A history of co-operation

01 January 2020

Our Co-op finds its roots in a simple but powerful idea: people can achieve more and meet shared needs when they work together.

The first successful co-operative, established by the Rochdale Pioneers in 1844, went on to evolve into one of the world’s most enduring business models and international movements, built upon mutual ownership, democratic participation and collective benefit.

The origins of co-operation

During the early part of the Industrial Revolution, many working people faced difficult living and working conditions. Wages were often low, employment was uncertain and access to affordable, good-quality goods could be limited.

Inspired by the philosopher and industrialist Robert Owen, people were searching for a way to do things differently. In 1844, 28 working men established ‘The Rochdale Society of Equitable Pioneers’ and used their combined buying power to open a small shop on Toad Lane in Rochdale.

It sold basic household staples such as flour, butter, sugar and oatmeal. Members had access to better goods at fair prices for their own benefit, and not to the advantage of the wealthy or those with a monopoly.

This modest venture, built upon fairness, accountability and democratic participation, created a practical framework for member-owned enterprise that would influence organisations around the world for years to come.

Today’s Co-operative Values and Principles find their roots in those first drafted by the Rochdale Pioneers.

Building a movement across Britain

The success of the Rochdale society encouraged other communities across Britain – mostly in industrial towns and growing urban centres - to establish similar organisations, expanding far beyond grocery retailing.

Co-operatives invested in manufacturing, agriculture, housing and other ambitions to support their local communities. They also placed great emphasis on education - informed and engaged members were considered an essential part of a co-operative’s democratic governance.

Strength through collaboration

As local societies expanded, many recognised the advantages of working together. Combining their purchasing power allowed them to secure better prices and improve the efficiency of their supply chains.

Larger wholesale organisations were established, supplying goods and services to individual societies. In 1863, independent co-operative societies formed the Co-operative Wholesale Society (CWS) to supply goods to the expanding network of stores founded on the Rochdale model. This business went on to become The Co-operative Group.

By 1914, ‘The Co-operative Movement’ had grown to include more than 1,400 independent co-operative businesses across the UK.

International organisation and shared principles

Co-operative enterprises were also emerging across Europe, presenting scope for greater international collaboration. In 1895, representatives from several countries came together to establish the International Co-operative Alliance (ICA).

The ICA provided a forum through which co-operatives could share experience, promote common values and support the development of the movement worldwide. Today, it is recognised as the leading global body for co-operatives, representing more than three million organisations and 1.2 billion members.

Co-operatives in the twentieth century

During the twentieth century, as well as being considered responsible for major economic institutions, the co-operative movement became associated with broader social goals.

Markets became larger and more competitive, which saw many co-operatives merge or form new partnerships with one another. These changes helped achieve greater scale while preserving the principle of member-ownership.

The co-operative model today

Modern co-operatives operate in an extraordinary range of sectors, including retail, housing, banking, insurance, agriculture, healthcare, renewable energy and technology. Although their activities vary, they continue to be guided by a shared commitment to democratic control and member benefit.

In 2000, The Co-operative Group was formed following the merger of the Co-operative Wholesale Society and Co-operative Retail Services. This was followed in 2007 by the merger of United Co-operatives with The Co-operative Group.

The Co-op Group includes a leading convenience retailer and funeral business, as well as a major insurance company and legal services business. ‘Co-op Wholesale’ – our B2B arm - supplies independent retailers and corporate partners with products, logistics support, buying power and retail expertise.

Across our group, we follow internationally recognised Values and Principles.

Our Values

  • Self-help – Our members join together and making a difference, whether it’s supporting a national charity or working in their local community.

  • Self-responsibility - Every member does their bit, making us a success by supporting our activities and using our products and services. They encourage others to support them too.

  • Democracy - All members at The Co-op Group are equal. Voting power can’t be bought – it’s one member, one vote.

  • Equality - Our Co-op gives all members an opportunity to get involved, like campaigning for fair trade.

  • Equity – We are committed to fairness.

  • Solidarity - Together we’re stronger, so members join together to help their Co-op achieve even more.

Our Principles

  • Voluntary and open membership - Anyone over 16 who likes the way we do business can join our Co-op.

  • Democratic member control - Any member can vote if they’ve spent a certain amount in a year.

  • Member economic participation - We want every member to be a loyal customer. It’s our responsibility to give them a good reason to be.

  • Autonomy and independence – Our Co-op Group is only accountable to our members, not shareholders.

  • Education, training and information – The Co-op Group gives members what they need to play a full part in their business, including all the information they need to make informed choices - whether that’s buying a funeral plan or a loaf of bread.

  • Co-operation among co-operatives – We work with and supports other co-operatives in lots of areas. For example, we jointly buy from our suppliers to keep prices lower for customers.

  • Concern for the community – The Co-op Group uses profits to support the local communities we serve and give back to members.

Principles like these distinguish co-operatives like ours from conventional investor-owned businesses. While financial security remains essential, the primary purpose of a co-operative is to serve its members and create long-term value for its communities.

Sources:

About International Cooperative Alliance | ICA The Rochdale Pioneers | ICA Who we are - Co-op Co-operative Wholesale Society | British organization | Britannica International Co-operative Alliance | UK Society for Co-operative Studies Special Collections Subject Guides and Articles | The Co-operative Heritage Trust