Introduction To Cooperatives - Theories and Principals

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INTRODUCTION TO COOPERATIVES: THEORIES AND PRINCIPLES (CM 102)

READING MATERIALS

Cooperative Identity, Values & Principles

International Cooperative Allegiance


● Global steward of the Statement on the Cooperative Identity
○ The values and principles of the cooperative movement
○ Adopted in 1995
● Released the Guidance Notes on the Cooperative Principles in 2016
○ Guidance on the application of the Principles in contemporary terms for
the 21st century.
● Cooperative Marque
○ The objective is to create a new image that will become the new global
cooperative visual identity.
○ Provide a 'promotional umbrella' and 'unity of purpose' for the global
cooperative movement.

Cooperative (According to ICA) Cooperative Values


● People-centered enterprises 1. Self-help
● Business-driven by values 2. Self-responsibility
● Share internationally agreed 3. Democracy
principles 4. Equality
● Sustainable enterprises 5. Equity
● 12% of humanity is a 6. Solidarity
cooperator

Cooperative Principles
1. Voluntary Open Membership
2. Democratic Member Control
● Members have equal voting rights
● One member, one vote
3. Member Economic Participation
● Members contribute equitably to, and democratically control, the capital of
their cooperative.
● Members receive limited compensation on capital subscribed.
● Surpluses are used to develop the cop and set up reserves and other
activities.
4. Autonomy and Independence
● Any engagement with other organizations is done in accordance with
decisions made by the members (democratically elected).

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5. Education, Training, and Information
● Provide education and training for members, mgt team, and employees.
6. Cooperation among Cooperatives
● Members work together thru local, national, regional, and international
structures.
7. Concern for Community
● Work for sustainable development of their communities thru policies
approved by the members.

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