What is a cooperative?

1. Definition of the Co-op, Co-op Principles, and Co-op Values

"Statement on the Co-operative Identity (SCI)"

 

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.

 

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.

 

Principles

The co-operative principles are guidelines by which co-operatives put their values into practice.

1. 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.

 

2. 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.

3. 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.

4. Autonomy and Independence

 

Co-operatives are autonomous, self-help organisations controlled by their members. If they enter into 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.

5. 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.

6. 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.

7. Concern for Community

 

Co-operatives work for the sustainable development of their communities through policies approved by their members.

 

 

The "Statement on the Co-operative Identity (SCI)" was adopted in the 1995 centennial congress and general assembly of the International Co-operative Alliance (ICA) in Manchester, England. The SCI was produced after a lengthy consultation of ICA with thousands of cooperators worldwide.

 

The ICA is the world's largest body of co-ops and, since its creation in 1895, has been considered the final authority in defining co-ops and for elaborating the "Co-op Principles" upon which co-ops should be based. The ICA had previously made two other formal declarations on the Principles--in 1937 and 1966. The two earlier versions and the 1995 reformulation of the Principles were efforts to explain the Principles amid the contemporary and changing world, and fast-growing worldwide co-op movement.

Images: AWCF photobank

Economic and social benefits await members of co-ops, such as these members of Tagum Cooperative, one of the Philippines's
biggest and most gender-sensitve co-ops.

 

2. Co-ops in the Philippines

(Source of data and images: Cooperative Development Authority)

As of December 2018: Total Number of Operating Co-ops 18,065

Operating co-ops by region and by type:

Reporting co-ops by region:

Note: One coop in Region 9 have negative 630 Million pesos Net Loss

Reporting co-ops by type:

Reporting co-ops by asset size:

 

 

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