The document outlines seven principles of cooperatives: 1. Voluntary and open membership for all who meet membership qualifications regardless of attributes. 2. Democratic structures with one member, one vote and elected officers and managers. 3. Limiting interest on member share capital to prevent domination by wealthy members. 4. Equitable sharing of cooperative surplus or savings through member-decided allocation. 5. Education of members and the public on cooperative principles and techniques. 6. Promotion of cooperation between cooperatives locally, nationally, and internationally. 7. Concern for sustainable community development through member-approved policies.

1. Principles of Cooperatives
The first principle is anchored on voluntarism. This means that each
member of a cooperative becomes a member voluntarily and is not
restricted by social, political or religious discrimination . In fact anyone who
meets the qualifications set by a cooperative’s bylaws can be a member if
he willingly shoulders their responsibility.
The second principle is democracy. Coops are democratic organizations
with officers and managers elected or appointed in a manner agreed on by
members. Each member, no matter the amount of his share, is entitled to
one vote.
The third principle is the limitation of share capital interest. In the context of
cooperatives, interest on a member share capital is limited so that no
person- especially those with money- can have an overwhelming equity in
the coop. This prevents the domination of the coop’s affairs by wealthy
members at the expense of poorer members and the organization as
whole.
The fourth principle, essentially a manifestation of the third principle,
revolves on the sharing all location of cooperatives surplus or savings. At
bottom, it mandates distribution of surplus equitably so that no member,
gains at the expense of another. Surplus is, by decision of the member,
used for developing the coop’s business interests, providing common
services to members in proportion to their transactions with the
cooperatives.
The fifth principle makes provision for the education and training of
cooperatives members, officers and employees, and of the general public
in the principles and techniques of cooperation.
The sixth principle harps on the promotion of cooperation between
cooperatives at local, national and international levels.
The seventh principle is the concern for community by working for its
sustainable development through policies approved by the cooperative
members.

2. Objectives of a Cooperative
The primary objective of every Cooperative is to provide goods and services to its members and thus
enable them to attain increased income and savings, investments, productivity and purchasing power
and promote among them equitable distribution of net surplus through maximum utilization of
economies of scale, cost-sharing and risk-sharing without however, conducting the affairs of the
cooperative for eleemosynary or charitable purposes.
Objectives of a Cooperative
Every Cooperative shall conduct its affairs in accordance with Filipino culture and experience and the universally
accepted principles of cooperation such as:
Open and Voluntary membership- membership in a cooperative shall be voluntary and available to all
individuals regardless of their political, racial or religious background or beliefs.
Democratic Control- cooperatives are democratic organizations. Its affairs shall be administered by
persons elected or appointed in a manner agreed upon by members. Members of primary cooperatives
shall have equal voting rights on an one-member-one vote principle, while a secondary or tertiary
cooperative shall have voting rights as delegate of members-cooperatives, but such cooperatives shall
have only five (5) votes. The votes cast by the delegates shall be deemed as votes cast the members
thereof.
Member Economic Participation- members contribute equitably to and 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 the following purposes: developing their 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 as a approved by the membership.
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 the members and maintain
their cooperative independence.
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.
Cooperation among Cooperative - cooperatives serve their members more effectively and strengthen the
cooperative movement by working together through local, national, regional, and international structures.
Concern for the Community- cooperatives work for the sustainable development of their communities
through policies approved by their members.