In India, cooperative societies have been extremely important in the socio-economic development of the country as they encourage mutual assistance, shared ownership, and democratic governance. As opposed to profit-seeking political organizations, cooperative societies are established to address the interests of the members. The aims of a cooperative society transcend financial benefits and concentrate on the social good, economic empowerment and fair growth.
The article outlines the major goals of a collaborative society in India, which are important to the empowerment of the communities and the achievement of inclusive development.
Introduction
India boasts many years of cooperative movement, especially in areas like agriculture, credit, housing, dairy and consumer goods. Cooperative societies are created when people voluntarily join together to satisfy common economic or social wants through a jointly owned and democratically controlled organisation.
The main concept upon which a cooperative society is governed is the concept of one member, one vote, which means equality and involvement. The awareness of the goals of a cooperative society aids in the appreciation of the reason why this model has remained pertinent, particularly in a developing economy such as India.
Signification of a Cooperative Society
A cooperative society is a community of individuals who voluntarily unite to share goals of attaining mutual economic advantages by aiding one another. It is being registered either in the Cooperative Societies Act used in the respective state or in the Multi-State Cooperative Societies Act, 2002, when societies are operating in more than one state.
Creating a cooperative society is not aimed at maximising profit but at achieving a common good to serve the interests of the people.
Main Goals of a Cooperative Society
1. Promotion of Mutual Help
The paramount goal of a community society is to promote mutual assistance among its members. Members share their resources, skills and efforts to accomplish those goals which may not be easy to achieve individually. This teamwork lowers the reliance on the external agencies and enhances self-reliance.
2. Economic Welfare of Members
The purpose of cooperative societies is to better the economic situation of their members. It can be giving affordable credit, fair prices for the produce or delivery of the necessary goods, and in whichever case, cooperatives are involved in making sure that members do not find themselves in the hands of middlemen who go ahead to exploit them.
This task is especially important to farmers, small traders and employees who do not have bargaining power in the open market.
3. Elimination of Middlemen
The elimination of the middlemen who exploit producers and consumers is one of the major goals of cooperative societies. Cooperatives assist in pricing and transparency by linking the members directly to markets or services.
As an example, agricultural cooperatives allow farmers to sell farm products in bulk, so farmers get greater returns and minimize market manipulation.
4. Promotion of Savings and Investment
A number of the cooperative societies, particularly credit and thrift cooperatives, are interested in encouraging the habit of savings among the members. Cooperatives make the members develop financial discipline by promoting small and regular savings and providing funds for productive activities.
Such savings are usually recycled to the cooperative itself, to the advantage of the members themselves.
5. Democratic Management
A civilized community is based on democratic values. All members are equal in decision-making regardless of the size of capital invested. This aim provides equity, responsibility and openness to the management.
Democratic control also promotes active participation and a sense of ownership by the members.
6. Social Welfare and Community Development
Cooperative societies tend to pursue social good beyond the economic objectives. They also help in the growth of the community through education, health awareness, job creation, and social equality.
Most cooperative groups are quite active in sponsoring the weaker sections of society, such as small farmers, artisans, women, and the poor.
7. Employment Generation
The cooperative societies create job opportunities locally. They offer long-term livelihood opportunities to both the members and non-members by establishing cooperative businesses like dairies, handloom units, and processing centres.
This goal assists in minimising unemployment and migration, especially in the rural regions.
8. Profits Distribution Fairly
The cooperative societies share surplus fairly and equally, unlike companies, where profits are shared according to shareholding. The profits are distributed among the members based on their involvement, or they are reinvested to promote the society.
This makes sure that there is equal distribution of economic benefits, which are in harmony with member contributions.
9. Self-Help and Self-Reliance
Utopian societies make members rely on their own self-sufficiency through mutual efforts, and not on external economic or business resources. This goal contributes to confidence, autonomy and sustainability.
Cooperatives allow the poor to help themselves through the management of their own economic enterprises.
Significance of Objectives in the Cooperative Model
Cooperative societies contrast with other types of business organisations in the achievement of their objectives. They are equally economic and socially responsible, hence they fit in the inclusive growth.
Cooperatives also help in equitable developmental levels and minimise economic disparities by ensuring that the welfare of the members is prioritised instead of the maximisation of profits.
Role of Cooperative Societies in India
In India, cooperative societies have been significant in other fields like agriculture, banking, housing and consumer distribution. The cooperatives are usually favoured by government policies because they have the potential of reaching the grassroots and enhancing participatory development.
They also work closely in their objectives with the national goals of financial inclusion, rural development and poverty alleviation.
Conclusion
The aims of the cooperative society lie in the aspects of mutual help, the welfare of the economy, the democratic management and social upliftment. The cooperative societies provide a special and inclusive model of organisation, because they put the interests of their members first, as well as the development of the community. In such a nation as India, where group work and social unity are crucial in the sustainability of a country, cooperative societies remain a good means of empowering individuals and building communities.
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