COOPERATIVE PRINCIPLES

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.

2. Democratic Member Control

Cooperatives are democratic organizations, controlled by their members who actively participate in setting their policies and making decisions. Persons serving as 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 also organized in a democratic manner.

3. Members’ Economic Participation

Members contribute equitably to, democratically control, the capital of their cooperative. Part of the capital is usually common property of the cooperative. Members 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 cooperative; setting up reserves (part of which would be indivisible); benefiting members in proportion to their transactions (use) of the cooperative; and supporting other activities approved by the membership.

4. Autonomy and Independence

Cooperatives are autonomous, self-help organizations controlled by their members. If cooperatives enter into agreements with other organizations, including governments, or raise capital from external sources, they do so on terms to ensure democratic control by their members and maintain their cooperative autonomy.

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.

6. Cooperation Among Cooperatives

Cooperatives serve their members most effectively and strengthen the cooperative movement by working together through local, regional, national, and international associations.

7. Concern for Community

Cooperatives work for the sustainable development of their communities through policies approved by their members.