A COOPERATIVE IS A BUSINESS THAT IS
OWNED BY ITS MEMBERSHIP.
The founders of what became the Moscow Food Co-op, in 1973. Photo from the Daily Idahonian.
Cooperatives are democratic: one owner, one vote. They come in the form of consumer cooperatives (like our Co-op), worker cooperatives, healthcare groups, credit unions, and more.
Regardless of a cooperative's focus, one thing we all have in common is that we adhere to seven cooperative principles established by cooperative pioneers during the Industrial Revolution in northern England.
These principles guide us in making business choices that serve our owners -- they help remind us who we are and what we are here to do. For more information about how to engage as an owner in YOUR cooperative, click here.
The Seven Cooperative Principles
1. Voluntary and Open Membership
Co-operatives 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.
2. 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).
3. 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 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 approved by the membership.
4. 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.
5. 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.
6. 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.
7. Concern for Community
Co-operatives work for the sustainable development of their communities through policies approved by their members.
The seven cooperative principles, developed by the Rochdale Pioneers, have been updated by the International Cooperative Alliance.