Legal and social recognition of cooperative values and principles as identifying features of cooperatives
Abstract
The cooperative values and principles expressed in the 1995 International Cooperative Alliance Declaration on the Cooperative Identity and in the 2015 Guidance Notes are inherent to all entities with a mutualist purpose and organization. Since its inception, cooperatives have adopted the organizational and operational rules of mutual aid societies and associations, even before having their own regulations. Although separate legislation has not been necessary for cooperatives to develop, it is desirable that laws authorize, regulate, and promote their establishment and operation. In Spain, cooperatives, as well as their mutualist nature and their values and principles, have enjoyed general legal recognition since the 1931 Cooperatives Law, both by the State and by the autonomous communities. The Spanish Constitution of 1978, in its Article 101 of the Constitution, provides for the establishment and operation of cooperatives. 129.2 ordered the public authorities to promote cooperative societies through appropriate legislation. This was interpreted at the time by the legislator as the need to improve the application of the cooperative principle of member participation in the governance and control of the cooperative in an effective and not merely formal manner, as this was the characteristic that was most affected at that time. Our study reveals that the identifying characteristics of cooperatives are losing ground in current legislation, primarily that approved by the autonomous communities. This calls into question not only whether this legislation is appropriate for cooperatives, but also whether the autonomous communities are competent to regulate these «cooperatives.» Furthermore, the legal measures envisaged to promote awareness and proper functioning of cooperatives (training, education, and oversight) are not as successful or effective as might be expected. Therefore, it can be said that the public authorities are not contributing to the promotion of cooperatives, or at least not through adequate legislation as required by our Constitution.
Received: 08 February 2025
Accepted: 10 April 2025
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