Co-operative principles
The principles originally outlined by the Rochdale Pioneers in 1844 became the guide used by co-operators everywhere, but in 1931 the International Co-operative Alliance set up a special committee to clarify the principles in order to gauge the authenticity of societies applying for membership. They concluded that the 1844 principles were essentially -
- Open membership
- Democratic control
- A dividend on purchases
- Limited interest on capital
- Political and religious neutrality
- Cash trading
- Promotion of education
These were approved at the 1937 ICA Congress. These principles were examined again in 1963 and at its 1988 Congress, the ICA decided a further review was needed. The ensuing report - Co-operative Values in a Changing World - sought to define co-operative values and find a common basis for all co-operators. The report was discussed at the 1992 Congress and following consultation with co-ops across the world, the new statement on co-operative identity was accepted at the ICA Centennial Congress in Manchester in 1995. The statement gave a definition of a co-op (see the Definition section) and outlined co-operative values and principles.
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
Co-operative principles are guidelines by which co-operatives put their values into practice.
There are seven co-operative principles.
- Voluntary and open membership
Co-operatives 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.
- Democratic member control
Co-operatives 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 co-operatives members have equal voting rights (one member, one vote) and co-operatives at other levels are also organised in a democratic manner.
- Member economic participation
Members contribute equitably to, and democratically control, the capital of their co-operative. At least part of that capital is usually the common property of the co-operative. 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 co-operative, possibly 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 approved by the membership.
- Autonomy and independence
Co-operatives 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 co-operative autonomy.
- Education, training and information
Co-operatives 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.
- 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.
- Concern for community
Co-operatives work for the sustainable development of their communities through policies approved by their members.
more How did the values evolve?
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