DEVELOPING A NEGATIVE PARENTAL IDENTITY

their policies and making decisions. Men and women serving as elected representatives are accountable to the members who elected or appointed them. In primary co-operatives members have equal voting rights (one member, one vote) and cooperatives at other levels are also organized in a democratic manner where every member have equal to participate in decision making process of the cooperative.

i. Limited Interest on Shares: This Rochdale principle emphasized that all the profit realized from the cooperative business should not be distributed as dividends for members share capital. Instead, limited interest should be paid on share capital while the rest of profit realized should be re invested in the business while some part should be committed to members‘

education and statutory reserves fund.

ii. Patronage Refund: This principle encourages members to patronize the cooperative shop as refund payments were given to members based on the volume of their purchase. Rochdale equitable pioneers carefully recorded all transactions done by the members and at the end of the trading season, part of the profits made were distributed to members in proportion to the volume of business they did with the society.

iii. Cash Trading at Market Price: Sales of goods were done strictly on cash and carry basis. Credit sales were not condoned and the value of goods in the Rochdale shop was sold based on the prevailing market price.

iv. Sales of Pure and Unadulterated Goods: Unlike other competitors, the Rochdale Equitable Pioneers were selling goods not only on the prevailing market price but the goods offer for sale in their shop were of the high quality. This then built customer confidence in products of the Rochdalers which boost their sales turnover.

v. Political and Religious Neutrality: Politics and religion were not tolerated in the business of the society. This was to achieve group cohesion, solidarity and strength without discrimination among the members of the Rochdale society.

vi. Continuous Education of Members: cooperatives provide regular 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. This

principle was emphasized so as to keep members abreast of developments in the environment. It was also a way of preparing the members mentally of the challenges ahead. It also imparted on members the necessary skills for the cooperative tasks.

3.3 Reasons for the Success of Rochdale Equitable Pioneers

Apart from the Rochdale cooperative principles, there were some other good reasons that facilitate the success of Rochdale Equitable Pioneers;

these include:

i. Job description, analysis, classification and specification were carefully worked out, putting each member to contribute maximally in the area of their talent.

ii. Annual elections were held, quarterly reports were made, accounts periodically audited and fines imposed on slothful members.

iii. Principles of financial management were applied. For example, no member was allowed to undertake transaction from the beginning to the end. There was a sales man who sold but did not receive payment as a cashier was put there to receive payments, issued receipts and deposited the money with the secretary in the weekly board meetings.

iv. Sales daily needs products especially consumable items: Because if stocks were not sold, that meant funds that were tied down as well.

Increase in sales gave rise to increase turnovers; the pioneers knew all these. That was why right from inception only those items of necessity which would achieve quick turnover were purchased and put in the shop. These items were: bread, sugar, flour, butter, oatmeal, candles among others. Luxury goods and speculative purchase were put away.

v. Quality of Membership: The society was blessed with members that were knowledgeable about cooperation; the members were not only dedicated but enlightened. This enabled them to value the importance of collective action.

vi. Lessons from Past Mistakes of Pre Rochdale Cooperatives (Owenites): Experience is said to be the best teacher. The members learnt from the bitter experiences of the past earlier cooperatives that were established before them. Such mistakes include: credit sales;

absent from meetings, not keeping accurate records, sharing profits according to shareholding, dishonesty, and not reserving profits, members‘ apathy among others which contributed the failure of the early cooperatives.

vii. Passage of the Industrial and Provident Societies Act of 1852:

After eight years of the take off of the society, the Individual and Provident Societies Act of 1852 were passed into law. The law then recognized the co-operatives as a distinct way of doing business,

protecting their property, authorized dividend payment and ensuring that limited interest was paid on shares.

SELF-ASSESSMENT EXERCISE

Consumer Co-operatives are not doing well in Nigeria. But the Rochdale Equitable Pioneers took off and became the first successful Consumer Co-operative Society. How can the characteristics of Rochdale Equitable Pioneers we have discussed so far fit into the operations of consumer cooperatives that you are aware of?

4.0 CONCLUSION

The Rochdale equitable pioneers were able to succeed as they put into practice effective principles that guided their business transactions and dealings with their members. Based on the experience and the lesson learnt from the mistake and the failure of the early or pre Rochdale cooperatives, the Rochdale equitable pioneers propounded set cooperative principles that were strictly observed and bounded all members.

The pounded set of cooperative principles called brought upon success to Rochdale euitable pioneers business enterprise and they were able to expand and diversify into other businesses like production; housing;

rendering services etc. Due to their success recorded, the cooperative movement was able to spread to all part of the world and the principles propounded by the Rochdalers were adopted for the practice of cooperative business all over the world.

5.0 SUMMARY

Prior to this unit, we discussed reasons why the earlier co-operatives formed before Rochdale society of equitable pioneers failed, then this particular unit expand our understanding on how the first known successful cooperative society in world was established and the factors that enhanced their success.

6.0 TUTOR-MARKED ASSIGNMENT

1. Discuss the critical factors that featured prominently in the collapse of the early modern co-operative organizations.

2. Explain the relevance of the strategies adopted by the Rochdale Equitable Pioneers in the formation and launching of their cooperative Societies.

3. Described the factors that contributed to the success of Rochdale Equitable Pioneers

7.0 REFERENCES/FURTHER READING

Ebunu, F. l. (2006). Principles of Co-operation. Lagos: NOUN.

Dorothy Greaves, Original Members of the Rochdale Equitable Pioneers Society

Limited, availableat http://www.rochdalepioneersmuseum.coop/

wp-content/uploads/2012/03/rochdalePioneersOriginalMembers.pdf.

Rochdale Pioneers Museum, Toad Lane Brochure, The Home of Co-operation (1995) available

athttp://www.rochdalepioneersmuseum.coop/wpcontent/uploads/

2012/03/toadLaneBrochure_English.pdf.

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UNIT 4 FIRST ICA 1937 REVIEW OF THE ROCHDALE