View from enchantment

Cooperatives and the Spirit of July 4th

July 4th is, of course, the day we celebrate American independence. It has been 244 years since the 13 colonies declared, “We hold these truths to be self-evident…” and laid the groundwork for the democracy we call the United States of America. Cooperatives owe their existence to this revolutionary philosophy. When 28 textile workers in the tiny English town of Rochdale opened a little store in 1844, to sell goods which they otherwise could not afford—the modern Co-op movement was formed.

The Rochdale Pioneers applied the concept of equality to the marketplace. They treated all customers equally, charging everyone a single, fair price for the product. It also ran the store so each member had an equal voice in the operation and an economic stake in the success of the business.

By 1880, over half a million people in England were members of these consumer societies. By the turn of the century, that number ballooned to 1.7 million. The growth continued through the 20th century and expanded outside of England to the United States and other countries around the world.

Today’s co-ops are owned by their members, who also control the enterprise by a democratic one member—one vote philosophy. This means that decisions made in cooperatives are balanced between the pursuit of profit, and the needs of members and their communities. Most co-ops follow the Seven Cooperative Principles, a unique set of guidelines that help maintain their member-driven nature.

In America, more than 110 million credit union member-owners control over $1.1 trillion in assets. Thirty percent of Americans belong to cooperatively owned credit unions.

Cooperatives are more widespread than you might think. From credit unions to apartment buildings to worker-owned businesses, co-ops appear in every facet of today’s economy. In many cases, they formed in response to economic crises like the Great Depression, or to let small groups compete in monopolized markets. Modern American co-ops include agricultural marketing groups like Land O’Lakes and Ocean Spray; retail outlets like R.E.I.; and many local farm-to-table programs.

Purchasing co-ops like ACE and True Value Hardware let independent hardware stores compete with chain outlets. Yet, in many cases, Americans don’t think of these well-known brands as cooperatives. In fact, the United States is full of co-ops—more than 30,000 of them.

The United Nations has even recognized cooperatives through its resolution process. In its resolution, it states: “Cooperatives, in their various forms, promote the fullest possible participation in the economic and social development of all people, including women, youth, older persons, persons with disabilities and indigenous peoples, are becoming a major factor of economic and social development and contribute to the eradication of poverty.” —UN Resolution 64/136, 2010.

The history of cooperatives that you are a part of through your rural electric cooperative membership is a storied tradition. As more and more people are introduced to the cooperative, it becomes a very attractive business model.

The 13 colonies wrote their declaration of independence when the world was excited about fairness and equality. Cooperatives inherited that passion and brought it to business and commerce. They are the businesses that exist to serve their members. They are the only business controlled by a one member—one vote governance model. They are the only business model with a connection to the spirit of July 4th, 1776.

So, on July 4th, join your rural electric cooperative in celebrating our great nation.