What is a Cooperative?
A cooperative is a unique form of business known as user-owned, user-benefited, and user-controlled
Benefits from the cooperative are returned to the members/patrons based on their use of the cooperative during the year
A cooperative is democratically controlled by their members/patrons through a one-member/one-vote policy
Members/patrons own the cooperative through their financial investment in the business
Source: Montana Cooperative Development Center
The 7 Cooperative Principles
Open & Voluntary Membership
- Membership in a cooperative is open to all people who can reasonably use its services and stand willing to accept the responsibilities of membership, regardless of race, religion, gender, or economic circumstances.
Democratic Member Control
- Cooperatives are democratic organizations controlled by their members, who actively participate in setting policies and making decisions.
- Representatives (directors/trustees) are elected among the membership and are accountable to them.
- In primary cooperatives, members have equal voting rights (one member, one vote); 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 remains the common property of the cooperative. Members allocate surpluses for any or all of the following purposes: developing the cooperative; setting up reserves; benefiting members in proportion to their transactions with the cooperative; and supporting other activities approved by the membership.
Autonomy & 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 as well as their unique identity.
Education, Training, & Information
- Education and training for members, elected representatives (directors/trustees), CEOs, and employees help them effectively contribute to the development of their cooperatives.
- Communications about the nature and benefits of cooperatives, particularly with the general public and opinion leaders, help boost cooperative understanding.
Cooperation Among Cooperatives
- By working together through local, national, regional and international structures, cooperatives improve services, bolster local economies, and deal more effectively with social and community needs.
Concern for Community
- Cooperatives work for the sustainable development of their communities through policies supported by the membership.