Co-operatives
A co-operative is a business or organisation owned and controlled by the people who use it. Its primary purpose is to provide goods or services to these members for their mutual benefit. This is the definition of a co-operative agreed by the International Co-operative Alliance:
'an autonomous association of persons united voluntarily to meet their common economic, social and cultural needs and aspirations through a jointly owned and democratically controlled enterprise.'
Co-operatives are run according to seven principles. These were agreed in 1995 by the International Co-operative Alliance (adapted from the original principles drawn up by the Rochdale Pioneers in 1844).
Voluntary and Open Membership
All people are free to join a co-operative, providing they are willing to accept the responsibilities of membership.
Democratic Member Control
Co-operatives are democratic organisations controlled by their members, who actively participate in setting their policies and making decisions. All members have the same voting power - one member one vote - regardless of the amount they have invested. A group of elected representatives are accountable to the membership.
Member Economic Participation
All members buy shares when joining. As the aim is not to make money, the interest received will be low. Profit (if any) is shared in proportion to the member's use of the co-operative, and some may be used to develop the organisation.
Autonomy and Independence
Co-operatives are autonomous self-help organisations controlled by their members. They can enter into agreements with other organisations, including government, as long as they maintain their independence.
Education, Training and Information
Co-operatives provide education and training for their members and employees. All members must know how their society works. They also inform the general public about the nature and benefits of co-operation.
Co-operation Among Co-operatives
It strengthens the co-operative movement and serves members most effectively if co-operatives work together at local, national, regional and international levels.
Concern for the Community
Co-operatives work for the sustainable development of their communities through policies approved by their members.