cooperatives

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Definition of a Cooperative

• 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.

Cooperative values

• Cooperatives are based on the values of self-help, self-responsibility, democracy, equality, equity, and solidarity.

• Cooperative members believe in the ethical values of honesty, openness, social responsibility, and caring for others.

Cooperative Principles

• Voluntary and Open Membership

  • Cooperatives are voluntary organizations, open to all persons able to use their services and willing to accept the responsibilities of membership, without gender, social, racial, political or religious discrimination.

• 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.

  • Members have equal voting rights (one member, one vote).

• Member Economic Participation

  • Members contribute equitably to, and democratically control, the capital of their cooperative.

  • Members usually receive limited compensation, if any, on capital subscribed as a condition of membership.

  • Members allocate surpluses for developing their cooperative, benefiting members in proportion to their transactions, and supporting other approved activities.

• Autonomy and Independence

  • Cooperatives are autonomous, self-help organizations controlled by their members.

  • If they enter into agreements with other organizations or raise capital from external sources, they do so on terms that ensure democratic control by their members and maintain their cooperative autonomy.

• Education, Training, and Information

  • Cooperatives provide education and training for their members, elected representatives, managers, and employees.

  • They inform the general public about the nature and benefits of cooperation.

• Cooperation among Cooperatives

  • Cooperatives work together through local, national, regional, and international structures to serve their members and strengthen the cooperative movement.

• Concern for Community

  • Cooperatives work for the sustainable development of

    Page 4: Cooperative Principles

    • Voluntary and Open Membership

      • Cooperatives are open to all persons without discrimination

      • Membership is voluntary

    • Democratic Member Control

      • Members actively participate in setting policies and making decisions

      • Elected representatives, directors, and officers are accountable to the membership

      • Equal voting rights for members

    • Member Economic Participation

      • Members contribute equitably to the capital of the cooperative

      • Part of the capital is the common property of the cooperative

      • Members receive limited compensation or interest on capital

      • Surpluses are allocated for cooperative development, benefiting members, and supporting approved activities

    • Autonomy and Independence

      • Cooperatives are autonomous and self-help organizations

      • Agreements and capital raising should ensure democratic control and maintain autonomy

    • Education, Training, and Information

      • Cooperatives provide education and training for members, representatives, managers, and employees

      • Goal is to contribute effectively and efficiently to cooperative development

    • Cooperation Among Cooperatives

      • Cooperatives work together through local, national, regional, and international structures

      • Goal is to serve members effectively and strengthen the cooperative movement

    • Concern for Community

      • Cooperatives work for the sustainable development of their communities

      • Policies are approved by members