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Co-operatives are democratic organizations controlled by their members, actively participating in the definition of their policy and the decision on the principle of a vote. The men and women who serve as elected representatives are responsible for membership. Rochdale`s principles are a number of ideals for the operation of cooperatives. They were first established in 1844 by the Rochdale Society of Equitable Pioneers in Rochdale, England, and formed the basis of the principles on which cooperatives around the world continue to work. The implications of the Rochdale principles are a priority of the study in the cooperative economy. The original Rochdale principles were officially adopted in 1937 by the International Co-Operative Alliance (ICA) as Rochdale`s principles of cooperation. The updated versions of the principles were adopted by the ICA in 1966 as principles of cooperation and in 1995 as part of the Declaration on Cooperative Identity.  Here are the 7 principles of cooperatives that set them apart from other companies: all cooperatives around the world are guided by 7 voluntary principles of universal cooperation. These are at the center of a cooperative DNA and help decision-makers in cooperation to achieve dual, financial and social objectives: it is forgivable that you think”? Watch this video how cooperative principles and the global cooperative movement began: 4. Autonomy and independence. Co-ops are owned by members, not shareholders, so each member is the boss.
This means that if the cooperative enters into an agreement with other organisations, it is done on the basis of conditions guaranteeing democratic control of the member and retaining the autonomy of cooperation. Co-operatives are self-help organizations that are controlled by their members. When they enter into agreements with other organizations, including governments, or draw external capital, they do so on terms that guarantee democratic control of their members and maintain their autonomy for cooperation. Co-operatives around the world share the same seven principles as those defined by the International Co-operative Alliance (ICA). These principles are guidelines by which co-ops put their values into practice. Given that companies that are not only motivated by values share these internationally agreed principles and work together to build a better world through cooperation: adherence to principles is generally voluntary, but certain principles determine the legislation with which cooperatives work. For example, democratic control of members is an imperative quality of definition of cooperatives required by the Cooperative Associations Act in .C. Click on the image to find out how to make the seven principles work for your organization! Give members an agreed set of rights and responsibilities, usually as a member job description or affiliation agreement. In 1995, the ICA adopted the revised Declaration on Co-operative Identity, which contains the definition of a co-operative, the values of cooperatives and the seven principles of cooperation described below. They can also consult the guidelines on the principles and values of cooperatives, which provide detailed guidance and advice on the practical application of principles to cooperative enterprises. The second part of the principle deals with how members are compensated for funds invested in a co-operative and how surpluses should be used. Unlike for-profit businesses, cooperatives are a form of social entrepreneurship.
Before that, there are at least three objectives for which surplus funds can be used or distributed by a co-op. [Citation required] Cooperative principles are guidelines by which co-ops put their values into practice.