Cooperatives are formed based on the core values of self-help, self-responsibility, democracy, equality, equity and solidarity. They operate according to seven agreed-upon principles: voluntary and open membership; democratic member control; members' economic participation; autonomy and independence; education, training and information; cooperation among cooperatives; and concern for community. Cooperatives work to meet members' mutual social, economic and cultural needs in a participatory manner where members share the risks and benefits equally.

1. Philosophy

2. The principle of co-
operation is as old as
human society; it is the
basis of domestic and social
life. Any co-operation
effort is ultimately the
group instinct in man,
which enables him to live
together, work together
and help each other in
times of stress and strain.

3. Cooperatives are formed to meet
people’s needs. They are based on the
powerful idea that a group of people from
diverse backgrounds can achieve goals
that none of them could achieve alone. It
is an effective way for people to control
their economic livelihoods.

4. The theory underlying co-
operation is that weak individuals
are enabled to improve their
individual productive capacity by
combining among themselves
and bringing into this
combination a moral effort and a
progressively developing
realization of moral obligation to
work or act together; to be of
assistance or be willing to assist.

5. Co-operation is rooted in a common
recognition by the participants of the
desirability of improving their
condition and general agreement
among them as to how that
improvement can best be effected.

6. • Co-operation is an
organization of individuals,
who get together in a
participatory process, to
meet common needs.
• They are based on the
powerful idea that together, a
group of people can achieve
goals that none of them
could achieve alone.
• Cooperatives are formed to
meet peoples’ mutual needs.

7. Eventually, people
banded together in
Informal groups
To achieve socio-
economic goals.
Many of these groups
gradually evolved into
formal organization called
cooperatives.

8. Cooperatives
are an almost universal form of organization today found in 3 Million cooperatives on
earth and used by many people in many ways.
There is no end to the ways in which cooperative idea can be made to benefit people
in their everyday needs in life.

11. The cooperative movement is far from being a marginal
phenomenon, at least 12% of humanity is a cooperator of any of the 3
million cooperatives on earth.

12. Co-operatives help counterbalance the massive growth of inequality
between the world’s rich and poor, an issue that, if not addressed, has
major economic, social, cultural, environmental, and political
consequences (ICA). Co-operatives are active in every sector of the
global economy. A key distinguishing feature is that co-operatives
create wealth for the many members of co-operatives who engage in
co-operative businesses as service users, producers, independent
business owners, consumers, and workers, not solely for the few who
are rich enough to invest capital in investor-owned enterprises.

14. people-centred enterprises
driven by values & shared principles
act together to build a better world
through cooperation
to create sustainable enterprises
Ref. What is a cooperative? | ICA

15. But what does it mean? Explaining what a cooperative is :
o Cooperatives are people-centred enterprises owned, controlled and run by
and for their members to realize their common economic, social, and cultural
needs and aspirations.
o As businesses driven by values, not just profit, cooperatives share
internationally agreed principles and act together to build a better world
through cooperation. Putting fairness, equality and social justice at the heart of
the enterprise
o Cooperatives around the world are allowing people to work together to
create sustainable enterprises that generate long-term jobs and prosperity.
o Managed by producers, users or workers, cooperatives are run according to
the 'one member, one vote' rule

16. Art 3 RA 9520
o Autonomous and duly registered
association of persons
o Voluntarily joined together
o Making equitable contributions
patronizing their products and services
o Accepting a fair share of the risks and
benefits of the undertaking
o In accordance with universally accepted
cooperative principles
to achieve their social, economic, and
cultural needs and aspirations

17. Cooperatives are
based on basic values
and principles.
Cooperative values are
general norms that
cooperators,
cooperative leaders
and cooperative staff
should share and which
should determine their
way of thinking and
acting.
The values, which are
articulated by the ICA in a
statement in 1995. The
values statement further
articulates values of
personal and ethical
behavior that cooperators
actualize in enterprises.
They describe the kind of
people cooperators strive to
be and the traits they hope
to encourage through
cooperation.

18. Cooperatives are based on the values of self-help,
self-responsibility, democracy, equality, equity,
and solidarity. In the tradition of their founders,
cooperative members believe in the ethical values of
honesty, openness, social responsibility and caring
for others.

