Cooperative Course: Linking Economy & Modernity

• Cooperative courses are compulsory to link the economy with the traditional aspects of modernity in terms of economic institutions.
• Cooperatives in many countries have lifted the lives of the poor.

Subject Learning Outcomes

• The objective of the subject includes hard skills related to increased cognitive ability
• The objective of the subject includes understanding the cooperative philosophy, principal, and value.
• The objective of the subject includes understanding the history of the cooperative movement.
• Objective includes understanding the practices of cooperatives
• Soft skills relate to personality development
  • Developing qualitative analytical skills
  • Development of presentation skills / public speaking
  • Developing group collaboration skills
  • Developing confidence
• Students gain awareness of ethics and social responsibility as part of the course
• Students are able to demonstrate knowledge of relevant social and ethical considerations

Dynamics of Learning

• The cooperative is a 2 credit course consisting of 10 lecture sessions
• Students need to fulfil a minimum attendance of 80% of lectures and tutorials to qualify for the final exam, as per faculty regulation.
• Students should read topic materials before lectures

Syllabus Road Map

• Week 1 covers introduction and history of cooperatives via lecturing and discussion
• Week 2 covers cooperatives principles and value via lecturing and discussion.
• Week 3 covers business ethics and social responsibility via lecturing and discussion
• Week 4 covers introduction to cooperative economics via lecturing and discussion.
• Week 5 covers cooperative management via lecturing and discussion
• Mid-term test is present.
• Week 6 has assignment explanation (in groups) via lecturing and discussion.
• Weeks 7-10 cover case studies via presentation and discussion
• A group paper is a substitute for the exam.

Assessment Method

• Assignment before midterm is worth 15% of the final grade, and subject to later decision
• Midterm examination is worth 35% of the final grade
• Final examination (group paper) is worth 25% of the final grade
• Assignment and presentation is worth 25% of the final grade
• All assignments will contribute to a total of 100% of the final grade
• The final paper should be a project, business plan, or cooperative visitation discussed in class.

Organizational Matters (EMAS 2)

• The course syllabus is available.
• There are recommended readings and examples
• There is a 7th edition APA referencing guide
• There will be weekly PowerPoint slides
• There will be assignments, audio and video materials
• Contact the lecturer for questions

Cooperatives Definition

• Cooperatives ensure that a cooperative isn't mixed up with other enterprises or organizations.
• Values serve as a reference for every stakeholder
• Principles act as guidance in operating a cooperative on a daily basis
• Principles are a unity so no principle is more important than the others

Ace Hardware Corporation

• Ace Hardware is a retailers' cooperative, founded in 1924
• It is a private comapny, dealing in hardware stores
• Ace Hardware was founded in Chicago, Illinois, USA.
• Founders include Richard Hesse, E. Gunnard Lindquist, Frank Burke, Oscar Fisher, William Stauber.
• The headquarters are in Oak Brook, Illinois, USA.
• There were over 5,200 locations in 2019

Royal FrieslandCampina N.V.

• Royal FrieslandCampina N.V. is a cooperative founded on December 31, 2008
• The Industry is dairy products and area served is worldwide
• The headquarters are in Amersfoort, Netherlands
• Hein Schumacher is the CEO
• Employee count is approximately 22,000
• FrieslandCampina was founded in 1922
• Koninklijke FrieslandCampina N.V. is the parent organization

Other Cooperatives

• Real Madrid is owned by members (socios)
• Manchester United F.C. has some shares that are listed on the New York Stock Exchange.
• America's electric cooperatives are energy providers for over 20 million American homes, businesses, farms and schools in 48 states.
• Cooperatives power 56% of the nations landmass

Historical Context

• In Fenwick, Scotland, weavers began selling handled oatmeal at a discount in John Walker's cottage in 1761
• The Rochdale Equitable Pioneers Society, founded in 1844, is considered the first modern cooperative society: Located in the north of England
• The Rochdale Pioneers implemented shoppers being treated with honesty, openness, and respect.
• The Rochdale Pioneers gave shoppers a democratic right to have a say in the business by becoming a member and contributing to the profits
• Friedrich Wilhelm Raiffeisen and Franz Hermann Schultz-Delitsch developed a cooperative model in Germany, originally forming credit unions in 1862.

International Co-operative Alliance (ICA)

• The International Co-operative Alliance was founded in London, England on 19 August 1895
• The 1st Co-operative Congress in attendance included delegates from co-operatives from several countries
• The representatives established the aimas to provide information related to co-operatives
• The Alliance survived both World War I and World War II
• The Alliance committed to peace and remained politically neutral

Cooperatives in Indonesia

• 1896: R. Aria Wiriatmaja established Bank Penolong dan Tabungan (Hulp end Spaarbank) as a pioneering cooperative in Purwokerto to help low-level government employees
• Sarekat Islam founded in 1909 served as a cooperative for Indonesian nationalism
• 1945: Article 33 of the Constitution (UUD) mandates structuring the economy based on family-like principles
• In 1950 Indonesia inherited a Dutch debt and favored the cooperative component for the economy.
• By 1956 Indonesia numbered 12,090 cooperatives, inefficient operations and corruption hurt cooperatives.
• Presidential Instruction No.4/1973 created village level cooperatives
• There was Law No.12/1992 on Cooperatives
• From 1998-1999 Adi Sasono became Minister of Cooperatives & SMEs