The Co operative organisation movement has been necessitated to protect the interests of weaker sections of society. The primary objective of this movement is “how to protect economically the weaker sections of society from the oppression of economically strong segment of society?” In all forms of organisation, be it a sole trade, partnership or joint stock company, the primary motive is to increase profits.
What is Co Operative Organisation? Introduction
The businessman tries to promote his own interests through all possible means including exploitation of consumers. The co-operative form of organisation is a democratic set up run by its members for serving their own interests. It is self help through mutual help. The philosophy behind co-operative movement is ‘all for each and each for all’.
Co-operative societies are voluntary associations started with the aim of service to members. Hubert Calvest says, “Co-operation is a form of organisation wherein persons voluntarily associate together as human beings on the basis of equality for the promotion of the economic interests of themselves.” V.L. Mehta defines co-operation as, “One aspect of a vast movement which promotes the voluntary association of individuals having common economic needs who combine towards the achievement of the common economic end they have in view and who bring into this combination a moral effort and a progressively developing realization of moral obligation.” The underlying factor in this definition is the achievement of economic ends.
In fact, co-operative movement was started to safeguard the consumers from the exploitation of capitalism. Dr. H.N. Kunzen defines co-operatives as, “Co-operative is self help as well as mutual help. It is a joint enterprise of those who are not financially strong and cannot stand on their legs and, therefore, come together not with a view to get profits but to overcome disability arising out of the want of adequate financial resources”. This definition suits the Indian context. In India, co-operatives are started by the weaker sections of society for protecting its members from the clutches of profit hungry businessmen.
The Indian Co-operative Societies Act, 1912 defines co-operatives in Section 4 as, “a society which has its objectives the promotion of economic interests of its members in accordance with co- operative principle.”