The Seven Cooperative Principles
Cooperatives around the world operate according to a shared set of guiding values known as the Seven Cooperative Principles. These principles serve as a framework for how cooperatives operate, govern themselves, and serve their members and communities. They were formally adopted by the International Cooperative Alliance (ICA) in 1995 as part of the Statement on the Cooperative Identity.
At their core, cooperatives are businesses owned and controlled by the people who use them. The seven principles help ensure that cooperatives remain democratic, member-focused, and committed to strengthening communities.
1. Voluntary and Open Membership
Cooperatives are voluntary organizations that are open to anyone who can use their services and is willing to accept the responsibilities of membership. They welcome members without discrimination based on gender, social background, race, political affiliation, or religion.
This principle reflects the cooperative belief that people should have the opportunity to participate in economic activities that benefit them and their communities. Because cooperatives exist to serve their members, they remain accessible to individuals who share common needs or goals.
Why it matters:
Open membership ensures that cooperatives remain inclusive organizations that serve people rather than excluding them.
2. Democratic Member Control
Cooperatives are democratic organizations controlled by their members. Members actively participate in setting policies and making decisions about the organization. Typically, cooperatives follow the principle of “one member, one vote,” meaning each member has an equal voice regardless of how much capital they contribute.
Members elect representatives—such as a board of directors—who are accountable to the membership and responsible for overseeing the cooperative.
Why it matters:
Democratic governance ensures that cooperatives remain accountable to the people they serve rather than outside investors.
3. Member Economic Participation
Members contribute equitably to the capital of their cooperative and democratically control how that capital is used. Rather than focusing solely on investor returns, cooperatives distribute benefits based on member participation in the business.
For example, profits may be reinvested in the cooperative, used to improve services, or returned to members as patronage refunds based on how much they use the cooperative.
Why it matters:
This principle aligns the cooperative’s financial success directly with the success of its members.
4. Autonomy and Independence
Cooperatives are independent organizations controlled by their members. Even when cooperatives enter partnerships, raise capital, or work with governments or other organizations, they do so in ways that preserve democratic member control and cooperative independence.
This independence ensures that decisions remain focused on the needs and interests of the members.
Why it matters:
Maintaining autonomy protects the cooperative’s mission and prevents outside influences from overriding member priorities.
5. Education, Training and Information
Cooperatives are committed to educating and training their members, elected representatives, managers, and employees so they can contribute effectively to the cooperative’s development. They also work to inform the public—especially young people and community leaders—about the nature and benefits of cooperation.
Education strengthens the cooperative movement by ensuring members understand how cooperatives function and how they can actively participate.
Why it matters:
Knowledge empowers members to make informed decisions and sustain strong, well-governed cooperatives.
6. Cooperation Among Cooperatives
Cooperatives serve their members most effectively when they work together. This principle encourages cooperatives to collaborate through local, regional, national, and international networks.
By sharing resources, knowledge, and services, cooperatives strengthen the overall cooperative movement and expand their impact.
Why it matters:
Working together allows cooperatives to achieve goals that would be difficult for a single organization to accomplish alone.
7. Concern for Community
While cooperatives focus on meeting the needs of their members, they also work to improve the communities where they operate. This includes supporting sustainable development, economic opportunity, and community well-being through policies approved by the membership.
Many cooperatives support local initiatives, invest in community projects, and promote responsible environmental and economic practices.
Why it matters:
Strong communities create stronger cooperatives—and cooperatives play an important role in building resilient local economies.
The Cooperative Difference
The Seven Cooperative Principles help distinguish cooperatives from other types of businesses. While traditional corporations are typically driven by investor returns, cooperatives focus on member benefit, democratic control, and community impact.
Together, these principles guide cooperative organizations around the world—from agricultural cooperatives and credit unions to electric cooperatives and retail cooperatives—ensuring they remain people-centered enterprises.
