A co-operative is an autonomous association of people who voluntarily join together to meet their common economic, social, and cultural needs through a jointly owned and democratically controlled business. Co-operatives are guided by principles of self-help, self-responsibility, democracy, equality, equity, and concern for community. The Finnish Co-operatives Act implements these basic co-operative values and principles to define co-operatives as businesses with voluntary and open membership that are owned and controlled by their members.

2. 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.
International Co-operative Alliance, ICA, 1995
By their own efforts, but joined together!

3. Co-operatives are based on the following values:
Self-help, self-responsibility, democracy, equality, equity, solidarity,
honesty, openness, social responsibility and caring for others.
The co-operative principles are guidelines by which co-
operatives put their values into practice:
Voluntary and open membership, democratic member control,
member economic participation, autonomy and independence,
education, training and information, co-operation among co-
operatives and concern for community.
Basic co-operative values were implemented in the Co-
operatives Act. A co-operative can find original success factors
and competitive edge by adhering to the Co-operatives Act and
by adopting the basic, co-operative idea.

4. ”Co-operative is an organisation whose membership
and share capital have not been determined in
advance. The purpose of a co-operative shall be to
promote the economic and business interests of its
members by way of the pursuit of economic activity
where the members make use of the services
provided by the co-operative or services the co-
operative arranges through a subsidiary or otherwise.
However, it may be stipulated in the rules of the co-
operative that its main purpose is the common
achievement of an ideological goal.”

5.  A co-operative is a business enterprise with economic interests
that is owned and democratically controlled by its members.
The starting point is equal cooperation of the members.
 The purpose is to promote the members’ economy by using the
services provided by the co-operative. Profit-making is not the
main goal.
 Power of decision is exercised by the principle: one member,
one vote even if the members have different number of shares.
The power of decision can, however, be differentiated by rules.
 Membership and share capital have not been determined in
advance.
 A co-operative shall, however, have no less than three
members.
 There is no requirement for minimum share capital in a co-
operative (in contrast to 8,000€ in a limited company).
To be
continued

6.  A co-operative can admit new members, membership is
voluntary and one can resign from a co-operative. One can also
be expelled from it.
 The surplus generated is normally allocated in proportion to the
members’ transactions with the co-operative.
 The members are not personally liable for the obligations of the
co-operative, unless extraordinary payments are stipulated in
the rules.
 All co-operatives have their own rules written with the
particular co-operative in mind.
 The Act applies to all co-operatives.

7.  Consumer co-operative (for instance a retail co-operative)
where a customer of the co-operative is also a member.
 Service co-operative (for instance a co-operative bank or an
indemnity insurance company), where those using the services
of the co-operative are members.
 Producer co-operative (for instance a co-operative creamery),
where the producers of raw material are members .
 Consumer and producer co-operatives have their roots in the
early 20th century when the Finnish co-operative movement
was born.
 New generation co-operatives are ”new wave” co-operatives
that have been set up in different lines of business since the late
1980s.