The 7 Cooperative Principles
The seven principles used by the International Cooperative Alliance today are generally accepted by cooperatives worldwide. Cooperatives are also based on the values of self-help, self-responsibility, democracy, equality, equity, and solidarity.
The seven Co-operative Principles are the internationally agreed foundational principles that, when applied to the day-to-day governance and management of co-operative enterprises, enables them achieve the objective of meeting their members’ needs and aspirations.
The Principles are not inscribed in stone, nor are they rigid rules to be followed; they are the sound ethical principles to be applied with vision and proportionately according to the national economic, cultural, social, legal and regulatory context and particularities within which each co operative enterprise operates.
A co-operative is the only form of entrepreneurship organisation with such an international agreed and recognised definition, values and principles. Upholding the Principles make a valuable difference.
Applying equality and ethical values into practice by:-
1- 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.
2- 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.
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 the co-operative – Setting up reserves – Benefiting members in proportion to their transactions with the co-operative – 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 the co-operative. 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.
