by Ann Hoyt, Board Vice-President
In October over one billion co-op members celebrate co-op month. Let’s join them by remembering the values that define cooperatives throughout the world. Is there a reason to value our Co-op more than because it’s convenient, it sells the food I want, or it’s cool to be anOwner?
One reason for the lasting appeal of cooperatives is their adherence to deeply held principles that have defined this business model since the middle of the 19th Century. Since its creation in 1895, the International Cooperative Alliance (ICA) has been the final authority defining cooperatives and their underlying values and principles.
In 1995 the ICA Congress adopted a "Statement of Cooperative Identity" to guide modern cooperative businesses. It includes a definition of cooperatives, a set of common values and seven principles under which cooperatives operate.
It is in the Statement’s description of cooperative and ethical values that we engage the hearts, conscience, and loyalty of current and future cooperative members.
What are those values and why should they matter to us?
The cooperative values articulate the best in our belief system, the ideals of personal and social conduct to which we aspire. They are our statement of what we think is the right thing to do. The values include:
- Self-Help: People have the will and the capability to improve their destiny peacefully through joint action which can be more powerful than individual effort, particularly through collective action in the market.
- Self-Responsibility: Owners assume responsibility for their cooperatives and promote them among their friends and families.
- Democracy: Each Owner has an equal right to participate, to be informed, to be heard and to be involved in making decisions, Owners are the source of all authority in the cooperative. This basis in human personality is one of the main features distinguishing a cooperative from firms controlled primarily in the interests of capital.
- Equality: Equal rights and opportunities for people to participate democratically will improve the use of society's resources and foster mutuality, understanding, and solidarity.
- Equity: Fairness and justice drive the way people are treated including distribution of income and power in society and its economic life.
- Solidarity: There is strength in mutual self-help and that the cooperative has a collective responsibility for the well-being of its Owners. Further, individual cooperatives strive to create a united cooperative movement by working with other cooperatives to improve collective well-being.
The value statement also articulates values of personal and ethical behavior that cooperators actualize in their enterprises. They describe the kind of people we strive to be and the traits we hope to encourage—honesty, openness, social responsibility and caring for others—through cooperation.
Yes, we value our Co-op because it provides goods and services we want in a manner that meets our needs. Even more, we value it as part of an international movement which has been based on a shared set of values designed to ensure just, equitable, and honest businesses.
The International Cooperative Alliance Statement of Cooperative Identity
Adopted September 1995
DEFINITION: A cooperative 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: Cooperatives are based on the values of self-help, self-responsibility, democracy, equality, equity, and solidarity. In the tradition of their founders, cooperative members believe in the ethical values of honesty, openness, social responsibility, and caring for others.
PRINCIPLES: The cooperative principles are guidelines by which cooperatives put their values into practice.
FIRST PRINCIPLE: VOLUNTARY AND OPEN MEMBERSHIP
Cooperatives are voluntary organizations, open to all persons able to use their services and willing to accept the responsibility of membership, without gender, social, racial, political, or religious discrimination.
SECOND PRINCIPLE: 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. In primary cooperatives members have equal voting rights (one member, one vote) and cooperatives at other levels are organized in a democratic manner.
THIRD PRINCIPLE: MEMBER ECONOMIC PARTICIPATION
Members contribute equitably to, and democratically control, the capital of the cooperative. At least part of that capital is usually the common property of the cooperative. 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 the cooperative, possibly by setting up reserves, part of which at least would be indivisible, benefiting members in proportion to their transactions with the cooperative, and supporting other activities approved by the membership.
FOURTH PRINCIPLE: 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.
FIFTH PRINCIPLE: 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—particularly young people and opinion leaders—about the nature and benefits of cooperation.
SIXTH PRINCIPLE: COOPERATION AMONG COOPERATIVES
Cooperatives serve their members most effectively and strengthen the cooperative movement by working together through local, national, regional and international structures.
SEVENTH PRINCIPLE: CONCERN FOR COMMUNITY
While focusing on member needs, cooperatives work for the sustainable development of their communities through policies accepted by their members.