Maintain democratic member control Co-operatives are democratic organizations controlled by their members, who actively participate in setting policies and making decisions. Successful coops have well-defined decision-making processes and structures that are agreed upon by their members. It is important that members decide on the objectives for the Co-operative (see Step 5: Setting Objectives in The Manual).
Ensure economic participation Members contribute equitably to, and democratically control, the capital of their co-operative. Such a personal investment helps build a sense of collective ownership, responsibility and benefit. At least part of that capital is usually the common property of the co-operative. Members usually receive limited compensation, if any, on capital subscribed as a condition of membership. Surpluses can be reinvested in the co-operative or dispersed to members.
Maintain skilled management As with almost any form of enterprise, a co-operative’s success highly depends on skilled management.
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Keeps economic benefits within a community With co-operatives, profit is not diverted to outside investors. Instead, it stays in the community through employee wages, capital investment in the co-operative and other investment in the community. Promotes active democracy Co-operative members develop the values and skills needed to be active in democratic life through the processes of collective decision-making. Builds open markets Co-operatives spread economic power and encourage competition among enterprises. They provide market leverage to small producers marginalized by powerful cartels or sole-source companies. Improves the larger community from which co-operatives draw their membership Unlike more traditional enterprises, co-operatives tend to be more deeply concerned about the community from which they draw their members, and, as such, tend to be more active in the community. In fact, many co-operatives are developed simply to provide social necessities, such
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