1.1 What are co-operatives?

To make sure we are all on the same page, I will start with a few observations about the nature of co-operatives.

In 1995, the International Co-operative Alliance provided a framework for conceptualising co-operatives as different from other types of economic organisation. A summary is provided in Table 1. The values are intended to inform the principles through which co-operatives carry out their activities.

Table 1 The definition, values and principles of co-operatives
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

Self-help, self-responsibility, democracy, equality, equity, and solidarity

Ethical values: honesty, openness, social responsibility, and caring for others
Principles

Voluntary and open membership

Democratic member control

Member economic participation

Autonomy and independence

Education, training and information

Co-operation among co-operatives

Concern for community
(Source: Hartley, 2012, Table 1)

Table 1 demonstrates that there are particular aspects to co-operatives that distinguish them from other commercial organisations or businesses. This difference is evident most particularly in how co-operatives are governed; for example, the joint ownership and democratic control, and the strongly ethical approach to business and the wider community. Some of the values and principles may be found or espoused in other enterprises, but the overall package is unique to co-operatives.

Introduction

1.2 How are co-operatives organised?