The Present Application of the Rochdale Principles of Co-operation (1937)

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3. Conclusions and Recommendations

In concluding their Report the Special Committee desire to express their conviction that The Enquiry into the Present Application of the Principles of Rochdale Co-operation, decided upon by the Congress of Vienna, has confirmed - what the superficial evidence of general observation and knowledge gained from reports and publications of National Movements has always manifested - that the Consumers' Co-operative Movement of the world is generally, but insufficiently and incompletely, based upon the Principles laid down by the Weavers of Rochdale in the statesman-like constitution and subsequent practice of the Rochdale Society of Equitable Pioneers in 1844. It was inevitable that within the spheres of forty national movements, each interpreting standard doctrines according to their mental or racial habitudes, and influenced, to however small an extent, by the legislative and commercial customs of their respective countries, there should develop some variations in the application of even such universally applicable Principles as those of Rochdale. Taking a broad view of the whole field of Co-operation as revealed in the replies to the Questionnaires, and with the reserve that in a few instances and in some countries rather acute divergences have been revealed, the Committee feel that there is good ground for satisfaction that the character of mutuality and solidarity of our peculiar economic system has been so fully maintained. It would appear that these Principles contain the essential principle of life which is the highest test of their genuineness. Today the basis of Rochdale exhibits the essential elements of a new economic system capable of replacing, and we believe destined to replace, the evils of the competitive capitalistic system in civilised society.

We have endeavoured to exclude matters that appeared to us extraneous to the subject matter of the enquiry, with the result that the Report deals only with the questions of first importance to co-operation. We have endeavoured to place the ideal basis of society outlines in the `Law First' of the Rochdale Rules, and also its historic framework, in correct perspective as secondary to the main Principles, without which the true co-operative basis cannot be assured.

The Committee, having now had the fuller opportunity of examining the additional evidence provided by the Wholesale Societies of Consumers, Workers' Productive Societies, Agricultural Co-operative Societies, Credit Societies and Co- operative Banks, desire to express their conviction that the seven Principles as set out at the beginning of this Report still represent the essential basis of the Rochdale System, and that nothing in the modern developments of industry and commerce, or changes in economic method, has diminished their integrity.

In the course of the survey of these Principles, the Committee have indicated their view as to the necessity of a less rigid interpretation of certain Principles in those types of organisations which, in their constitution and operations, while genuinely co-operative, necessarily differ from the simple form of consumers' societies for whose conduct the Rochdale system was established.

They are further of opinion that it is necessary to express the Principle of `Dividend on Purchase' in a generalised form more in consonance with the variety of activities to which it is sought to apply it. They, therefore, submit the following as calculated to meet the needs of the case.

The Committee are of opinion that there should be some discrimination in the importance to be attached to these seven points in deciding the essential co-operative character of any Society or organisation. They suggest that the observance of co-operative principles depends on the adoption and practice of the first four of the seven Principles, viz.,

1. Open Membership,
2. Democratic Control (One Man, One Vote)
3. Distribution of the surplus to the members in proportion to their transactions
4. Limited Interest on Capital.

In the opinion of the Committee, the remaining three Principles, viz.,

5. Political and Religious Neutrality
,
6. Cash Trading
7. Promotion of Education

while undoubtedly part of the Rochdale System, and successfully operated by the Co-operative Movement in the different countries, are, however, not a condition for membership of the I.C.A.