Rochdale Principles
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The Rochdale Principles are a set of ideals for the operation of cooperatives. They were first set out by the Rochdale PioneersRochdale Society of Equitable Pioneers in Rochdale, England, in 1844 and have formed the basis for the principles on which co-operatives around the world operate to this day. The implications of the Rochdale Principles are a focus of study in Co-operative economics. The original Rochdale Principles were officially adopted by the International Co-operative Alliance (ICA) in 1937 as the Rochdale Principles of Co-operation. Updated versions of the principles have been adopted by the International Co-operative Alliance in 1966 as the Co-operative Principles and in 1995 as part of the Statement on the Co-operative Identity.
[edit] Original version (1844)
- Open membership.
- Democratic control (one man, one vote).
- Distribution of surplus in proportion to trade.
- Payment of limited interest on capital.
- Political and religious neutrality.
- Cash trading (no credit extended).
- Promotion of education.
[edit] ICA revision (1937)
- Open membership.
- Democratic control (one man, one vote).
- Distribution of surplus in proportion to trade.
- Payment of limited interest on capital.
- Political and religious neutrality.
- Cash trading (no credit extended).
- Promotion of education.
Other features of the Rochdale system were also endorsed, but not given the status of Principles. These included:
- trading exclusively with members
- voluntary membership
- sale at current market price
Disagreement arose, however, on the question of "inalienable assets", because of different practices in different ICA member organisations. Finally it was agreed to recommend that co-operatives should make regular allocations to inalienable reserves and seek legislative provision for indivisible collective assets.
[edit] ICA revision (1966)
[edit] 1st Principle: Open, voluntary membership
Membership of a co-operative society should be voluntary and available without artificial restriction or any social, political or religious discriminations, to all persons who can make use of its services and are willing to accept the responsibilities of membership.
[edit] 2nd Principle: Democratic governance
Co-operative societies are democratic organisations. Their affairs should be administered by persons elected or appointed in a manner agreed 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.
[edit] 3rd Principle: Limited return on equity
Share capital should only receive a strictly limited rate of interest, if any.
[edit] 4th Principle: Surplus belongs to members
Surplus or savings, if any, arising out of the operations of a society belong to the members of that society and should be distributed in such manner as would 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 Co-operative.
- (b) By provision of common services; or
- (c) By distribution among the members in proportion to their transactions with the society.
[edit] 5th Principle: Education of members and public in cooperative principles
All co-operative societies should make provision for the education of their members, officers, and employees and of the general public, in the principles and techniques of Co- operation, both economic and democratic.
[edit] 6th Principle: Cooperation between cooperatives
All co-operative organisations, in order to best serve the interests of their members and their communities should actively co-operate in every practical way with other co- operatives at local, national and international levels.
[edit] ICA revision (1995) The Statement on the Co-operative Identity
The definition of a co-operative as established in the 1995 Co-operative Principles has been included in a number of policy documents including the United Nations Guidelines, the International Labour Organisation Recommendation 193 on the Promotion of Co-operatives, the European Co-operative Statute and a number of national laws.
[edit] 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.
[edit] Values
Co-operatives are based on the values of self-help, self-responsibility, democracy, equality, equity and solidarity. In the tradition of their founders, co-operative members believe in the ethical values of honesty, openness, social responsibility and caring for others.
[edit] Principles
The co-operative principles are guidelines by which co-operatives put their values into practice.
[edit] 1st Principle: Voluntary and Open Membership
Co-operatives are voluntary organisations, 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.
[edit] 2nd Principle: Democratic Member Control
Co-operatives are democratic organisations 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 organised in a democratic manner.
[edit] 3rd Principle: Member Economic Participation
Members contribute equitably to, and democratically control, the capital of their co-operative. At least part of that capital is usually the common property of the co-operative. Members 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, possibly by setting up reserves, part of which at least would be indivisible; benefiting members in proportion to their transactions with the co-operative; and supporting other activities approved by the membership.
[edit] 4th Principle: Autonomy and Independence
Co-operatives are autonomous, self-help organisations controlled by their members. If they enter to agreements with other organisations, 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.
[edit] 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.
[edit] 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.
[edit] 7th Principle: Concern for Community
Co-operatives work for the sustainable development of their communities through policies approved by their members.
[edit] External links
International Co-operative Alliance (ICA)
