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Cooperatives
can be found in all facets of business - both in the United States
and around the world. Regardless of whether they sell electricity,
insurance, or even orange juice, cooperatives are guided by seven
core principles.
- 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.
- Democratic
Member Control.
Cooperatives are democratic organizations controlled by their
members, who actively participate in setting policies and making
decisions. The 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 organized in a democratic manner.
- Members'
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
the 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.
- Autonomy
and Independence.
Cooperatives are autonomous, self-help organizations
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.
- 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.
- Cooperation
Among Cooperatives.
Cooperatives serve their members most effectively and
strengthen the cooperative movement by working together through
local, national, regional, and international structures.
- Concern for
Community.
While focusing on member needs, cooperatives work for the
sustainable development of their communities through policies
accepted by their members.
Adopted by the
International Cooperative Alliance, Manchester, England, in 1966 and
amended in 1995.
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