Cooperatives are Run
by and for Members
Members (customers)
who create and own a
cooperative business also
run the business. In some
cases, businesses themselves
organize a cooperative, such
as a supply or transportation
cooperative. Members typically
pay dues or membership
fees to the co-op. Members
also own a share of stock in the co-op. Members decide what kind of co-op
they want, where they want it to operate, and overall business priorities.
Because members make decisions for their own benefit as customers, they
will choose priorities that privately-owned companies may not. A co-op may
continue offering a necessary service even if it doesn’t make money. In a
cooperative, members are welcome to share their ideas and voice their concerns.
Members are able to serve on the co-op’s board of directors. Members
meet once a year to learn about the co-op’s operations. Each member
gets one vote, so no one has more influence than anyone else. At this
meeting, members elect people to the board of directors. These directors
meet more often during the year to make decisions. A director represents
the members to make sure the cooperative is working for them.
Directors provide guidance to the co-op manager. Directors also hire the manager.
In turn, the manager hires employees to do the different types of work at the co-
op. Cooperatives can have a few or hundreds of employees. Each employee has a
job to do. These employees may do a certain type of work, such as drive a truck or
work behind a counter. Managers handle the day-to-day operations of the co-op.
Together, the members, directors, manager, and employees work as a team
to make sure the business is successful. Together, these people use the
Seven Cooperative Principles to help guide their business decisions.
6 - Colorado Agriculture in the Classroom
What Did We Learn?
Fill in the blank with one word
to complete each sentence.
1. A supply cooperative
________________________
things to sell to its members.
2. A marketing cooperative
________________________
things for its members.
3. A service
cooperative provides a
________________________
to its members.
Select the correct answer.
4. Cooperative
members are also:
A. customers
B. truck drivers
C. doctors
5. Members elect
A. the manager
B. the employees
C. the directors
6. Directors are
A. members
B. responsible
for decisions
C. Both A and B