Unit 3 - cooperative movement

The principles of the cooperative movement can be summarised as follows (ICA, 2010).

1st principle: voluntary and open membership.

Cooperatives 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.

Members actively participate in setting policies and making decisions on the basis of ‘one member one vote’; therefore all members have equal voice in decision-making. Their participation in decision-making can either be direct (decisions are discussed and taken by all members in general meetings), or indirect through elected representatives, as is more often the case in large cooperatives.

3rd principle: member economic participation.

Cooperatives are built on the belief that strength comes from pooling resources to engage in mutual self-help; there is an underlying expectation that at least a portion of capital should be owned collectively by all members, and that all members should contribute. Cooperative members usually receive limited compensation, if any, on the capital they subscribed; and decisions regarding the distribution of surplus (e.g. towards the development of the cooperative, compensation of members, or supporting community activities) are taken democratically.

4th principle: autonomy and independence.

Cooperatives are autonomous, self-help organisations controlled by members. If they raise funds from external sources, they do so on terms that ensure democratic control by members and maintain the cooperative’s autonomy. Cooperatives are also in principle free of intervention from governments or other sources so that ultimately the members are able to control their own destiny.

5th principle: education, training and information.

Education is deemed central to democratic participation and according to this principle, cooperatives should aim to contribute towards the education and training of their members, as well as towards awareness-building about the nature and benefits of cooperation among the general public.

6th principle: cooperation among cooperatives.

Cooperatives are encouraged to work together through local, national, regional and international networks to strengthen the cooperative movement. For example, in Britain, Radical Routes is a network of cooperatives that aims to support the development of cooperatives, and has a financial arm that makes loans to small cooperatives.

7th principle: concern for community.

This principle suggests that the values of mutual help, solidarity and equality underpinning the cooperative movement should extend to cooperatives’ contributions to society at large. Through this principle, the ICA encourages cooperatives to ‘work for the sustainable development of their communities through policies, programmes, funding approved by their members.’