Who runs the co-op?

Everyone has a role to play. Because the co-op is formed by the members for the members, the membership, as a whole, guides the Co-op.

Members exercise their democratic power at annual or special general meetings – which every member is urged to attend – it’s a member’s responsibility. The annual general meeting is a critically important event in a co-operative society.

It is at this meeting that the members appoint the Board of Directors from amongst the membership, choose the auditors, review and approve the financial statements as well as the Board’s and manager’s reports. The annual meeting is the main event where members learn about the well-being of their co-op and its plans for the future.

The Board of directors is elected from and by the members to represent their views. Terms are typically for three years with a maximum of three consecutive terms. The Board members are entrusted with the stewardship of the co-op on behalf of members – they are required by law to guide the Co-op in the best interests of the association.

The Board directs the management of the Co-op by planning the long term vision of the Co-op as it applies to members’ and the community’s anticipated needs.

The Board also sets the terms of reference for a variety of committees which generally provide a liaison between the Board, management, members and the community. Typical committees include Member Relations Committee, Environment Committee, Communications and Public Relations Committee, Finance Committee, etc.

The Board may also create ad hoc committees to help with one-time issues such as planning an expansion, organizing a major anniversary for the co-op, etc. Any member can be a member of a committee, particularly if they bring a certain expertise to the group.

The Board is also responsible for selecting and hiring a manager who is responsible for the day-to-day running of the co-op – merchandising, hiring other staff, store operations.

The Board typically meets monthly to discuss matters relating to the affairs and business of the co-op. Meetings might include loan approvals, membership application approvals, planning, etc.   Top of Page

What values guide Co-op operations?

Co-operatives are based on the values of self-help, self-responsibility, democracy, equality, equity and solidarity. In the tradition of their founders, co-operative members believe in the ethical values of honesty, openness, social responsibility and caring for others.

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What are the Co-operative Principles?

The co-operative principles are guidelines by which co-operatives around the world put their values into practice.

1st Principle: Voluntary and Open Membership
Co-operatives are voluntary organizations, open to all persons able to use their services and willing to accept the responsibilities of membership, without gender, social, racial, political or religious discrimination.

2nd Principle: Democratic Member Control
Co-operatives are democratic organizations controlled by their members, who actively participate in setting their policies and making decisions. Men and women serving as elected representatives are accountable to the membership. In primary co-operatives members have equal voting rights (one member, one vote) and co-operatives at other levels are also organized in a democratic manner.

3rd Principle: Member Economic Participation
Members contribute equitably to, and democratically control, the capital of their co-operative. At least part of that capital is usually the common property of the co-operative. Members usually receive limited compensation, if any, on capital subscribed as a condition of membership. Members allocate surpluses for any or all of the following purposes: developing their co-operative, possibly by setting up reserves, part of which at least would be indivisible; benefiting members in proportion to their transactions with the co-operative; and supporting other activities approved by the membership.

4th Principle: Autonomy and Independence
Co-operatives are autonomous, self-help organizations controlled by their members. If they enter into agreements with other organizations, including governments, or raise capital from external sources, they do so on terms that ensure democratic control by their members and maintain their co-operative autonomy.

5th Principle: Education, Training and Information
Co-operatives provide education and training for their members, elected representatives, managers, and employees so they can contribute effectively to the development of their co-ops. They inform the general public – particularly young people and opinion leaders – about the nature and benefits of co-operation.

6th Principle: Co-operation among Co-operatives
Co-operatives serve their members most effectively and strengthen the co-operative movement by working together through local, national, regional and international structures.

7th Principle: Concern for Community
Co-operatives work for the sustainable development of their communities through policies approved by their members.

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How is a co-op financed?

There are several ways a co-operative is financed:

Share capital: 
Members invest share capital (there can be various levels and timetables for investing share capital – see your co-op’s bylaws for details) that is used for capital investments – mostly for purchasing buildings and equipment that permit the co-operative to fulfill its members needs. Members therefore invest to ensure the co-op can provide the goods and services it requires. Because invested share capital is seldom enough to pay for all capital needs, the level of investment by members also serves as a measure of commitment by members to attract other lending sources such as credit unions or banks – who will lend or not based on members’ commitment to their co-operative. In this sense, invested share capital also serves to ensure member commitment to the co-op, who will continue supporting the co-op through patronage in order to protect their investment. 
Generally speaking, members purchase one share once they join and contribute either small weekly sums or invest all or a portion of patronage dividends into share capital until the maximum is reached (see your co-op’s bylaws for details). In another departure from capitalistic enterprises, all members, regardless of their level of investment, get one vote at annual or special general meetings.
In consumer co-ops, no interest is paid on invested share capital, although some co-ops have provisions for ‘loan capital’ that pays limited interest. Members generally get a return on their investment through savings at the checkout or the patronage dividend.

Margins or mark-ups: 
Co-ops are like other businesses in that the products they sell on store shelves are ‘marked up’ to cover expenses and at least to break even at the end of the year. In that sense, co-operatives are similar to other retail stores. However, when co-ops make a profit, a portion of the funds are distributed back to members in proportion to their purchases (in a conventional co-op) and/or reinvested back into the business for such things as paying down long-term debt, contributing to reserves, lowering shelf prices, etc.

Loans, trade accounts: 
Co-ops are also similar to other retail businesses in that they must borrow money to help finance capital expenditures over a long period of time. Should the co-op default on its loans and become insolvent, members’ losses are limited to their invested share capital. And like other retail businesses, co-operatives set up trade accounts with suppliers which must be paid on regular intervals

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What are the benefits of joining a co-op?

There are many benefits to being a member-owner of a co-op. 
In all co-ops:

The following benefits vary depending on the size of your local co-operative. They include, but are not limited to, the following:

Who makes Co-op private label brands? 

All co-op private label brands are made to Co-op’s strict standards for product quality and value by
established national and regional manufacturers. They are all tested for quality and value and carry a 100% satisfaction guarantee - no questions asked.  Top of Page

Do co-ops have their own 'store brands'?

Yes they do.  In fact, co-operatives were one of the first food retailers to establish their own private label brand.

Some of the most well-known Co-op brands are Co-op, Co-op Gold, Harmonie, Country Morning, Atlantic Tender Beef and Atlantic Tender Chicken.  The latter two are produced entirely in Atlantic Canada and are more than comparable to similar products produced elsewhere.  You'll also find Co-op and Sonic petroleum and automotive products in Co-op gas bars and stores.   Market Town products are the latest store brands to be introduced in Atlantic Canada and feature excellent value, freshness and quality.  Top of Page