Co-op 101 · A Guide for Everyone
What is a co-operative
and why does it matter?
Did you know that more than one in seven people worldwide are members of a co-operative. Yet the model is rarely explained in mainstream media. Here’s an introduction to how co-ops work and how they build stronger communities.
The Definition
A business owned by the people it serves
A co-operative is an autonomous association of people who unite voluntarily to meet common economic, social, and cultural needs through a jointly-owned and democratically-controlled enterprise. In plain terms: it’s a business that belongs to its members — the customers, workers, or producers who use it — rather than to outside investors.
Because members are also owners, co-ops measure success differently. They weigh economic results alongside their social and environmental impact. Some call this a “triple-bottom-line” (People, Planet, Profit, not necessarily in that order) approach that puts people and community first while still running a sustainable business.
“One member, one vote.”
Every member has an equal say in how the co-op is run, regardless of how much money they’ve put in. That single rule is what makes a co-operative fundamentally different from an ordinary company, where control follows capital.
The Values
Built on shared values
Around the world, co-operatives are guided by the same set of values. They shape the decisions made in every co-op, from your local credit union to the farm co-op down the road.
Want to learn more about how these values were developed and promoted?
Read the International Co-operative Alliance’s Statement on the Cooperative Identity.
- Self-help
- Self-responsibility
- Democracy
- Equality
- Equity
- Solidarity
The Rulebook
The seven co-operative principles
First set out by the Rochdale Pioneers in 1844 and maintained today by the International Co-operative Alliance, these seven principles put co-operative values into practice.
1
Voluntary & Open Membership
Co-ops are open to everyone able to use their services and willing to accept the responsibilities of membership — without gender, social, racial, political, or religious discrimination.
2
Democratic Member Control
Members control the co-op democratically. In a primary co-op every member has one equal vote, no matter how much they’ve invested — one member, one vote.
3
Member Economic Participation
Members contribute equitably to, and democratically control, the co-op’s capital. Surpluses are reinvested, set aside as reserves, or returned to members in proportion to their use.
4
Autonomy & Independence
Co-ops are self-help organizations controlled by their members. Any agreement with outside partners is made on terms that keep members in democratic control.
5
Education, Training & Information
Co-ops educate their members, elected representatives, and staff so they can contribute effectively — and they inform the public about the nature and benefits of co-operation.
6
Co-operation Among Co-operatives
Co-ops serve their members best and strengthen the movement by working together through local, national, regional, and international structures.
7
Concern for Community
While focused on member needs, co-ops work for the sustainable development of their communities through policies approved by their members.
The story of the Rochdale Pioneers is one of people doing great things, together. This is a wonderful introduction to their history.
The Family Tree
Many kinds, one idea
Co-ops take different shapes depending on who owns them, however all of them share the same democratic control and shared values.
Consumer Co-ops
Owned by the people who buy the goods or services. These are grocery stores, credit unions, and retail co-ops that return value to members instead of outside shareholders.
Producer Co-ops
Owned by producers (farmers, artisans, or fishers) who pool resources to process, market, and sell their goods and command a fairer price together.
Worker Co-ops
Owned, operated and governed by the employees themselves. The people who do the work share in the decisions and the profits, one worker, one vote.
Multi-Stakeholder Co-ops
Bring together several groups (usually workers, consumers, and community members) under one democratic roof to serve a shared purpose, such as home care or local food production.
The Bigger Picture
Co-ops and the social economy
Co-operatives are a cornerstone of the social economy. The social economy includes the wide world of enterprises and organizations that pursue social goals rather than private profit, from non-profits and charities to credit unions and mutuals. Together they prove that a fairer, more democratic economy isn’t just an ideal; it’s already here and working.
When you bank at a credit union, shop at a member-owned grocery, or join a housing co-op, you keep decisions and dollars rooted in your community. Surpluses are reinvested locally rather than extracted, and ownership can’t be bought or shipped away.
Co-ops create jobs at nearly five times the rate of the overall economy and, in BC, roughly twice as many co-ops survive past their first five years compared with other new businesses.
Read more in the BC Co-op Association’s knowledge base.
The co-operative movement, by the numbers
1 in 7
people worldwide are co-op members
1Billion+
co-op members worldwide
$2.79Trillion
The largest 300 cooperatives and mutuals report a total turnover of 2.79 trillion USD
1844
the Rochdale Pioneers set the principles
Sources listed below — see Credits & further reading.
With Thanks
Credits & further reading
The facts and definitions on this page are drawn from the organizations below. We’re grateful for their work — visit them to learn more.
International Co-operative Alliance
Co-operative identity, values & the seven principles
ica.coop/en/cooperatives/cooperative-identity
The co-op business model & knowledge centre
bcca.coop/knowledge-centre/co-op-business-model/
Ready to hear the model in action?
Every week, Each For All profiles real co-ops and the people building them. Put a face to the principles.
