The Co-operative Identity in the Twenty-First Century

The International Co-operative Alliance, at its Manchester Congress in September,1995, drafted a Statement on Co-operative Identity. The Statement includes a definition of cooperatives, a listing of the movement's key values, and a revised set of principles intended to guide co-operative organizations at the beginning of the twenty-first century.

Since its creation in 1895, the International Co-operative Alliance has been the final authority for defining co-operatives and for elaborating the principles upon which co-operatives should be based. The Alliance has made two formal declarations on co-operative principles, the first in the 1930s, the second in the 1960s. As in the case of the 1995 statement, the two earlier versions were attempts to explain how cooperative principles should be interpreted in the context of the contemporary world.

These periodic revisions of principles are a source of strength to the co-operative movement. They demonstrate how co-operative thought can be applied in a changing world; they suggest how co-operatives can organize themselves to meet new challenges.

The co-operative movement is constantly changing and evolving. Beneath the changes, however, lies a fundamental respect for all human beings and a belief in their capacity to improve themselves economically and socially through mutual help. Further, the co-operative movement believes that democratic procedures applied to economic activities are feasible, desirable, and efficient. It believes that economic organizations, democratically administered, make a contribution to the common good. The 1995 Statement of Principles is based on these core philosophical perspectives.

Definition:
A co-operative 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.

Values:
Co-operatives are based on the values of self-help, self-responsibility, democracy, equality, equity, and solidarity. Co-operative members believe in the ethical values of honesty, openness, social responsibility, and caring for others.

Principles
The co-operative principles are guidelines by which co-operatives put their values into practice.

1st Principle: Voluntary and Open Membership
Co-operatives 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.

2nd Principle: Democratic Member Control
Co-operatives are democratic organizations 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 organized in a democratic manner.

3rd Principle: Member Economic Participation
Members contribute equitably to, and democratically control, the capital of their co-operatives. 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 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-operatives; and supporting other activities approved by the membership.

4th Principle: Autonomy and Independence
Co-operatives 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 co-operatives autonomy.