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Resources
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The
Cooperative Principles |
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Co-ops
worldwide share a common creed - known as the "co-op
principles." All co-ops operate under these
seven principles. The co-op principles serve as
an important framework to define the unique ways
co-op businesses are structured. They help all co-ops
maintain both the spirit and structure of cooperation.
The co-op principles were originally developed in
the mid-1800s by groups struggling to provide unadulterated,
quality food when the market offered them very few
options. They were eventually endorsed by the International
Cooperative Alliance, most recently in 1995, as
the standards by which all co-ops should operate
and by which members maintain democratic control.
Co-ops are among very few types of business organizations
that adhere to a set of principles.
These principles are significant not just from a
historical perspective but also because they outline
a democratic structure that can be adapted to businesses
providing any of a large variety of services and
products.
The
International Cooperative Alliance
Statement of Cooperative Diversity
Adopted September 1995
DEFINITION
A
cooperative is an autonomous association of persons
united voluntarily to meet their common economic,
social, and cultural needs and aspirations through
a jointly-owned and democratically-controlled enterprise.
VALUES
Cooperatives are based on the values of
self-help, self-responsibility, democracy, equality,
equity, and solidarity. In the tradition of their
founders, cooperative members believe in the ethical
values of honesty, openness, social responsibility,
and caring for others.
PRINCIPLES
The cooperative principles are guidelines
by which cooperatives put their values into practice.
First Principle:
VOLUNTARY
AND OPEN MEMBERSHIP
Cooperatives
are voluntary organizations, open to all persons
able to use their services and willing to accept
the responsibility of membership, without gender,
social, racial, political, or religious discrimination.
Second Principle:
DEMOCRATIC MEMBER CONTROL
Cooperatives are democratic organizations
controlled by their members, who actively participate
in setting their policies and making decisions.
Men and women serving as elected representatives
are accountable to the membership. In primary cooperatives,
members have equal voting rights (one member, one
vote) and cooperatives at other levels are organized
in a democratic manner.
Third Principle:
MEMBER ECONOMIC PARTICIPATION
Members contribute equitably to, and democratically
control, the capital of the cooperative. At least
part of that capital is usually the common property
of the cooperative. They usually receive limited
compensation, if any, on capital subscribed as a
condition of membership. Members allocate surpluses
for any or all of the following purposes: developing
the cooperative, possibly by setting up reserves,
part of which at least would be indivisible, benefiting
members in proportion to their transactions with
the cooperative, and supporting other activities
approved by the membership.
Fourth Principle:
AUTONOMY AND INDEPENDENCE
Cooperatives are autonomous, self-help
organizations controlled by their members. If they
enter into agreements with other organizations,
including governments, or raise capital from external
sources, they do so on terms that ensure democratic
control by their members and maintain their cooperative
autonomy.
Fifth Principle:
EDUCATION, TRAINING, AND INFORMATION
Cooperatives provide education and training
for their members, elected representatives, managers,
and employees so they can contribute effectively
to the development of their cooperatives. They inform
the general public - particularly young people and
opinion leaders - about the nature and benefits
of cooperation.
Sixth Principle:
COOPERATION
AMONG COOPERATIVES
Cooperatives
serve their members most effectively and strengthen
the cooperative movement by working together through
local, national, regional, and international structures.
Seventh Principle:
CONCERN FOR THE COMMUNITY
While focusing on member needs, cooperatives
work for the sustainable development of their communities
through policies accepted by their members. |
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