Cooperative principles

Cooperatives inherit a long historical trajectory, based on a plurality and diversity of origins. However, they all have a set of common values and principles that have been forged over the years. From the principles and values formulated by the Rochdale pioneers up to those formulated by the International Cooperative Alliance (ACI) at the congress held in Manchester in 1995. These principles provide the cooperatives with their own ideological framework, since they become guidelines with which the cooperatives strive to develop their cooperative organizations. They are inherently practical principles, updated and shaped by generations of experience and is enriched with their philosophical thinking.

Cooperative 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.

Cooperative principles

1. VOLUNTARY AND OPEN MEMBERSHIP

Cooperatives are voluntary organisations, 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. 

2. DEMOCRATIC MEMBER CONTROL

Cooperatives are democratic organisations 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 also organised in a democratic manner.

3. MEMBER ECONOMIC PARTICIPATION

Members contribute equitably to, and democratically control, the capital of their cooperative. At least part of that capital is usually the common property of the cooperative. Members 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 their 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.

4. AUTONOMY AND INDEPENDENCE

Cooperatives are autonomous, self-help organisations controlled by their members. If they enter into agreements with other organisations, 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.

5. 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 co-operatives. They inform the general public – particularly young people and opinion leaders – about the nature and benefits of co-operation.

6. COOPERATION AMONG COOPERATIVES

Cooperatives serve their members most effectively and strengthen the cooperative movement by working together through local, national, regional and international structures.

7. CONCERN FOR COMMUNITY

Cooperatives work for the sustainable development of their communities through policies approved by their members.

The first four principles are the guarantee that and conditions under which the members take ownership, control and benefit of the company. The principle of education is a commitment to effective membership and, therefore, a precondition for democratic control. Cooperation between cooperatives is a business strategy, without which cooperatives remain economically vulnerable. The last principle, concern for the community, is about the corporate responsibility and co-responsibility of companies in the development of the territory where they operate, beyond economic activity. In addition, it is the channel for cooperatives, in their promotion and training of cooperatives, to focus on socio-economic concerns, such as protection of the environment, revitalization of neighbourhoods, employment creation… 

The International Co-operative Alliance, founded in 1895, adopted the revised Statement on the Cooperative Identity at its Manchester Congress in September 1995. It includes the cooperative principles intended to guide co-operative organizations in the 21st century.