Cooperative values and principles

 

The concept of cooperative has deep historical roots. While many early cooperative efforts faced challenges in sustaining their ventures, the Rochdale pioneers, established in England in 1844, are recognised as the founders of the modern cooperative movement. They laid down the foundational principles, values and practices for running an effective and fair cooperative business. With growing interest in cooperative models, in 1865 a Rochdale pioneer initiated the International Co-operative Alliance to foster the cooperative movement on a global scale. It was later in 1995 that the ICA identified and gathered a unified global set of principles and values 

All cooperatives are formed by autonomous individuals (that is right, anyone can form or join a cooperative!), who act driven by a commitment to volunteerism, and democratic processes, to sustainably address shared cultural, social, and economic needs. 

 

Cooperative values

Seven cooperative principles guide cooperatives in putting their values into practice. 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. These principles show how the cooperative business model champions fairness and mutual and collective responsibility, beyond profit and economic success. They drive cooperative entities’ functioning and the manner in which they interact with the larger economy and society. These principles include voluntary and open membership, democratic member control, member economic participation, autonomy and independence, education, training and information, cooperation among cooperatives, and concern for community

 

The 7 cooperative principles

The cooperative principles are guidelines by which cooperatives put their values into practice.

 

 

Cooperative Principle 1: Voluntary and Open Membership

Cooperatives are organisations that anyone can join, as long as they agree to take on the responsibilities of being a member and helping the business grow. Voluntary and open membership involves putting in place policies that ensure no one is left out and that the cooperative’s services are easy for everyone to access, without discriminating based on gender, social status, race, political views, or religion. This principle ensures that cooperatives are accessible to a wide range of people, fostering an environment of diversity and inclusion. 

The core of principle one is about giving everyone the chance to be part of the cooperative and to leverage individual views, skills, and efforts to help the cooperative grow. It is built on the idea of democracy and equality, where every member’s input is equally valued. By making membership open to all, cooperatives create a community where respect and teamwork are fundamental. This not only makes the cooperative stronger but also shows the community at large how diverse groups can work effectively together.  

  

 

Cooperative Principle 2: Democratic Member Control

 

Principle two holds that every member has a say in how the organization is run. regardless of their level of involvement or investment. Each member gets one vote, ensuring that the cooperative’s direction reflects the collective will and interests of its entire membership. This is the fundamental under which  
 

cooperatives operate. Members elect representatives to act on their behalf, but these elected leaders are always accountable to the members themselves, ensuring that the decisions align with the internal needs, values and aspirations. Regular meetings, open discussions, and transparent reporting are common practices that help maintain this democratic control. Members are encouraged to voice their opinions, offer suggestions, and take an active role in the governance of the cooperative. 
 

A second implication is that cooperatives are focused on serving their members’ best interests, over and above profit. They promote a sense of ownership and responsibility among members, strengthening their commitment to the cooperative and to each other. No matter how large or small their contribution, each member has an equal stake in the cooperative’s success. This principle sets cooperatives apart from traditional businesseswhere decision-making is often concentrated in the hands of a few. 

 

Cooperative principle 3: Member Economic Participation

Members contribute equitably to the capital of their cooperative, a part of which is usually commonly owned by the members. Members usually receive limited compensation, if any, on the capital subscribed as a conditionality of their membership. Members allocate surpluses for some of or all the following purposes:

  1. developing their cooperative, possibly by setting up reserves, a part of which would be indivisible;
  2. benefiting members in proportion to their transactions with the cooperative; 
  3. and supporting other activities approved by the members.

Cooperative principle 4: Autonomy and Independence

Cooperatives operate independently, based on their members’ needs and preferences. They prioritise self-governance, ensuring they remain free from external control, even when partnering with others or accepting external funding. The key is that any external relationships must always respect the cooperative’s member-driven mission, without compromising its values. 

This principle is about safeguarding the cooperative’s ability to serve its members effectively, ensuring that cooperatives stay focused on their primary goal of bringing benefit to their members. Autonomy is crucial for maintaining a cooperative’s identity and purpose, fostering a sense of trust and unity among members.  

 

 

Cooperative principle 5: Education, Training, and Information

Education, training, and information are pivotal in empowering members, leaders, employees, and the broader community to contribute effectively to the cooperative’s development and the cooperative movement at large. This principle reflects the cooperative’s commitment to fostering an environment of continuous learning and improvement. By investing in education and training, cooperatives ensure that all stakeholders have the knowledge and skills necessary to participate fully in the cooperative’s activities and governance. Furthermore, by informing the public about the cooperative model, its benefits, and its potential to transform economies and societies, cooperatives extend their influence beyond their immediate community. This principle is about building a knowledgeable, skilled, and engaged membership and public, equipped to navigate current and future challenges embodying the cooperative values in all aspects of life. 
 

Cooperative principle 6: Cooperation among Cooperatives

By embodying the spirit of solidarity, cooperatives recognize the strength in working together to achieve greater economic and social impact. This principle emphasisesmutual support, shared knowledge, and collective action within the cooperative movement. It encourages local, national, regional, and international collaborative structures, leveraging cooperatives’ collective resources and networks to enhance their effectiveness and reach. Cooperation among cooperatives fosters a unified approach to addressing common challenges, promoting innovation, and advocating for the sustainability of the cooperative model. This ethos strengthens the individual cooperatives and the movement at large, demonstrating the economies of scale of the power of collective action in creating a more equitable and sustainable world.

 

 

Cooperative principle 7: Concern for Community

This principle encapsulates the cooperative movement’s commitment to contributing positively to the welfare of their communities, with sustainable development as a core objective. Cooperatives engage in initiatives that address the economic, social, and environmental needs of their communities, driven by policies approved by their members. This approach to community engagement reflects a deep understanding of the interdependence between cooperatives and their communities, recognising that the success of one contributes to the success of the other. Through this principle, cooperatives act as catalysts for positive change, championing projects that promote social responsibility, environmental sustainability, and economic inclusivity. It highlights the cooperative’s role not just as an economic entity, but as a community partner dedicated to building a better, more sustainable future for all. 

 

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