The Cooperative (Rochdale) Principles

Co-ops are characterized by the Rochdale Principles named after the first successful co-op which was started in Rochdale, England in the 1840's.

This is a paraphrased version:

• Open Membership: A co-op does not discriminate. Anyone can join.
  
  
• Democratic Control: The co-op is owned and operated by its members. Each member gets one vote (unlike publicly-traded companies in which those who buy the most shares get the most votes).
  
  
• Limited Return on Capital: A co-op is not intended to be a money-making enterprise for its members. Members may thus be paid only a "limited" amount of interest on any money they invest. (Most co-ops have a very modest investment requirement. My local credit union requires only a $5 lifetime investment.)
  
  
• Surplus Belongs to Members: Since the members are the owners, they receive any profit the co-op makes. In many co-ops the profits are reinvested into the business rather than being returned to the members.
  
  
• Honest Business Practices: Cooperatives deal openly, honestly, and honorably with their members and the general public.
  
  
• Ultimate aim is to advance the Common Good:The ultimate aim of all cooperatives should be to aid in the participatory definition and the advancement of the common good.
  
  
• Education: Co-ops are expected to educate their members, officers, and employees and of the general public in the principles and techniques of cooperation, both economic and democratic.
  
  
• Cooperation among Cooperatives: Co-ops should actively cooperate in every practical way with other cooperatives.