Co-operative society:

• A co-operative society is a voluntary form of business where in individuals intending to set-up a business get associated for economic interests but on the basis of equality i.e. to provide equal right and opportunity to all the members.
• Thus, people with common interests voluntarily get associated to fulfill economic interest of members through co-operation among members but, by treating all members equally. In other words to uplift economically weaker sections of society. The co-operative societies are set-up by weaker sections of society to protect its members from the clutches of profit hungry businessman.
• Amul is one of the best examples of a co-operative society.

Difference between co-operative society and other forms of business:

• Sole proprietorship, partnership and company are three major forms of business. But, the prime motive of all these three forms is profit.
• In order to earn profit these forms can even adopt unfair means like over-pricing, exploiting employees, tampering quality, black-marketing, etc.
• On the other hand, though co-operative society is also a form of business but it differs from those three due to its special characteristics.
• These societies work on the principle ‘No progress without co-operation’.
• The philosophy behind these societies is ‘Each for all and all for each’.