The 7 Cooperative Principles

There are many forms of organization that : from major credit unions, to agricultural cooperatives uniting far-flung family farms, to nonprofits directed by their volunteers, to a chain of independent retailers sharing a single brand, to small businesses owned by their workers.

With such a diverse array of businesses and organizations all flying the banner of 'co-op,' you might be wondering: what do all these groups have in common? What makes them all COOPERATIVE?

For those looking to understand the cooperative sector, there's no better place to start than with the seven cooperative principles.

ICA & the Origins of the Principles

The fundamental ideas of cooperatives have been around for hundreds of years. While several early groups weren’t capable of sustaining their businesses, scholars consider the Rochdale pioneers to be the first modern co-op. They formed in England in 1844 and established the base principles and structures for running an equitable and successful cooperative business. As interest in co-ops began to rise, a Rochdale member founded the International Co-operative Alliance (ICA) to help support the movement internationally.

Today, cooperatives around the world share several founding base principles and values adopted by the ICA in 1995. These groups are comprised of autonomous individuals and created based on the guiding standards of volunteerism, democracy, and a set of common cultural, social and economic needs.

The ICA’s Statement of Cooperative Identity outlines the general ideology of co-ops and how they should function. It identifies the cooperative 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.” Each cooperative principle helps to break down this idea into several standards that the organization should integrate into its practices.

The Seven Cooperative Principles

1. Voluntary & Open Membership

Anyone can join a co-op—they don’t discriminate based on gender, social, racial, political or religious factors.

2. Democratic Member Control

Members control their business by deciding how it’s run and who leads it.

3. Members' Economic Participation

All co-op members invest in their cooperative. This means people, not shareholders, benefit from a co-op’s profits.

4. Autonomy & Independence

When making business deals or raising money, co-ops never compromise their autonomy or democratic member control.

5. Education, Training and Information

Co-ops provide education, training and information so their members can contribute effectively to the success of their co-op.

6. Cooperation among Cooperatives

Co-ops believe working together is the best strategy to empower their members and build a stronger co-op economy.

7. Concern for Community

Co-ops are community-minded. They contribute to the sustainable development of their communities by sourcing and investing locally.