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Cooperative Principles
Cooperative businesses are
special because they are owned by the members they serve and
because they are guided by a set of seven principles that
reflect the best interests of those members.
More than 100 million people
are members of 47,000 U.S. cooperatives, enabling consumers to
secure a wide array of goods and services such as health care,
insurance, housing, food, heating fuel, hardware, credit unions,
child care or utility service.
All cooperative businesses
adhere to these seven guiding principles:
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 discrimination.
Democratic
Member Control — Cooperatives are
democratic organizations controlled by their members, who
actively participate in setting policies and making decisions.
The elected representatives are accountable to the membership.
In primary cooperatives, members have equal voting rights (one
member, one vote) and cooperatives at other levels are organized
in a democratic manner.
Members'
Economic Participation — Members
contribute equitably to, and democratically control, the capital
of their cooperative. At least part of that capital is usually
the common property of the cooperative. 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
cooperative, possibly by setting up reserves, part of which at
least would be indivisible; benefiting members in proportion to
their transactions with the cooperative; and supporting other
activities approved by the membership.
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 sources,
they do so on terms that ensure democratic control by their
members and maintain their cooperative autonomy.
Education,
Training, and Information —
Cooperatives provide education and training for their members,
elected representatives, managers, and employees so 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.
Cooperation
Among Cooperatives — Cooperatives
serve their members most effectively and strengthen the
cooperative movement by working together through local,
national, regional, and international structures.
Concern
for Community — While focusing on
member needs, cooperatives work for the sustainable development
of their communities through policies accepted by their members.
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