Cooperatives are organizations based on the principles of voluntary and open membership, democratic control, members' economic participation, autonomy and independence, education and training, cooperation among cooperatives, and concern for the community. These principles guide cooperative businesses in providing services while prioritizing member needs and sustainable community development.
The 7 principles of cooperatives are:
- Voluntary and Open Membership - Cooperatives are voluntary organizations open to all people able to use their services and willing to accept the responsibilities of membership, without discrimination.
- Democratic Member Control - Cooperatives are democratic organizations controlled by their members, who actively participate in setting policies and making decisions. Members have equal voting rights (one member, one vote).
- Members' Economic Participation - Members contribute equitably to, and democratically control, the capital of the cooperative. Members allocate surpluses for developing the cooperative, setting up reserves, benefiting members, 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 external capital, they ensure democratic member control and maintain cooperative autonomy.
- Education, Training, and Information - Cooperatives provide education and training for members, elected representatives, managers, and employees so they can contribute effectively to the cooperative's development. They also inform the public about the nature and benefits of cooperation.
- Cooperation Among Cooperatives - Cooperatives serve their members most effectively and strengthen the cooperative movement by working together through local, national, regional, and international structures.
- Concern for Community - While focusing on member needs, cooperatives work for the sustainable development of their communities through policies accepted by the members.
These 7 principles, adopted by the International Co-operative Alliance, reflect the foundational values of the cooperative business model and help distinguish cooperatives from other types of businesses. They trace their roots back to the Rochdale Pioneers who established the first modern cooperative in England in 1844.
Citations: [1] https://www.tcectexas.com/7-cooperative-principles [2] https://mte.com/CooperativePrinciples [3] https://www.buckeyerec.coop/index.php/7-cooperative-principles/ [4] https://www.electric.coop/seven-cooperative-principles [5] https://uwcc.wisc.edu/about-co-ops/cooperative-principles/ [6] https://ncbaclusa.coop/resources/7-cooperative-principles/ [7] https://ontario.coop/co-operative-principles