Principles of Cooperation -ICA 1995

1995 ICA Cooperative Values and Principles

Definition

          A cooperative 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.

Values

          Cooperatives are based on the values of self help, democracy, equality, equity, and solidarity. Cooperative members believe in the ethical values of honesty , openness, social responsibility, and caring for others.

Self Help: Self help is based on the belief that all people can and should strive to control their own destiny. As an individual, one is limited in what one can try to do, what one can achieve. Through joint action and mutual responsibility , one can achieve more, especially by increasing the collective influence in the market and before governments.

Democracy: It emphasizes that ownership is distributed among members on a democratic basis.

Equality:  Cooperatives are based on equality. Members have rights of participation , right to be informed, a right to be heard, and a right to be involved in making decision. Members should be associated in a way that is as equal as possible.

Equity: Equity refers, to how members are treated within a cooperative. They should be treated equitably in how they are rewarded for their participation in the cooperative , normally through patronage dividends, allocations to capital reserves in their name, or reductions in charges.

Honesty: cooperatives have aspired to honest dealings with their members, which in turn has led to honest dealings with non-members

Openness:  They are public organizations which regularly reveal to their membership, the public and governments considerable information on their operations

Solidarity: Members have the responsibility to ensure that all members are treated as fairly as possible; that the general interest is always kept in mind. Cooperatives are more than just association of individuals; they are affirmations of collective strength and mutual responsibility. Further, solidarity means that cooperators and cooperatives stand together. They aspire to the creation of a united cooperative movement, locally, nationally, regionally, and internationally.

Principles (1995)

1.       Voluntary and Open membership

          Cooperatives 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 discriminations.

2.       Democratic Member Control

          Cooperatives are democratic organizations controlled by their members, who actively participate in setting their polices and making decisions. Men and women serving as elected representatives are accountable to the membership. In primary cooperatives members have equal voting rights and cooperatives at other levels are also organized in a democratic manner.

3.       Members Economic Participation

          Members contribute equitable to, and democratically control, the capital of their cooperative. They 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 cooperatives; benefiting memers in proportion to their transactions with the cooperative; and supporting other activities approved by the membership

4.       Autonomy and Independence

          Cooperatives are autonomous, self help organizations controlled by their members. If they enter into agreements with other organizations, including governments, or raise capital from external source, they do so on terms that ensure democratic control by their members and maintain their cooperative autonomy

5.       Education, Training and Information

          Cooperatives provide education and training for their members elected, representatives, managers, and employees, so that they can contribute effectively to the development of their cooperatives. They inform the general public particularly young people and opinion leaders about the nature and benefits of cooperation

6.       Cooperation among Cooperatives

          Cooperatives serve their members most effectively and strengthen the cooperative movement by working together through local, national, regional , and international structures

7.       Concern for Community

          Cooperatives are organizations that exist primarily for the benefits of their members. Because of this strong association with members, often in a specific geographic space, cooperatives are also often closely tied to their communications.