What is Cooperative?
A co-operative is a distinct type of organization, collectively owned and democratically controlled by the member of the co-operative to satisfy their common economic, social or cultural needs.
1st Principle: Voluntary and open membership
Co-operatives 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.
2nd Principle: Democratic member control
Co-operatives are democratic organizations controlled by their members, who actively participate in setting policies and making decisions. Men and woman serving as elected representatives are accountable to the membership. In primary co-operatives, members have equal voting rights (one member, one vote) and cooperatives at other levels are organized in a democratic manner.
3rd Principle: Member economic participation
Members contribute equitably to, and democratically control, the capital of their co-operative. At lease 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, possibly by setting up reserves, part of which at least would be indivisible;
- benefitting members in proportion to their transactions with activities approved by the membership.
- supporting other activities approved by the membership.
4th Principle: Autonomy and independence
Co-operatives 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 co-operative autonomy.
5th Principle: 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 their co-operatives. They also inform the general public - young people in particular - and opinion leaders about the nature and benefits of cooperation.
6th Principle: Cooperation among co-operatives
Co-operatives serve their members most effectively and strengthen the co-operative movement by working together through local, regional, national and international structures.
7th Principle: Concern for community
While focusing on member needs, co-operatives work for the sustainable development of their communities through policies accepted by their members.
source: canadabusiness.ca
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