Dean & Head, Newcastle Business School,Professor of Behavioural & Institutional Economics,University of Newcastle, Australia; Professor of Economics, Emeritus, University of Saskatchewan Email: morris.altman@newcastle.edu.au ... [ view full abstract ]
Dean & Head, Newcastle Business School,Professor of Behavioural & Institutional Economics,University of Newcastle, Australia;
Professor of Economics, Emeritus, University of Saskatchewan
Email: morris.altman@newcastle.edu.au
This paper examines the hypothesis that core cooperative principles, as articulated in the ICA principles, represent necessary conditions for the efficient, effective, and sustainable operation and growth of a cooperative and, more generally, of cooperatives. Conventional economic theory would suggest that such principles would impede economic success and typically generate failure unless the principled coop is subsidized or otherwise protected from market forces. Another perspective would maintain that cooperative principles should be modified to take into consideration local cultural, religious, and ethnic considerations. I model core cooperative principles as they relate to economic viability. I argue that these principles are necessary to cooperative success and provide cooperatives with a potential cooperative advantage on the market apart from potentially generating higher levels of socio-economic wellbeing to cooperative members. Moreover, introducing significant modifications to cooperative principles based on cultural, religious, and ethnic considerations can negatively impact on cooperative success and linked socio-economic outcomes. Cultural, religious, and ethnic considerations can enhance to cooperative success where they supplement core cooperative principles by adding to trust, solidarity, and social cohesion (and identity), for example. It is important to note that the current core ICA principles represent a modification of the ‘original’ Rochdale principles. These revisions, however, are consistent with the spirit of the latter. And this consistency will also be addressed in this paper with regards to impacting the economic viability of coop and linked socio-economic outcomes.
References:
Altman, M. (2015). "Cooperative Organizations as an Engine of Equitable Rural Economic Development" Journal of Co-operative Organization and Management 3: 14-23.
Altman, M. (2014). “Are Cooperatives a Viable Business Form? Lessons from Behavioural Economics.” In Sonja Novkovic and Tom Webb, eds. Co-operatives in a Post-Growth Era: Towards Co-operative Economics. London: ZED Books.
Altman, M. (2009). “History and Theory of Cooperatives,” in International Encyclopedia of Civil Society, edited by Helmut Anheier & Stefan Toepler. New York: Springer.
Altman, M. (2006). “Workers Cooperatives as an Alternative Competitive Organizational Form,” Advances in the Economic Analysis of Participatory and Labor-Managed Firms, 9: 213-235.
Novkovic, S. (2006). “Co-operative business: The role of co-operative principles and values.,” Journal of Co-operative Studies 39:15-16.
