Definition
A co-operative 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
Co-operatives are based on the values of self-help,
self-responsibility, democracy, equality, equity, and solidarity. In the
tradition of their founders, co-operative members believe in the ethical
values of honesty, openness, social responsibility, and caring for others.
Principles
The co-operative principles are guidelines by which co-operatives put
their values into practice.
First Principle: Voluntary and Open Membership
Co-operatives 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
Co-operatives 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 co-operatives members have equal voting rights (one
member, one vote) and co-operatives 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 co-operative. At least part of that capital is usually the
common property of the co-operative. 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 co-operative, possibly by setting up reserves, part of
which at least would be indivisible, benefiting members in proportion to
their transactions with the co-operative, and supporting other activities
as approved by the membership.
Fourth Principle: Autonomy and Independence
Co-operatives 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 co-operative autonomy.
Fifth Principle: Education, Training and Information
Co-operatives provide education and training for their members, elected
representatives, managers, and employees so they can contribute to the
development of their co-operatives. They inform the general
public-particularly young people and opinion leaders-about the nature of
benefits of co-operation.
Sixth Principle: Co-operation Among Co-operatives
Co-operatives serve their members most effectively and strengthen the
co-operative movement by working together through local, national,
regional and international structures.
Seventh Principle: Concern for the Community
While focusing on member needs, co-operatives work for the sustainable
development of their communities through policies accepted by their
members.
—Adopted September 1995
