Features & Sacco Leadership

Understanding the 7 key principles of cooperatives

Principles of Cooperatives: Disadvantages of Cooperative Societie: How to shape your Co-op's identity: How To Choose The Right Co-op: Challenges facing cooperative societies in Kenya: SACCO governance: The foundation of cooperative success

Cooperatives are unique organizations where people come together voluntarily to achieve common goals and meet their shared needs. These organizations operate under a set of core principles that guide their operations and ensure they align with their values.

principles of cooperatives

  1. Voluntary and Open Membership

Cooperatives are open to anyone who is willing to use their services and take on the responsibilities of membership. This openness applies regardless of gender, social status, race, politics, or religion. Membership is based on willingness and ability to participate, not on exclusionary criteria.

2. Democratic Member Control

Each cooperative is governed by its members, who have an active role in decision-making and policy-setting. Members elect representatives, and each person has an equal vote, ensuring a democratic process. This principle ensures that cooperatives operate in a way that is accountable and transparent.

3. Member Economic Participation

Members contribute fairly to the cooperatives capital and share in its economic results. While they may receive limited returns on their contributions, any surplus is used to benefit the cooperative and its members. This might include reinvesting in the cooperative, creating reserves, or supporting other activities approved by members.

4. Autonomy and Independence

Cooperatives maintain their independence and self-governance. They only enter into agreements or raise capital from external sources on terms that do not compromise their democratic control or autonomy. This principle ensures that cooperatives remain true to their core values and remain under member control.

5. Education, Training, and Information

To be effective, cooperatives invest in the education and training of their members, representatives, managers, and employees. They also work to educate the public, especially young people and leaders, about the benefits and principles of cooperation. This helps build a knowledgeable community that supports cooperative goals.

6. Cooperation among Cooperatives

Cooperatives enhance their effectiveness by working together. They collaborate locally, nationally, and internationally to strengthen the cooperative movement and support one another. This principle promotes mutual support and collective growth within the cooperative sector.

7. Concern for Community

Cooperatives are committed to the sustainable development of their communities. They make decisions and implement policies that reflect their responsibility towards social and environmental issues, aiming to contribute positively to the broader community.

 

Andrew Walyaula
Author: Andrew Walyaula

Andrew Walyaula is a seasoned multimedia journalist. waliaulaandrew0@gmail.com

Andrew Walyaula

About Author

Andrew Walyaula is a seasoned multimedia journalist. waliaulaandrew0@gmail.com

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