Consumer Essay

5775 Words24 Pages
CONSUMER CO-OPERATIVES INTRODUCTION A consumers' cooperative is a business owned by its customers for their mutual gain. It is a form of free enterprise that is oriented toward service rather than pecuniary profit. The customers or consumers of the goods and/or services the business provides are also the individuals who have provided the capital required to launch or purchase that enterprise. A consumers cooperative may be a supermarkets, convenience stores, and other businesses owned by independently-owned, and run Co-operative societies, which benefit from joint co-ordination and co-operation in managing their businesses. As mutually-owned businesses, each member of a society has a shareholding equal to the sum they paid in when they joined. The first consumer cooperative store was established in Rochdale, Eng., in 1844, and most co-ops are modeled after the same, original principles. They are based on open consumer membership, equal voting among members, limited customer services, and shared profits among members in the form of rebates generally related to the amounts of their purchases. Consumercooperatives have gained widespread popularity throughout western and northern Europe, particularly in Denmark, Finland, Iceland, Norway, Sweden, and Great Britain. Co-ops typically emerge because community residents believe that local retailers' prices are too high or service is substandard. DEFINITI0N: According to the Maharashtra Co-operative Societies Act, 1960. Sec.2 (9) defines a consumer co-operative society as a society, the object of which is: a. The procurement, production or processing and the distribution of goods to or, the performance of other services for its members as also other consumers, b. The distribution among its members and customers, of the profit occurring from such procurement, production, processing and distribution are in

More about Consumer Essay

Open Document