 
|
 |
 |
|
|
The cooperative movement began October 24, 1844, when a group of 28 laborers scrimped and saved a total of 28 pounds ($110) to form a local cooperative to help them survive in the low-wage textile factories of Rochdale, England. The prospective members had no example to guide them … only theory and hope to achieve their dream of operating a cooperative store. This group developed eight cooperative principles that provided the framework for the cooperative movement that we see today.
|
| |
Original Rochdale Cooperative Principles
Open, Voluntary Membership
A cooperative, society should be voluntary and available without artificial restriction or any social, political, racial or religious discrimination, to all persons who can make use of its services and are willing to accept the responsibilities of membership.
Democratic Control
Cooperative societies are democratic organizations. Their affairs should be administered by persons elected or appointed in a manner agreed to by the members and accountable to them. Members of primary societies should enjoy equal rights of voting (one member, one vote) and participation in decisions affecting their societies. In other than primary societies the administration should be conducted on a democratic basis in a suitable form.
Limited Return, If Any, On Equity Capital
Share capital should only receive a strictly limited rate of interest.
Net Surplus Belongs To User-Owners
The economic results arising out of the operations of a society belong to the members of that society and should be distributed in such a manner as to avoid one member gaining at the expense of others. This may be done by decision of the members as follows: a) by provision for development of the business of the cooperative; b) by provision of common services; or c) by distribution among the members in proportion to their transactions with the society.
Honest Business Practices
Cooperatives should deal openly, honestly, and honorably with their members and the general public.
Ultimate Aim Is To Advance Common Good
The ultimate aim of all cooperatives should be to aid in the participatory definition and the advancement of the common good.
Education
All cooperative societies should make provision for the education of their members, officers, and employees and of the general public in the principles and techniques of cooperation, both economic and democratic.
Cooperation Among Cooperatives
All cooperative organizations, in order to best serve the interest of their members and their communities, should actively cooperate in every practical way with other cooperatives at local, national, and international levels.
Over the years, the original Rochdale Cooperative Principles have evolved into the following, which are the basic cooperative principles used today.
|
| |
Today’s Cooperative Principles
Voluntary and Open Membership
Cooperatives 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.
Democratic Member Control
Cooperatives 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. Members have equal voting rights - one member, one vote.
Members' Economic Participation
Members contribute equally to, and democratically control, the capital of their cooperative. A cooperative business returns margins to their patrons. Any margins (or profits) are credited to each member's capital credit account. Each member's share of the capital credits for the year depends on the amount each individual paid into the cooperative during that year and on the total margins of the cooperative for the year. Capital credits are retained for a number of years and the money is used as operating capital. Retaining capital credits reduces borrowing needs. Capital credits are paid to all people who were members in a certain year. Each year members receive a notice showing the amount of capital credits that have been credited to their account for the past year.
Autonomy and Independence
Cooperatives 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 cooperative autonomy.
Education, Training, and Information
Cooperatives provide education and training for their members, elected representatives, managers, and employees so they can contribute effectively to the development of their cooperatives. They inform the general public about the nature and benefits of cooperatives.
Cooperation Among Cooperatives
Cooperatives serve their members most effectively and strengthen the cooperative movement by working together through local, national, regional, and international structures.
Concern for Community
While focusing on member needs, cooperatives work to improve the quality of life in the areas they serve.
|
| |
|
 |
