Seven guiding principles of a cooperative:

Cooperatives the world over adhere to the spirit of seven guiding principles
outlined by the International Cooperative Alliance. These principles,
updated in 1995, during a meeting in Manchester, England, are:

1. Voluntary and Open Membership

Cooperatives are voluntary organizations, 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 organizations controlled by their members,
who actively participate in setting policies and making decisions.
The 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 organized in a democratic manner.

3. Members’ 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
the 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 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 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
cooperatives. They inform the general public, particularly young people and opinion leaders,
about the nature and benefits of cooperation.

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

While focusing on member needs, cooperatives work for the sustainable development of
their communities through policies accepted by their members.

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Association of Missouri Electric Cooperatives
2722 East McCarty Street, P.O. Box 1645
Jefferson City, Missouri 65102
(573) 635-6857

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