Unit 2
COOPERATIVE
CREDIT SYSTEM IN
INDIA
PRINCIPLES OF CO-OPERATION
The International Co-
operative Alliance
The International Co-operative
Alliance is the global steward of
the Statement on the Cooperative
Identity –
The Values and Principles of the
cooperative movement.
Revised Statement on
Cooperative Identity
In 1995, the ICA adopted the revised Statement on the
Cooperative Identity which contains –
The definition of a cooperative
The values of cooperatives, and
The seven cooperative principles
The Guidance Notes on the Cooperative Principles and Values
give the detailed guidance and advice on the practical
application of the Principles to the cooperative enterprises.
Definition of the Co-
operative Society
The Statement on the Cooperative Identity
states that a cooperative 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.”
Cooperative values
Cooperatives are based on the values of
Self-help,
Self-responsibility,
Democracy,
Equality,
Equity, and
solidarity.
In the tradition of their founders, cooperative members
believe in the ethical values of honesty, openness, social
responsibility and caring for others.
Cooperative Principles
The cooperative principles are guidelines by which
cooperatives put their values into practice.
1. Voluntary and Open Membership
Cooperatives are voluntary organisations, open to all
persons able to use their services and willing to accept
the responsibilities of membership, without gender,
social, racial, political or religious discrimination.
2. Democratic Member
Control
Cooperatives are democratic organisations controlled by their members, who actively participate in
setting their policies and making decisions. Men and women serving as elected representatives are
accountable to the membership. In primary cooperatives members have equal voting rights (one
member, one vote) and cooperatives at other levels are also organised in a democratic manner.
3. Member Economic Participation
Members contribute equitably to, and democratically 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 of 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 approved by the
membership.
4. Autonomy and
Independence
Cooperatives are autonomous, self-help organisations controlled by their members. If they enter
into agreements with other organisations, including governments, or raise capital from external
sources, they do so on terms that ensure democratic control by their members and maintain
their cooperative autonomy.
5. 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 co-operatives. They
inform the general public - particularly young people and opinion leaders - about the nature and
benefits of co-operation.
6. Cooperation among
Cooperatives
Cooperatives serve their members most effectively and strengthen the cooperative movement by
working together through local, national, regional and international structures.
7. Concern for Community
Cooperatives work for the sustainable development of their communities through policies approved
by their members.
Guidance Notes on the
Cooperative Principles
In 2016, the ICA’s Principles Committee released the Guidance Notes on the Cooperative Principles,
giving detailed guidance and advice on the practical application of the Principles to cooperative
enterprise.
These Guidance Notes aim to state our understanding of the application of the Principles in
contemporary terms for the 21st century.
Cooperative Branding
2013 saw the launch of the global Cooperative Marque.
The objective is to create a new image that will become the
new global cooperative visual identity, used to provide a
'promotional umbrella' and 'unity of purpose' for the global
cooperative movement.
