What is a Cooperative?
Have you ever heard of a cooperative? You may have seen the term used in various contexts, such as food co-ops or credit unions, but what exactly is a cooperative? In this post, we'll explain the concept of a cooperative and how it works.
A cooperative is a business owned and operated by its members. The members may be customers, employees, or producers, depending on the type of cooperative. A cooperative's primary goal is to serve its members' needs and interests rather than generate profits for outside shareholders.
Cooperatives operate under principles that guide their business practices, including democratic control, member economic participation, and concern for the community. Members have an equal say in the decision-making process, regardless of the size of their financial investment in the cooperative.
Cooperatives can take many forms, such as consumer co-ops, worker co-ops, and producer co-ops. In a consumer co-op, the members are also the customers, and the cooperative provides goods or services to its members. In a worker co-op, the members are also the employees, and the cooperative operates a business that employs its members.
They can be found in various industries, from agriculture to healthcare to housing. They provide a unique alternative to traditional business models and can help to create a more equitable and sustainable economy.
Fertile Ground is a worker cooperative. Worker Cooperatives are values-driven businesses that put worker and community benefits at the core of their purpose. The central characteristics are that workers own the business and participate in its financial success based on their labor contribution to the co-op. Workers have representation and vote for the board of directors, adhering to the principle of one worker, one vote.
Worker-Owners enjoy work because they have control over the conditions of their labor. Because worker-coops are locally owned, workers don’t pollute their backyards; they are more inclined to pay themselves fairly, take care of their safety, and contribute to the local economy. Worker co-ops are also more productive than traditional workplaces because workers have greater buy-in and receive a portion of the surplus (profit).
We love worker co-ops because they can be a tool to empower people who are locked out of the mainstream economy. Check out institute.coop for more info about worker co-ops!
We hope this newsletter has helped you to better understand what a cooperative is and how it operates. If you have any questions or want to learn more, please don't hesitate to reach out.
Thank you for your support of our cooperative!