ROCHDALE, England–It’s International Credit Union Day, a good time for a reminder on the 7 Cooperative Principles, the foundational operating principles for cooperatives such as credit unions.
The principles were first set out in 1844 by the Rochdale Society of Equitable Pioneers in Rochdale, England, and have been updated on several occasions in the century and a half since they were first recorded. The 7 Cooperative Principles were adopted by the International Cooperative Alliance in 1995.
The 7 Cooperative Principles as they apply to credit unions are:
Voluntary Membership
Credit unions are voluntary, cooperative organizations, offering services to people willing to accept the responsibilities and benefits of membership, without gender, social, racial, political or religious discrimination.
Democratic Member Control
Cooperatives are democratic organizations owned and controlled by their members, one member one vote, with equal opportunity for participation in setting policies and making decisions.
Member Economic Participation
Members are the owners. As such they contribute to, and democratically control, the capital of the cooperative. This benefits members in proportion to the transactions with the cooperative rather than on the capital invested.
Autonomy and Independence
Cooperatives are autonomous, self-help organizations controlled by their members. If the cooperative 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 member and maintains the cooperative 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 the cooperative. Credit unions place particular importance on educational opportunities for their volunteer directors and financial education for their members.
Cooperation Among Cooperatives
Cooperatives serve their members most effectively and strengthen the cooperative movement by working together through local, state, regional, national, and international structures.
Concern for Community
While focusing on member needs, cooperatives work for the sustainable development of communities, including people of modest means, through policies developed and accepted by the members.
Note, many in credit unions are advocating for the addition of an 8th Cooperative Principal, “Diversity, Equity and Inclusion.”