What is a Co-operative?
A co-operative is an organization formed by people coming together to meet their common needs. Locally owned and democratically controlled by the members who use its services, co-operatives are founded on a common idea - that people know what's best for them and can work together to achieve their goals. Based on co-operative principles, they empower individuals, and encourage healthier and stronger communities, by enabling them to pool their resources and share risks.
Co-operatives and credit unions are active in every sector of the economy, including finance, insurance, agri-food and supply, wholesale and retail, housing, health, and the service sector. They can provide virtually every product or service, and can be either non-profit or for-profit enterprises.
Unlike the private, public or voluntary sectors, all co-operative organizations around the world are guided by the same seven principles:
- Voluntary and open membership
- Democratic member control
- Member economic participation
- Autonomy and independence
- Education and training
- Co-operative among co-operatives
- Concern for community
Collectively, there are over 10,000 co-operatives and credit unions in Canada, providing products and services to over 10 million Canadians.
Statement of Co-operative Identity
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, democracy, equality, equity, and solidarity. Co-operative members believe in the ethical values of honesty, openness, social responsibility, and caring for others.
Principles
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 also organized in a democratic manner.
3rd Principle: Member Economic Participation
Members contribute equitably to, and democratically control, the capital of their co-operative. They 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 their co-operative; benefiting members in proportion to their transactions with the co-operative; 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-operative autonomy.
5th Principle: Education, Training and Information
Co-operatives provide education and training for their members, elected representatives, managers, and employees so they can contribute effectively to the development of their co-operatives. They inform the general public - particularly young people and opinion leaders - about the nature and benefits of co-operation.
6th Principle: Co-operation Among Co-operatives
Co-operatives serve their members most effectively and strengthen the co-operative movement by working together through local, national, regional, and international structures.
7th Principle: Concern for Community
While focusing on member needs and wishes, co-operatives work for the sustainable development of their communities.