19. Foundation: Ethical values of honesty,
openness, social responsibility and caring
for others.
Building Blocks: based on the values of self-help, self-
responsibility, democracy, equality, equity, and solidarity
o Open and Voluntary Membership
o Democratic Member Control
o Members' Economic Participation
o Autonomy and Independence
o Education, Training, and Information
operation Among Cooperatives
o Concern for Community.
Cooperative Principles: The cooperative principles
are guidelines by which cooperatives put their values into
practice

20. • The co-operative movement is not a rules-based movement, but a
values and principles-based movement
• Cooperators should have a deeper understanding of the nature and
benefits of co-operation and learn to apply them in today’s fast
changing world.

22. Applying the Cooperative Principles
While the seven co-op principles provide general outlines for how each organization should operate,
there are many ways to apply these ideas practically. Here are some of the ways you can use the
principles within your co-op to create a stronger organization:
Voluntary and open membership: Create a culture of inclusivity and respect within your membership.
Joining members should not be subject to discrimination of any kind. One of the best ways to ensure
there is no such judgment of new volunteers is by starting with the mindset of your existing
membership. They should understand that every individual is to be treated equally in all ways and given
the same opportunities. Also, establish a policy for member removal by way of a vote. If you have a
predetermined list of breaches of responsibility, it will be easy to spot any potential for discriminatory
acts.

23. Democratic member control: For a democratic structure to
work successfully, your co-op needs to focus on
communication and engagement. It’s important to promote
consideration and discussion among your membership. You
can do so by taking advantage of technological
developments and online communication as well as holding
in-person meetings and assemblies.
Members’ economic participation: Since cooperatives are
not solely concerned with economics, neither is this
principle. It works in conjunction with the others. Economic
contributions from individuals are considered membership
shares, which go directly towards financing the co-op and
benefitting the members. Your cooperative should require
limited participation from all members indiscriminately, and
in return, grant them the right to vote.

24. • Autonomy and independence: Members of cooperatives
are the deciding forces behind new policies and decisions.
They should be able to run their cooperative without the
influences of wider government policy or other organizations.
However, your co-op should also engage with government
and businesses. To maintain independence, ensure your co-
op is creating relationships with boundaries and speaking
with a single, unified voice.
• Education, training and information: Cooperatives need to
provide educational resources for all members. Each
individual should have a proficient understanding of co-
operative identity, the seven principles and values. You can
use technological advancements to provide programs and
resources as well as host group sessions, where members
can interact with one another and learn together. The in-
person option will help build trust and community among your
members.

25. • Cooperation among cooperatives: When cooperatives
work together, there are several ways to create an
effective relationship. All organizations should practice
openness and transparency in all business matters, and
the general memberships should approve all strategies.
All organizations should also practice representing each
co-op’s collective interests, flexibility and willingness to
compromise in working towards a mutual benefit.
• Concern for community: While co-ops should support
their members and local community, they should also be
concerned with the development of the cooperative
movement on a global scale. They should promote peace
and social justice in their operations and advocate for
cooperatives. By maintaining a focus on spreading
information and educating others, co-ops can help create
a better community.

26. o All cooperatives focus on their internal communities, but they are also concerned with their local communities
outside of the organization. Co-ops source materials from and invest in local suppliers to contribute to the
community’s sustainability. While the group works as a unit, each member should also take it upon themselves to
contribute to the community in some way. The cooperative and surrounding network should encourage them to
serve with pride.
o But sustainability doesn’t stop at the local level. Community goes as far as a worldwide reach, and cooperatives
should think and act on both a local and global level. Members can work towards approving policies that consider
the community at large.
o Maintaining local and global concern is important for several reasons. As other principles dictate, cooperatives are
independent organizations that work best in a collaborative effort. So, each co-op should have their own way of
contributing to sustainable development, but they should also work within their networks. This enables
cooperatives to take action on a level that can affect the world. Not only are co-ops directly affected by community
development, but they can also have a great impact if they work together.

27. Reference
• https://uncoopsyear.wordpress.com/category/cooperatives-in-social-
development/