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Cooperative businesses
are special because they are owned by the consumers they serve and
because they are guided by a set of seven principles that reflect the
best interests of those consumers.
More than 100 million
people are members of 47,000 U.S. cooperatives, enabling consumers to
secure a wide array of goods and services such as health care,
insurance, housing, food, heating fuel, hardware, credit unions, child
care or utility service.
All cooperative
businesses adhere to these seven guiding principles:
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Voluntary and Open Membership — Cooperatives are voluntary organizations, open to all people able to
use their services and willing to accept the responsibilities of
membership, without gender, social, racial, political or religious
discrimination.
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Democratic Member Control —
Cooperatives are democratic organizations controlled by their members,
who actively participate in setting policies and making decisions. The
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.
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Members’ Economic Participation — Members contribute equitably to, and democratically
control, the capital of their cooperative. At least part of that
capital is usually the common property of the cooperative. 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 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.
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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.
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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.
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Cooperation Among Cooperatives — Cooperatives serve their members most effectively and strengthen the
cooperative movement by working together through local, national,
regional and international structures.
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Concern for Community — While focusing on member needs, cooperatives work for the sustainable
development of their communities through policies accepted by their
members.
Text taken from “Why
Cooperatives Are Special” from the National Rural Electric Cooperative
Association.
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