The Statement on the Cooperative Identity states that 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.”
The International Co-operative Alliance is the global steward of the Statement on the Cooperative Identity – the Values and Principles of the cooperative movement.
In 1995, the ICA adopted the revised Statement on the Cooperative Identity which contains the definition of a cooperative, the values of cooperatives, and the seven cooperative principles as described below. You can also consult the Guidance Notes on the Cooperative Principles and Values which give detailed guidance and advice on the practical application of the Principles to the cooperative enterprises.
Definition of a Co-operative
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.
Cooperatives: are business enterprises that are people-centered. They are formed by members who owns, patronizes and benefits from their operations essentially focused on enhancing members social-economic well-being.
We all have childhood memories of parents, teachers and others encouraging us to work together. A co-op is what “working together” looks like all grown up. From the outside, many co-ops look like any other business, since a co-op provides products and services like conventional businesses do. But it’s what goes on behind the scenes that makes it different.
A cooperative exists to serve its members, but what makes co-ops unique is that the members are also the owners. So, in addition to getting the products and services you need, you also have a say in the business decisions your cooperative makes.
Simply put, cooperative bodies are voluntary association of persons of limited means who pooled their scarce resources together for promotion of their social-economic conditions, managing the business democratically and sharing accrued risks and benefits proportionate to member patronage
Cooperative organizations operations are guided by laws, regulation, Bye-laws and resolution reached by member-patrons.
Cooperatives are based on the values of self-help, self-responsibility, democracy, equality, equity, and solidarity. In the tradition of their founders, cooperative members believe in the ethical values of honesty, openness, social responsibility and caring for others.
The cooperative principles are guidelines by which cooperatives put their values into practice.
1. 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.
2. Democratic Member Control
Cooperatives 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 cooperatives members have equal voting rights (one member, one vote) and cooperatives at other levels are also organised in a democratic manner.
3. Member 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 their 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.
4. Autonomy and Independence
Cooperatives are autonomous, self-help organisations controlled by their members. If they enter into 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 cooperative autonomy.
5. 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 co-operatives. They inform the general public – particularly young people and opinion leaders – about the nature and benefits of co-operation.
6. Cooperation among Co-operatives
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 work for the sustainable development of their communities through policies approved by their members.
Guidance Notes on the Co-operative Principles
In 2016, the ICA’s Principles Committee released the Guidance Notes on the Cooperative Principles, giving detailed guidance and advice on the practical application of the Principles to cooperative enterprise. These Guidance Notes aim to state our understanding of the application of the Principles in contemporary terms for the 21st century.
2013 saw the launch of the global Cooperative Marque. The objective is to create a new image that will become the new global cooperative visual identity, used to provide a ‘promotional umbrella’ and ‘unity of purpose’ for the global cooperative movement.
Find our more information about the Cooperative Marque and .coop at www.identity.coop