Seven Cooperative Principles
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.
Indiana’s electric cooperatives are part of the cooperative family of businesses and services that have changed the world. Electric cooperatives are different than other forms of utilities, and member-owners of cooperatives notice this difference. For one thing, co-ops put consumers first because the consumers are the owners. They don’t answer to Wall Street investors.
In addition, co-ops are locally owned and operated. When members call the co-op, they are talking with their neighbors. And both of these aspects combine to make co-ops more responsive since members are the owners and they are accountable to their own neighbors and communities.
In the United States, alone, there are 130 million people that are members of cooperatives. That is almost one of every two residents of the U.S. population. Besides electric cooperative utilities, credit unions are also cooperatives. There are cooperatives in agriculture, housing, purchasing, health care, hardware and retail food.
Cooperatives all around the world adhere to a basic set of seven principles. They are:
Voluntary and Open Membership
Open to all without gender, social, racial, political, or religious discrimination.
Democratic Member Control
One member, one vote.
Members’ Economic Participation
Members contribute equitably to, and democratically control, the capital of the cooperative. The economic benefits of a cooperative operation are returned to the members, reinvested in the co-op, or used to provide member services.
Autonomy and Independence
Cooperatives are autonomous, self-help organizations controlled by their members.
Education, Training, and Information
Cooperatives provide education and training for members so they can contribute effectively to the development of their cooperatives. They inform the general public about the nature and benefits of cooperation.
Cooperation Among Cooperatives
Cooperatives serve their members most effectively and strengthen the cooperative movement by working together through local, regional, national and international structures.
Concern for Community
While focusing on member needs, cooperatives work for the sustainable development of their communities through policies accepted by their members.