Genossenschaften

Genossenschaften, or cooperatives, are voluntary associations of individuals or legal entities that join forces to meet common economic, social, or cultural needs through jointly owned and democratically controlled enterprises. They operate on the principle of one member, one vote and aim to provide goods or services at fair terms while generating sustainable benefits for members and the broader community. Profits are typically returned to members or allocated to reserves and development.

Origin and principles: The modern cooperative movement began in the 19th century in Europe. In the German-speaking world, pioneers such as Hermann Schulze-Delitzsch and Friedrich Wilhelm Raiffeisen established cooperative banks, farmers’ and consumer cooperatives that shaped practices still used today. Core principles include voluntary and open membership; democratic control by members; economic participation by members; autonomy and independence; education, training and information; cooperation among cooperatives; and concern for the community.

Organizational structure: Genossenschaften are governed by a general meeting of members and an elected management board (Vorstand), overseen by a supervisory board or equivalent body. Capital is provided by members through shares; liability is often limited to the cooperative’s assets. Surplus is typically allocated to reserves or distributed to members based on their patronage or use of the cooperative’s services.

Typical sectors: Housing cooperatives (Wohnungsbaugenossenschaften) provide affordable homes; consumer or purchasing cooperatives negotiate favorable terms; agricultural cooperatives pool resources for farming inputs and marketing; and credit or savings cooperatives (Kreditgenossenschaften) offer financial services. Other sectors include energy, transport, and various service-oriented activities.

Legal framework and scope: In Germany, genossenschaften are governed by the Genossenschaftsgesetz (GenG); Austria and Switzerland have similar Genossenschaftsgesetze. Legal forms require clear governance, accounting, and annual audits, with oversight and reserve obligations. Genossenschaften emphasize member control, capital retention, and social goals alongside financial performance.