Principles

Key Principles of Cooperative enterprises are founded upon the cooperative values and defined by the International Cooperative Alliance (ICA) Statement on the Cooperative Identity.

These principles guide the functioning and purpose of cooperative organizations. The principles are as follows:

1. Voluntary and Open Membership: Cooperatives are open to all, irrespective of social, cultural, or economic backgrounds. Membership is voluntary and based on the willingness to actively participate and uphold the values of the cooperative.

2. Democratic Member Control: Cooperatives are democratic organizations governed by their members. Each member typically has an equal say in decision-making, following the principle of “one member, one vote.”

3. Member Economic Participation: Members contribute equitably to, and have control over, the capital of the cooperative. This often involves individuals contributing funds to the cooperative and fair distribution of surpluses based on their level of participation.

4. Autonomy and Independence: Cooperatives are autonomous and self-governing entities, allowing them to make decisions in the best interest of their members. They maintain control over their resources and operations to serve their members’ needs effectively.

5. Education, Training, and Information: Cooperatives prioritize education and provide training for their members to actively participate in the functioning of the organization. They also strive to provide access to information about the cooperative movement and relevant topics to enhance member knowledge.

6. Cooperation Among Cooperatives: Cooperatives work together and actively collaborate at local, national, and international levels to strengthen the cooperative movement as a whole. This principle promotes mutual support, sharing of best practices, and the development of partnerships.

7. Concern for the Community: Cooperatives operate for the sustainable development of their communities, aiming to create social, cultural, and economic benefits. They contribute to community development, environmental sustainability, and uplifting the overall well-being of society.

These principles form the foundation of cooperative enterprises and differentiate them from other business models, emphasizing values such as participation, democracy, and a focus on community well-being.