What is a co-operative (co-op)?
A co-operative is a business that is owned and run by and for members, using democratic processes to give all members a say. Co-ops are generally value-driven and concerned with member livelihoods but not necessarily with profits.The
Why develop a co-operative?
Those involved in co-ops generally recognise the key values and principles agreed in the international Statement on the Co-operative Identity, Values, and Principles.
Core values:
- self-help and self-responsibility
- democracy and equality
- equity and solidarity
- honesty and openness
- social responsibility and caring for others
Core principles:
- Voluntary and open membership
- Democratic member control
- Member economic participation
- Autonomy and independence
- Education, training and information
- Cooperation among co-operatives
- Concern for community
If participatory democracy and collective action appeal to you, then you might find that co-operatives are a fitting way for you to pursue your economic goals.
How does a co-operative
work?
There are many types of co-operatives:
- worker co-operatives
- buyer cooperatives, such as consumer co-operatives for those purchasing end-user goods and services or cooperatives for organisations (business, councils) seeking to improve their collective purchasing power
- producer or manufacturer co-operatives
- hybrids of the above
In general, all co-operative members have roles that combine financial and strategic governance with direct participation, for example as a grower, manufacturer, worker, or producer.
Where can I go to learn more?
- The International Co-operative Alliance for a comprehensive introduction to formal co-operatives from the primary worldwide umbrella organisation for co-operative businesses, including these useful resources:
- - Statement on the Co-operative Identity and Guidance Notes on the Co-operative Principles
- - Factsheet on the Differences between Co-operatives, Corporations and Non-Profit Organisations
- - An extensive online library
- Mondragón Corporation for an example initiated in the mid-twentieth century as a network of local co-operatives oriented toward social justice and community well-being, an example that still proves inspiring to many even though the model has changed with international expansion
- The LE Shop, including resources such as Humanizing the Economy by John Restakis and Providing Clean Energy and Energy Access through Cooperatives published by the International Labour Office
- Contact the LE team for more support