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7 Principles of Co-operation

7  CO-OPERATIVE PRINCIPLES provide the guidelines for all Co-ops worldwide.

Over last summer, we shared our thoughts on the Co-op Principles. Each week we presented a Principle and told you what it meant to us - & why it's important.

7 Weeks - 7 Co-op Principles


Week #1 - Co-op Principle # 1

Voluntary and Open Membership: Cooperatives are voluntary organizations, open to all people able to use its services and willing to accept the responsibilities of membership, without gender, social, racial, political or religious discrimination.

Kevin Bowman (our Guelph Campus Co-op Pres) says: "Voluntary and Open Membership is the 1st Co-operative Principle for good reason - without it the other principles become almost meaningless."

And Abdalla Mohammed (GCC Director) explains:  "those differences are what make us richer and those differences are what make us  stronger. We can say that we have a place for everyone in our Guelph Campus Co-op."

"This principle encourages Co-operatives to serve as community interfaces that promote and nurture interaction among groups and individuals who may otherwise remain relatively isolated from one another. The nature of Co-operative membership also allows for important community needs to be identified, discussed and met via a grassroots process."  David Gundrum (GCC Director)   

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Week# 2 - Co-op Principle # 2

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.

 

Abdalla Mohammed (GCC Director) relates this principle to our co-op.  "All of the Co-op's Board of Directors are elected by their co-op members in a democratic way; each member has one vote. This shows exactly that the core principle of our co-op is based on a democratic process where everyone participates equally.

Also it means to me that those who are elected have the responsibility to uphold the trust of the members who elected them to that position."

And our GCC President Kevin Bowman further opines about the meaning of democracy.

"In terms of governments, there are many ways to go about democracy but it is generally accepted that any form of democracy is better than the alternatives both in terms of outcomes (economic growth, human rights, standard of living, health, etc) and ethical/moral considerations."

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Week #3 - Co-op Principle #3

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.


Here are Emily Padhi's (GCC Director) thoughts on this. "The third principle underpins what makes a co-op unique: the assets of a co-op are not controlled by any one individual, but rather they are shared amongst all.

This means members equally reap the benefits of the organization and share the responsibility of preserving its health. In a sense, this principle encourages co-operation, especially in the decision-making process. Globally, this principle provides a new means of doing business, leveling the power imbalance between owner and worker that plagues the traditional old way of doing things. At the Guelph Campus Co-op, students are included in this process by mandate."

"In summary, this principle decrees that cooperatives are not non-profit organizations, however, members agree to participate in an association that exists for the good of the whole group and not the collected few. Therefore, private business and the cooperative are not differentiated by profit but the uses to which it is put."  Warren Van Loggerenberg (GCC Director)

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Week #4 - Co-op Principle #4

Autonomy and Independence: Co-operatives 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 co-operative autonomy.


"To  me this principle reflects that our co-op has the ability to  engage in agreements with business and organizations that might benefit us but that should never be at the cost of our Autonomy and independence."  (GCC Director) Abdalla Mohammed

 And (GCC Director) Emily Padhi further adds, "Our mandate is to serve students. This principle is essential as it protects the integrity of a co-op and allows it the freedom to operate according to its mandate and values, whatever those might be."

(GCC Director) Matthew Campbell emphasises that "once a cooperative is no longer Autonomous or Independent it compromises the democratic control its members hold and threatens the very core of what a co-op is; an organization run by its members - for its members".

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Week#5 - Co-op Principle #5.

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. 

For Kevin Bowman (GCC Pres), "this principle means that Co-ops treat their members and staff like people instead of "tools" or "resources" & show a willingness to invest in itself and the people that make up the Co-op."

"A co-op is a business and the services it provides speak for themselves. At the GCC, we don't need to educate members (i.e. students) why fair prices for textbooks and rent are important. That's a no-brainer.

Instead, the aim of principle #5 is to help members (and non-members) understand how a co-op functions, and why it's better than other models. This will ensure that the legacy of the co-op model, which is very much grassroots in nature, carries on."  Emily Padhi (GCC Director)

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Week#6 - Co-op Principle #6

Co-operation Among Co-operatives: Co-operatives work for the sustainable development of their communities through policies approved by their members.

Abdalla Mohammed (GCC Director): "From my point of view - this sums up what the co-operative movement is all about. It shows that co-operatives strive to work together to benefit both members of the co-op and the community at large."

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Week#7 - Co-op Principle #7

Concern for Community:  Co-operatives work for the sustainable development of their communities through policies approved by their members.

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1. 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.

2. 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.

3. 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.

4. Autonomy and Independence

Co-operatives 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 co-operative autonomy.

5. 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.

6. 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.

7. Concern for Community

Co-operatives work for the sustainable development of their communities through policies approved by their members.

More History on Co-op Principles

Co-op Principles have been in use since 1844 when the Rochdale Society of Equitable Pioneers defined them for use as overarching guidelines in the operations and structure of their co-operative. The original Rochdale principles were officially adopted by the ICA in 1937, updated in 1966, and then integrated, as the set of 7 Principles, within the Statement on the Co-operative Identity in 1995.