Project Materials

DEMOCRACTIC CONTROL IN COOPERATIVE

Chapter one

INTRODUCTION

1.1 Background of the Study

Democratic Control is a democratic organisation managed by its members, who actively participate in policy development and decision-making. Members are the source of all authority in cooperatives, and members are the fundamental unit of democratic control.

Decisions in democratic control are decided jointly by members, regardless of their financial consideration or position, and no quantity of shares or other capital interest that he may have in the society will give him a higher vote/control than other members.

The control, as previously stated, is in the hands of members, whose loyalty and active participation are required in developing policies and making decisions.

According to Onuoha (2002), men and women who serve as elected representatives have equal voting rights (one member, one vote), while cooperatives at all levels are democratically organised and participate in decisions that impact their society.

The Democratic Principle arose from the Rockdale equitable pioneers, who recognised that every member’s interest must be addressed and that each and every decision must be taken with the goal of increasing member loyalty. Many scholars regard this democratic ideal as the most important guiding principle for cooperation.

The belief behind this principle is that every member is equal as a person and as a human being seeking to be held. Cooperatives are distinguished by the belief that they belong to its members and have the right to control them in such a way that the organisation functions as a democratic institution.

The supreme authority is placed in all members, regardless of their financial situation, which increases member loyalty because they know the society appreciates and accommodates them. This research is necessary because it improves member loyalty by applying the democratic control paradigm.

A study of two (2) societies, specifically Surulere Cooperative Society and National Archives Multipurpose Cooperative Society.

The research will look into how members coexist, how organs of society coexist, who improves member loyalty, who makes laws and norms for the society, and what the criteria are for determining member loyalty.

1.2 Statement of the Problem

Improving member loyalty through democratic control cannot be overemphasised. When correctly executed, cooperatives should serve as a roadmap to enable/improve member loyalty.

There is a chance of success for society. However, it is evident that the majority of these procedures are not followed, resulting in significant problems in improving member loyalty, and this research is being conducted on that basis.

1.3 PURPOSE OF THE STUDY

1. To determine member loyalty using the principle of democratic control.

2. The problem of member loyalty will be investigated using the democratic control principle.

3. To determine the characteristics that influence member loyalty.

1.4 RESEARCH QUESTIONS.

How much can member loyalty be improved by implementing the Democratic Control principle?

What effect can be derived from the use of democratic control?

What are the challenges associated with applying the democratic control principle?

1.5 Significance of the Study

The study investigates how the democratic control principle can be used to improve member loyalty. The importance of the study cannot be overstated, since this research effort will serve as a reference for prospective students to borrow from.

This research or finding will be very effective in enacting policies that will help regulate the activities of the types of cooperatives in question in order to improve member loyalty to the general public who are interested in cooperatives;

the results will be used as a foundation for the formation of viable cooperatives to improve member loyalty. It will increase knowledge of the use of democratic control while also enhancing member loyalty.