopoly in market economy. This poses difficulty for small investors to come forward. Cooperatives unite these small investors and create an environment of competition. Thus monopolies are prevented. 5. Capital formation: Cooperatives encourage its members to save more and then combine their small savings into a large capital. This leads to greater investment and hence greater production. 16. Creation of loan facility: Small producers often face high shortages of capital. When they turn to certain landlords for loans, they are mistreated and get caught in loan traps. Cooperatives arranges for easy term loans for its members to ensure continuous and rapid production. 17. Solution to unemployment problem: Cooperatives create more job opportunities for their members. Social development: Cooperatives also plays a vital role in the development of the society. They not only foster psychological and economic development of their members but also resolve their residential problems in certain situations develop transportation, education, health and carry on family planning programs. 19. Economic development: By helping to develop the agricultural sector, small and cottage industries, etc. and hence reducing poverty in the country, cooperatives contribute to the country’s economy. Principles of cooperative society 1. Unity: ‘Unity is Strength’ is the main belief of a cooperative. Keeping the future in mind, like-minded people join together to form cooperatives in order to proper as a whole; they stay united in all types of situations. 2. Equality: A cooperative society believes in equality. No matter what their place is in the society or how well they are positioned economically, the members are given equal respect. 3. Cooperation: The members of a cooperative cooperate to ensure efficient output. They work as a team to get rid of their mutual shortcomings. 4. Honesty: A cooperative operates in an honest manner. Dishonesty may lead to suspicion in the minds of the members, which may cause them to lose interest. 5. Trust and confidence: The members of a cooperative trust and have confidence in each other’s ability. Greater the trust, more interest will be generated among the members. 6. Service: The members possess the mindset to help others as much as possible whenever the need occurs. 7. Democracy: There is democracy in the selection of the management committee and also while major decisions are taken. 8. Proximity: The members are usually likeminded ones. If it is not so, too many different opinions will hamper the progress of the cooperative. 9. Distribution of profit: Since cooperatives are not profit-motive organizations, all the profit is not distributed among the members. 20 percent profit is retained back for future investment. 10. Equal right of votes: One member is entitled to one vote when electing the management committee or when major decisions are made, irrespective of the amount of share he/she holds. 11. Voluntary association: Members can withdraw their membership anytime and upon approval of the management committee can handover his/her share to someone else. Means of removing the problems of cooperative organization in Bangladesh 1. Adoption of realistic plan: There is need for a plan on how the cooperatives in Bangladesh should operate in a realistic manner. Amount of contribution from national, central and primary level cooperatives should be determined so that they can operate in specialized manner. 2. Strengthening of training program: Both the government and the NGOs should come forward and arrange more training programs. 3. Widespread publicity: The idea of forming cooperatives should be advertised in a large scale. Virtuous and successful cooperatives should be highlighted so that the general public can be inspired by them. 4. Inclusion of co-operative subject in the syllabus: To establish the importance of cooperatives, it should be included as a subject at the primary and intermediate levels and if possible at the under graduate level as well. This will encourage students to think about forming cooperatives in the future. 5. Increasing publications on co-operatives: To spread information about cooperatives, more books about cooperatives should be published and it should appear in the columns of newspapers and magazines. Giving incentives to executives: It should be understood that no one will work for free for long. Therefore the executives should be given incentives to encourage them to work enthusiastically and efficiently. 7. Removal of corruption and nepotism: To remove corruption, modern management system should be in place. 8. Effective coordination: A cooperative is run under certain rules set by the government. These rules should be restructured so that it aids the cooperative’s operation and not hamper it. Also there should be a certain degree of coordination among national, central and primary level cooperatives. 9. Development of cooperative department: The ‘cooperative’ department of the government should be restructured by appointing pro-cooperative people in important positions. 10. Increase of government cooperation: Money spent by the government in aid of the cooperative revolution is almost negligible compared to its other spending. Both financial and non-financial support from the government should be increased.