The cooperative business model is centred on the user owned, user controlled, and user benefited framework. It is one of the oldest business models, with the first dating back to the Rochdale pioneers of England in 1844.
Today, cooperatives are defined as 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.
From small-scale to multi-million-dollar businesses across the globe, co-operatives employ more than 100 million people and have more than 800 million individual members.
Co-operatives are based on the values of self-help, self-responsibility, democracy, equality, and solidarity. In the tradition of their founders, co-operative members believe in the ethical values of honesty, openness, social responsibility and caring for others.
Cooperatives around the world generally operate according to the same core principles and values, adopted by the International Co-operative Alliance in 1995.
The 7 Cooperative Principles
Voluntary & Open Membership
Cooperatives are voluntary organisations open to persons willing to accept the responsibilities of membership. They don’t discriminate based on gender, social, racial, political or religious factors.
Democratic Member Control
Members control their business by deciding how it’s run and who leads it. Members have equal voting rights (one member, one vote).
Members’ Economic Participation
All co-op members invest in their cooperative. They contribute equitably to, and democratically control, the capital of their cooperative. The means people, not shareholders, benefit from a co-operatives profits.
Autonomy & Independence
When making business deals or raising money, co-ops never compromise their autonomy or democratic member control.
Education, Training and Information
Co-ops provide education, training and information so their members can contribute effectively to the success of their co-op.
Cooperation Among Cooperatives
Co-ops believe working together is the best strategy to empower their members and build a stronger co-op economy.
Concern for Community
Co-ops are community minded. While focusing on member needs, they contribute to the sustainable development of their communities by sourcing and investing locally.
There are many different cooperatives, check out this blog on the diverse range of cooperatives.