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A Day in the Life of Cooperative America

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A Day in the Life of Cooperative America A DAY IN THE LIFE OF COOPERATIVE AMERICA A Project of the National Co-op Month Committee COOPERATIVE PRINCIPLES Cooperatives follow seven internationally recognized principles as adopted in 1995 by the International Cooperative Alliance. The National Cooperative Business Association lists these as: 1. Voluntary and Open Membership Cooperatives are voluntary organizations, open to all persons able to use their services and willing to accept the responsibilities of membership, without gender, social, racial, political or religious discrimination. 2. Democratic Member Control Cooperatives are democratic organizations controlled by their members, who actively participate in setting their policies and making decisions. Men and women serving as elected representatives are accountable to the membership. In primary cooperatives, members have equal voting rights (one member, one vote) and cooperatives at other levels are organized in a democratic manner. 3. Member Economic Participation Members contribute equitably to, and democratically control, the capital of their cooperative. At least part of that capital is usually the common property of the cooperative. They usually receive limited compensation, if any, on capital subscribed as a condition of membership. Members allocate surpluses for any or all of the following purposes: developing the cooperative, possibly by setting up reserves, part of which at least would be indivisible; benefiting members in proportion to their transactions with the cooperative; and supporting other activities approved by the membership. 4. Autonomy and Independence Cooperatives are autonomous, self-help organizations controlled by their members. If they enter into agreements with other organizations, including governments, or raise capital from external sources, they do so on terms that ensure democratic control by their members and maintain their cooperative autonomy. 5. Education, Training and Information Cooperatives provide education and training for their members, elected representatives, managers and employees so they can contribute effectively to the development of their cooperatives. They inform the general public— particularly young people and opinion leaders—about the nature and benefits of cooperation. 6. Cooperation among Cooperatives Cooperatives serve their members most effectively and strengthen the cooperative movement by working together through local, national, regional and international structures. 7. Concern for Community While focusing on member needs, cooperatives work for the sustainable development of their communities through policies accepted by their members. 3 WELCOME TO COOPERATIVE AMERICA Every minute of every day cooperatives are impacting the lives of Americans. Because this unique form of private enterprise is a powerful economic force, we have created this publication to celebrate its importance to our nation. A Day in the Life of Cooperative America was first published in 1994 to both describe the diversity of coopera- tives and celebrate the 150th anniversary of the Rochdale Pioneers, the 28 workers in England who formed the first successful cooperative in 1844. From that humble beginning has grown a business model replicated across our country—and around the world. Though cooperatives are embraced globally, their common characteristic of democratic control speaks to the American spirit. Participation in cooperatives allows people from all walks of life to reap the benefits of a joint endeavor while maintaining the independence we so cherish in the United States. The following is a new version of A Day in the Life of Cooperative America for your education and enjoyment. Read on to learn what happens in a day in the life of cooperative America. Paul Hazen President and Chief Executive Officer National Cooperative Business Association On behalf of the National Co-op Month Committee 4 A DAY IN THE LIFE OF COOPERATIVE AMERICA A Project of the National Co-op Month Committee By DONNA FOSTER ABERNATHY With Contributions By NaNcy JorgeNseN • Patricia Miller Graphic Design TRIANglE PaRK CREATIVE, SHEllY DAHN, JOHN SEYMOUR-ANDERSON 5 ACKNOWLEDGMENTS The author gratefully acknowledges the staff of the National Cooperative Business Association for their support and assistance in the research and development of this project. The Co-op Month Committee would like to thank all of the people who contributed to the Co-op Month fund and greatly acknowledges the support of: Credit Union National Association National Milk Producers Federation Farm Credit Council National Rural Electric Cooperative Association National Association of Federal Credit Unions National Rural Telecommunications Cooperative NCB National Rural Utilities Cooperative National Cooperative Business Association Finance Cooperation National Cooperative Grocers Association National Telecommunications National Council of Farmer Cooperatives Cooperative Association National Farmers Union World Council of Credit Unions The Co-op Month Committee would also like to thank the hundreds of others who contributed time, effort and money to Co-op Month 2008. Special Note to Readers of A Day in the Life of Cooperative America Regarding Research on Cooperative Business As the 2008 edition of A Day in the Life goes to print, the University of Wisconsin Center for Cooperatives in Madison, Wisconsin, awaits final approval on Phase I of their landmark research project on the economic impact cooperative businesses have on the U.S. economy. In addition to conducting an accurate census of co-ops in America, the research measures direct, indirect and implied employment and a variety of economic impacts including revenue, assets and members—all designed to gauge the real value of cooperatives. Through the efforts of the National Cooperative Business Association (NCBA), funding of $1.5 million was secured in both public (grants from the United States Department of Agriculture) and private sources. Other donors for the research include: The Blooming Prairie Foundation NCB CHS Inc. National Cooperative Services Corporation The CHS Foundation National Rural Utilities Cooperative Finance Corporation The Cooperative Foundation National Rural Electric Cooperative Association Federated Youth Foundation The University of Wisconsin MSI Fund-CDS The University of Wisconsin can report preliminary results as of press time. We now know that there are more than 28,000 different co-ops operating in more than 45,000 different establishments or locations throughout the country. These cooperatives collectively account for over a trillion dollars in total assets. For updated information on this ongoing project, please visit www.go.coop. 6 TABLE OF CONTENTS Cooperative Principles ..................................... 3 Welcome to Cooperative America .............................. 5 Acknowledgments/Sponsors .................................. 6 Introduction ........................................... 8 Chapter 1 ................ Agriculture .................. 10 Chapter 2 ................Credit Unions ................. 12 Chapter 3 ............... Worker-Owned ..................14 Chapter 4 ................ Health Care ...................16 Chapter 5 .................. Housing ....................18 Chapter 6 ................... Food ..................... 20 Chapter 7 .................Purchasing .................. 22 Chapter 8 ............. Finance & Insurance ............... 24 Chapter 9 ..................Electric ................... 26 Chapter 10 ............ Education & Child Care .............. 28 Chapter 11 ........ Telecommunications & Technology .......... 30 Sources ...............................................32 Photo Credits ...........................................34 7 INTRODUCTION Cooperative connections are everywhere. Even the muffin you ate for breakfast probably began as wheat marketed by a farmer-owned grain elevator. Cooperatives are as American as baseball and apple Living in a Co-op World pie. Though the modern cooperative wasn’t estab- U.S. cooperatives serve some 130 million members, lished until 1844, Ben Franklin got the member- or about half of all Americans. But nearly everyone owned business ball rolling in this country as early experiences a daily co-op connection. Wherever you as 1752. Borrowing a British business model, he live, work or shop, it’s likely a cooperative is involved. convinced some neighbors to join him in forming Just stopping by Starbucks to pick up java and an insurance company owned by its policyholders. a cranberry muffin to enjoy with your morning And the idea caught on. newspaper can involve a multitude of co-ops. That Today, cooperatives, or co-ops, are an everyday premium Sumatra Siborong-Borog coffee was part of life in the United States. These businesses purchased from a grower co-op in Indonesia. The are a powerful economic force, distinctive because flour in the muffin probably started as wheat from they are owned and controlled by the people who a farmer-owned grain elevator cooperative in the use their products or services—and also share in Midwest, and the cranberries might be from Ocean the profits. Spray, a producer-owned co-op. The Associated 8 Press, a news purchasing co-op, likely provided some of the big headlines you read in your newspaper. For many, the word co-op conjures images of a New York City apartment or a farm scene. But the cooperative way of doing business has a strong foot- hold across the American landscape, representing a broad cross-section of people and industries. • Native
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