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Cooperative Principles

What makes co-ops different

Cooperative Principles

Cooperatives around the world operate according to a core set of principles. These principles, along with the cooperative purpose of improving quality of life for their members, make electric cooperatives different from other electric utilities.

Seven Co-op Principles

  • Voluntary and Open Membership
Cooperatives are voluntary organizations, open to all people able to use its services and willing to accept the responsibilities of membership, without gender, social, racial, political or religious discrimination.
  • Democratic Leadership
Cooperatives are democratic organizations controlled by their members—those who buy the goods or use the services of the cooperative—who vote for the board of directors that represent their interests.
  • Member's Economic Participation

Members contribute equally to, and democratically control, the capital of the cooperative. This benefits members in proportion to the business they conduct with the cooperative rather than on the capital invested.

  • Autonomy and Independence

Cooperatives are autonomous, self-help organizations controlled by their members. If the co-op enters into agreements with other organizations or raises capital from external sources, it is done so based on terms that ensure democratic control by the members and maintains the cooperative’s autonomy.

  • Education, Training, and Information
Cooperatives provide education and training for members, elected representatives, managers and employees so they can contribute effectively to the development of their cooperative. Members also inform the general public about the nature and benefits of cooperatives.
  • Cooperation Amount Cooperatives
Cooperatives serve their members most effectively and strengthen the cooperative movement by working together through local, national, regional and international structures.
  • Concern for Community
While focusing on member needs, cooperatives work for the sustainable development of communities through policies and programs accepted by the members.
EMPOWERING OUR COMMUNITIES

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