Principles

The seven principles of the cooperative movement

The seven principles of the cooperative movement are guidelines according to which cooperatives put their values into practice. These guidelines were ratified and adopted when the world's first cooperative was founded in 1844. These guidelines are:

1º - Open and voluntary membership - cooperatives are voluntary organizations which are open to all those who are capable of using their services and assume responsibilities as members, with no discrimination with regard to sex, social position, race, or political or religious beliefs.

2º - Democratic management - cooperatives are democratic organizations which are controlled by their members, who actively participate in all policy-making and decision-making processes. Men and women, elected as representatives of all other members, are held accountable by all other members. In first-level cooperatives members have equal voting rights (one member, one vote); higher level cooperatives are also organized in a democratic manner.

3º - Economic participation of members - members contribute equally towards the capital of their cooperatives, which is democratically controlled. Part of the this capital is normally common cooperative property. Members normally receive limited returns on the accrued capital. Members allocate the remaining capital towards one or more of the following:

• the strengthening of their cooperatives, through the setting up reserves, some of which shall, at least, be indivisible;
• benefits for members which are proportional to their transactions with the cooperative;
• the support of other activities approved by their members.

4º - Autonomy and independence - cooperative are autonomous, mutually supportive organizations, controlled by their members. Whenever agreements are entered into with other organizations, including public institutions, or when external capital is obtained, this must be done ensuring the democratic control of its members, and the autonomy of the cooperative.

5º - Education, training, and information - cooperatives promote the education and training of its members, of their elected representatives and workers, so that they may effectively contribute towards the development of their cooperatives. Public awareness campaigns are also promoted, mainly among youngsters and community leaders, regarding the nature and advantages of cooperation.

6º - Inter cooperation - cooperatives serve their members more effectively and strengthen the cooperative movement by working together through local, regional and international arrangements.

7º - Interest in the community - cooperatives work towards the sustainable development of their communities, through policies ratified by their members.