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The seven Cooperative Principles are the guideposts
for a way of doing business that elevates the customer to the
level of owner and places the co-op at service to the local community
instead of far-away investors.
7 Cooperative Principles
1. Voluntary and open membership
2. Democratic member control
3. Non-profit operation & return of capital credits
4. Autonomy and Independence
5. Consumer education
6. Cooperation among cooperatives
7. Concern for community
Principle #1
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
Principle #2
Democratic Member Control
Cooperatives are democratic organizations controlled by their
members, who actively participate in setting policies and making
decisions. The board of directors is elected by and accountable
to the membership. In primary cooperatives, members have equal
voting rights (one member, one vote) and cooperatives at other
levels are organized in a democratic manner.
Principle #3
Non-Profit and Return of Capital Credits
Members contribute equitably to, and democratically control, the
capital of their cooperative. They do not issue stock. Surpluses
are margins, not profits.
The cooperative allocates margins, in excess of any amounts needed
to operate the cooperative, to members’ capital credits
accounts. Unlike IOU’s, margins are retained locally - not
sent off to distant stockholders as dividend payments.
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Principle #4
Autonomy and Independence
Cooperatives are not governmental organizations. They are privately
owned, autonomous corporations 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 cooperative autonomy.
Principle #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 cooperatives. They inform
the general public, particularly young people and opinion leaders,
about the nature and benefits of cooperation. CFC has a cooperative
education fund to support this.
Principle #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.
Principle #7
Concern for Community
While focusing on member needs, cooperatives work for the sustainable
development of their communities through policies accepted by
their members. |
