particularly the national cooperative organizations NACOs including KUSCCO

Particularly the national cooperative organizations

This preview shows page 18 - 21 out of 148 pages.

particularly the national cooperative organizations (NACOs, including KUSCCO, KERUSSU, CAK, CIC, and the Cooperative Bank of Kenya) also deserve mention for their unwavering support and cooperation during the year. John M. Mwaka Chief Executive Officer
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The SACCO Supervision Annual Report, 2017 Page | 18 CHAPTER 1 THE GLOBAL PERSPECTIVES OF CO-OPERATIVES 1.0. ORGANIZATION OF THE CO-OPERATIVE SECTOR IN KENYA 1.1. THE CO-OPERATIVE MODEL Co-operatives are defined as autonomous association of persons united voluntarily to meet their common economic, social, and cultural needs and aspirations through a jointly owned and democratically-controlled enterprise. They are driven by universally acknowledged core values, ethical beliefs and principles, which form the hallmarks of their unique identities, particularly from other conventional businesses. Figure 1: Co-operative Ethical beliefs Figure 2: Co-operative Core values Source: International Cooperative Alliance The core values in the co-operative movement include Self-help, Self-reliance, Self-responsibility, Democracy, Equality, Equity and Solidarity, while the ethical beliefs that drive the co-operative enterprises include Honesty, Openness, Social Responsibility and the need to care for others . At the heart of these values and beliefs, is that cooperatives are geared towards the promotion of the welfare and socio-economic interest of their members; and as such they are not for profit. To put in to practice these values and belief, cooperatives all over the world organize themselves and manage their affairs by the observance of seven (7) international principles of the cooperative movement. Table 1 provides a highlight of these principles.
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The SACCO Supervision Annual Report, 2017 Page | 19 Table 1: The International Cooperative Principles PRINCIPLE KEY TENETS OF THE PRINCIPLE 1 Open and voluntary membership Membership of a co-operative enterprise must be voluntary and available without artificial restrictions or any social, religious or political discrimination to all persons who wish to benefit from co-operative membership and are willing to accept the corresponding responsibilities. Conversely, members who wish to resign from a co-operative enterprise are free to do so without any artificial hindrances. 2 Democratic member control The control of the co-operatives is based on democratic principles. Thus, in all matters that involves voting in the management, the principle of 'one member one vote’ irrespective of the number of shares held by a member applies. This is in recognition of the fact that people working together to achieve a common objective should have equal say in the joint enterprise. It contrasts to the situation with ordinary corporations where control of the enterprise usually depends on the amount of capital contributed by a shareholder ‘one share one vote’ - or the types of shares held, which may give preferential voting powers.
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