"Co-operatives are more resilient to crisis than other forms of
enterprise according to a recent study by the ILO (International Labour
Office). .. People are increasingly choosing the co-operative form of
enterprise to respond to the new economic realities" ICA (International Co-operative Alliance) message on the 15th UN International Day of Co-operatives 4th July 2009
What is a co-operative?
A co-operative is 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.
The key words in this definition are:
- autonomous - not controlled by anyone outside the enterprise - including national and local government
- united voluntarily - no-one can be forced to join
- jointly-owned - by its members
- democratically-controlled - one member one vote
Ranging from small-scale to multi-million dollar businesses across
the globe, co-operatives employ more than 100 million women and men and
have more than 800 million individual members.
Values
Co-operatives are based on the values of self-help,
self-responsibility, democracy, equality, equity and solidarity. In the
tradition of their founders, co-operative members believe in the ethical
values of honesty, openness, social responsibility and caring for
others.
Principles
The co-operative principles are guidelines by which co-operatives put their values into practice.
1st Principle: Voluntary and Open Membership
Co-operatives are voluntary organisations, 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 organisations controlled by their members,
who actively participate in setting their policies and making decisions.
Men and women serving as elected representatives are accountable to the
membership. In primary co-operatives members have equal voting rights
(one member, one vote) and co-operatives at other levels are also
organised in a democratic manner.
3rd Principle: Member Economic Participation
Members contribute equitably to, and democratically control, the capital
of their co-operative. At least 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 their co-operative, possibly by setting up
reserves, part of which at least would be indivisible; benefiting
members in proportion to their transactions with the co-operative; and
supporting other activities approved by the membership.
4th Principle: Autonomy and Independence
Co-operatives are autonomous, self-help organisations controlled by
their members. If they enter to agreements with other organisations,
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 inform the
general public - particularly young people and opinion leaders - about
the nature and benefits of co-operation.
6th Principle: Co-operation among Co-operatives
Co-operatives serve their members most effectively and strengthen the
co-operative movement by working together through local, national,
regional and international structures.
7th Principle: Concern for Community
Co-operatives work for the sustainable development of their communities through policies approved by their members.
Types of co-operative
The co-operative model of enterprise can be applied to any business
activity. They exist in traditional economic sectors such as
agriculture, fisheries, consumer and financial services, housing, and
production (workers' co-operatives). However, co-operative activity now
spans a large number of other sectors and activities including
car-sharing, child-care, health and social care, funeral, orchestras,
schools, sports, tourism, utilities (telephone and internet services,
electricity, water, gas), and transport.
Co-operatives are significant economic and social actors
All over the world, millions of people have chosen the co-operative
model of business enterprise to enable them to reach their personal and
community development goals. Co-operatives create and maintain
employment; they are responsible for producing and supplying safe and
quality food and services to their members and the communities in which
they operate.
By putting the Co-operative Principles and ethics in practice they
promote solidarity and tolerance, while as 'schools of democracy' they
promote the rights of each individual - women and men. Co-operatives are
socially conscious responding to the needs of their members whether it
is to provide literacy or technical training, or to take action against
the HIV/AIDS pandemic. Through their varied activities, co-operatives in
many countries are significant social and economic actors in national
economies, thus making not only personal development a reality, but
contributing to the well-being of entire populations at the national
level.
