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SEVEN GUIDING PRINCIPLES OF CO-OPS
Cooperatives are great for organizations that believe in bettering their members and the surrounding communities. The seven principles of a cooperative are explained below.
1) Voluntary and Open Membership: Cooperatives are voluntary organizations open to all people who can reasonably use the service and accept membership responsibilities without gender, social, racial, political or religious discrimination.
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2) Democratic Member Control: Cooperatives are democratically controlled by their members, who actively participate in setting policies and making decisions. Men and women equally share control of co-ops at all levels.
3) Member Economic Participation: Members contribute equally to and democratically control the capital of their cooperatives. At least part of that capital is usually the common property of the co-op. Members vote for leaders, but all primary members have equal voting rights.
4) Autonomy and Independence: Cooperatives are autonomous, self-help organizations controlled by their members. They do not have the typical “profits above all else” investors to worry about.
5) Education, Training, and Information: Cooperatives provide education and training for members, elected representatives, managers, and employees. They inform the general public about the nature and benefits of cooperation.
6) Cooperation Among Cooperatives: Cooperatives serve their members effectively and strengthen the cooperative movement by working together through local, national, regional and international structures.
7) Concern for Community: Cooperatives work for the sustainable development of their communities through policies and programs that address social, economic, environmental and cultural needs.
ADVANTAGES & DISADVANTAGES
Cooperatives are common in industries where it is difficult to form a monopoly. For example, in the agricultural industry, there are many types of produce coming from many farms. Coops also can be helpful in industries with small businesses that individually struggle to compete against larger ones.
