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Co-operative Principles and Values - Revisions

ICA has undertaken three reviews of the Co-operative Principles: 1937, 1966 and 1995. These reviews modernised the idea of Co-operation, maintained its relevance and proivide an up-to-date test of whether an organisation qualified to call itself a co-operative. 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.

Rochdale Principles of Co-operation 1937

  1. Open Membership
  2. Democratic Control (One Man, One Vote)
  3. Distribution of the surplus to the members in proportion to their transactions
  4. Limited Interest on Capital
  5. Political and Religious Neutrality
  6. Cash Trading
  7. Promotion of Education
Other features of the Rochdale system were also endorsed, but not given the status of Principles. These included:
  1. trading exclusively with members
  2. voluntary membership
  3. 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.

The Present Applications of the Rochdale Principles (1937)     > > >
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Co-operative Principles 1966

  1. 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.
  2. 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.
  3. Share capital should only receive a strictly limited rate of interest, if any.
  4. 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.

  5. 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.
  6. 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.
Report of the ICA Commission on Co-operative Principles (1966)     > > >
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Statement on the Co-operative Identity 1995

The current Statement on the Co-operative Identity was adopted at the 1995 Congress and General Assembly of the International Co-operative Alliance, held in Manchester to celebrate the Alliance's Centenary. Recommended to the Congress by the ICA Board, the Statement was the product of a lengthy process of consultation involving thousands of co-operators around the world. The process was chaired by Ian MacPherson of Canada, who prepared numerous drafts of the Identity Statement and its Background Paper in an effort to understand the state and needs of the co-operative movement at the end of the twentieth century.

Co-operative Principles for the 21st Century     > > >

Last Updated: 16 August 2004