Cooperatives are defined by the International Cooperative Alliance as  “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.”

 

Members exert control by electing the Board of Directors, which hires staff including a manager, appoints committees, and maintains fiduciary responsibility.

 

This iteration of the seven Cooperative Principles was adopted in 1995 by the International Cooperative Alliance (adapted from the ICA’s website):



• 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 their policies and making decisions. Elected representatives are accountable to the membership. Cooperative members have equal voting rights (one member, one vote).
• 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.
• Autonomy and independence - Cooperatives are autonomous, self-help organizations controlled by their members. If they enter to 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 - Cooperatives work for the sustainable development of their communities through policies approved by their members.