Enhancing The Performance Of Co-Operative Societies Through The Application Of Ica Co-Operative Principles (A Case Study Of Selected Societies In Enugu South Local Government Area Of Enugu State)

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Enhancing The Performance Of Co-Operative Societies Through The Application Of Ica Co-Operative Principles (A Case Study Of Selected Societies In Enugu South Local Government Area Of Enugu State)


The study was conducted to enhance the Performance of Co-operative society through the Application of co-operative principles (A case study of Selected Co-operative in Enugu South Local government of Enugu State).

In pursuance of thi9s investigation research objectives and were formulated.  Both primary and secondary data were collected, and the data were then presented, analysed interpret using textual, tables etc.

Based on the above, it was found out that no genuine co-operative could do without the co-operative principles.  The negligence over the principles of co-operative had made the co-operative societies not to function the way it ought to.  In carrying out the research, it was found out that to enhance the performance of co-operative societies.  Through the application of the principle interpretation of the principle should be well known to members.  It should not be ignored.  Members of the co-operative should show concern to the principles of co-operatives.

A copy of the co-operative law should be made bay and well understood by the members.

Constant supervision is important in order to keep the society going.  There is every tendency to teach and educate the members on co-operative education.

With reference to the funding, the researcher recommends the above solution to be applying in co-operative organisation and with that there should be increase in quantity in those societies.




1.1       Background of the Study

1.2       Statement of the Problem

1.3       Objective of the Study

1.4       Significant of the Study

1.5       Scope and Limitation of Study

1.6       Definition of the Term

1.7       Research Questions



2.1       Nature of co-operative Societies

2.2       Evolution of Co-operative Principle

2.3.1    Co-operative Principles

2.3.2    Voluntary and Open membership

2.3.3    Democratic Member Control

2.3.4    Member Economic Participation

2.3.5    Autonomy and Independence

2.3.6    Education, Training and Information

2.3.7    Co-operation among Co-operative

2.3.8    Concern for Community

2.3.9    Important of Principle

2.3.10              Problem of Co-operative Principle



3.1       Research Methodology and Design

3.2       Sample Size and Sampling Technique

3.3       Sources of Data

3.4       Method of collection

3.5       Method of Analysis



4.1       Data presentation

4.2       Data analysis

4.3       Data Interpretation



5.1       Summary

5.2       Recommendations

5.3       Conclusion






The origin of Modern Co-operative Societies can be traced back to the middle 30s.  This followed the commission of the stick land report in 1934 on the enactment of co-operative Ordinance was in 1935.  Since then a lot of interests have continued to be generated in this form of business ventures.  The various government and co-operative superior have made some series of an attempt to encourage includes, the revision of co-operative laws and regulations, encouraging the public to form and join co-operative.  Introduction of Co-operative division in the Ministry too place.

A co-operative principle refers to basic truth or general law determining the existence and regulation the conduct of an organisation and distinguishing it from other systems.  The co-operative principles are fundamental and universal rules laid down by co-operative leaders to guide their conduct and lead them on the enduring and successful performance.  The International Co-operative Alliance (ICA) described them as norms they should prevail in the co-operative regardless of what they do and where they exist.  In the previous attempt, which was made by the co-operative superiors in seeing that co-operative improve its quality, by having a principle guiding them.  Those people and their principle are as follows:



They organized a successful consumer co-operative society though it was accepted before that of 1966, which was as a result of amendment.

The International Co-operative Alliance (ICA) a non-governmental association – whose function is to unite represents and serves co-operatives worldwide.  The ICA purposes were to promote co-operatives.  Co-operative Organisation was founded in London in 1885 for twelve countries – Argentina, India, USA and nine European countries.  The headquarters was transferred from London to Geneva, Suitzerland in 1982 to give co-operation a more international partisan image.

The ICA produces a new constitution Tokyo in 1992.  According to article 2 of the constitution (RIC Vol. 852 and 3, 127), the ICA pursue its objective by serving as a forum for exchange of experience and a source of information on co-operatives.

Another Mr. Owen, the Philanthropist, he treated his workers with respect and humility.  He paid their wages, reduces their hours of work, kept his factory clean, put a stop to child’s labour, and started school for workers children.  He opened the first Nursery school in Europe.  He allowed his workers leisure hour for games and recreation.  He used part of his welfare for his workers.  In believing that people work best if they are healthy and happy, he was based on capitalist.  All these he did from 1771 – 1859 after he failed.

Dr. William King (1786 – 1965), he was a medical practitioner in Brighton, an Urdent co-operator and a follower of Robert Owen.  William King made some corrections from Robert Owen’s system.

He advised workers against Owens utopian home colonization schemes, which he considered too big, too capital, intensive, too unmanageable.  People accepted William’s corrections and organized in Britain co-operative shops from William’s idea.  They tried very well before the Rochdale pioneers which came up in 1844, a group of 28 workers.  They opened up a retail co-operative shop based on sound idea and correct business practice.  They adopted the correct principle and omitted the wrong one.  They started with pre-member education based on weekly discussion meetings lasting several months.  Members made some contributions.  The pioneers were men of practical common sense, not idle dreamers.  They had their dreams to become their masters.  They kept strict account of every transaction and declared their balance sheet quarterly.  This method led them to success and they became a model for co-operatives all over the world.  After this, came the ICA principle, which is the latest up to date.  There are some amendments done from Rochdale principle, which was used for the ICA 1995 latest principle, which took place in Vienna Austria.


The problem of this study is one, which the researcher is interested in, and wants to examine it in order to find out solution.  Co-operative societies like other business organisation co-operative societies have principles that is guiding their practice.  Co-operative societies that apply c-operative principle in their practices don’t have problems and will always experience enhanced performance.  Co-operative principles cannot be over emphasized.  The less application of the co-operative principle is evidence in the slow growth of con-operative societies.



The researcher intends to find out how the co-operative principles are being applied in co-operative societies and the factors that are militating against the principle.



–     To find out the outcome of the application of the co-operative principles in co-operative societies.

–     To examine the extent of the application of the co-operative principles by sampled societies.

–           Where principles are not applied to find out the reasons.

–     To find out various problems encountered by co-operative societies, which hinders them from applying the co-operative principles.

–     To make recommendation on how to enhance the performance of co-operative principle in co-operative societies.


The significance of this research include:

i.    The study will assist in educating members and board of Directors of Co-operative Societies on co-operative principles.

ii.   It is important to institution, researcher scholars and the general public.  Thus, it will be a resource material for further research.

iii.  It will be significant to policy makers who may be interested in formulating policies on co-operative.

iv.  It is also important to the researcher, as it is partial requirement for the award of HND in Co-operative Economics and Management of IMT, Enugu.

v.   The study will help in development of Co-operative Societies in Local, State and International levels.


For clarity purpose, elimination of confusion of any kind and proper understanding of this study, the following definition of terms is necessary.



A principle is a basic truth or general law determining the existence and regulation the conduct of an organisation and distinguishing it from other system (Omoha p. 98 – 25)


It is an autonomous association of persons limited voluntarily to meet their common economic, social and cultural needs and aspiration through a jointly owned and democratically controlled enterprise.


It is the use, observation of rules and regulations norms given for guidance in a thing or organisation.


For the purpose of the research, the following questions were used:

i.    Has the principles contributed to the growth and development of your co-operative society?

ii.   Does the members of your society practice the principle the way it should?

iii.  As a member of co-operative, does your leaders educate the members on principle of co-operative?

iv.  Has the co-operative principle and important role to play in co-operative society?

v.         Is there any problem generated in application of the principles?

vi.        Hadalhat is the principle to the co-operative society?

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