EXPLORING THE ECONOMIC SIGNIFICANCE OF COOPERATIVE SOCIETIES

ABSTRACT

The subject under consideration pertains to cooperative societies and their role in facilitating economic growth. The main objective is to explore the potential of cooperatives in promoting sustainable community development. Specifically, this investigation will examine how cooperatives can contribute to long-term ecological sustainability. A worker’s cooperative can be precisely defined as an organizational structure wherein the majority of the business is controlled by the workers. The decision-making process follows a democratic approach, adhering to the principle of "one person, one vote." Membership is open to as many workers as feasible, and the return on investment is limited to a predetermined percentage. Labor has traditionally been regarded as a dispensable component of production by capital, resulting in a lack of appreciation for the importance of labor relative to other factors. The company has leveraged its workforce to maximize profits, thereby consolidating its influence and accumulating wealth, all while evading full accountability for financial liabilities in the event of liquidation. Conversely, there has been a noticeable uptick in employees’ inclination towards adopting a novel strategy. Based on the study’s findings, the economic progress, innovation, and competitiveness of cooperatives depend on achieving two interconnected goals: 1) enhancing their capacity to meet the needs of their members, and 2) improving their operational efficiency.

FULL TEXT