Co-op Basics: The 7 Cooperative Principles
Posted on February 27th, 2023
Many businesses use the word “member” to describe their customers. At First Electric Cooperative, membership really does mean something more than just the right to buy electricity. We are founded on seven cooperative principles that give us guidance and strategic direction.
As a co-op member, you’re not just another customer. You are an owner, which gives you many benefits, including:
VOLUNTARY AND OPEN MEMBERSHIP
Cooperatives are voluntary organizations, open to all persons able to use their services and willing to accept the responsibilities of membership, without gender, social, racial, political or religious discrimination.
DEMOCRATIC MEMBER CONTROL
Cooperatives are democratic organizations controlled by their members, who actively participate in setting their policies and making decisions. Men and women serving as elected representatives are accountable to the membership. In primary cooperatives, members have equal voting rights – one member, one vote – and cooperatives at other levels are organized in a democratic manner.
MEMBER ECONOMIC PARTICIPATION
Members contribute equally to, and democratically control, the capital of their cooperative. At least part of that capital is usually the common property of the cooperative. They usually receive limited compensation, if any, on capital subscribed as a condition of membership. Members allocate surpluses for any or all of the following purposes: developing the cooperative, possibly by setting up reserves, part of which at least would be indivisible; benefiting members in proportion to their transactions with the cooperative; and supporting other activities approved by the membership.
AUTONOMY AND INDEPENDENCE
Cooperatives are autonomous, self-help organizations controlled by their members. If they enter into agreements with other organizations, including governments, or raise capital from external sources, they do so on terms that ensure democratic control by their members and maintain their cooperative autonomy.
EDUCATION, TRAINING AND INFORMATION
Cooperatives provide education and training for their members, elected representatives, managers and employees so they can contribute effectively to the development of their cooperatives. They inform the general public – particularly young people and opinion leaders – about the nature and benefits of cooperation.
COOPERATION AMONG COOPERATIVES
Cooperatives serve their members most effectively and strengthen the co-operative movement by working together through local, national, regional and international structures.
CONCERN FOR COMMUNITY
While focusing on member needs, cooperatives work for the sustainable development of their communities through policies accepted by their members.
First Electric is a member-owned cooperative that strives to give you the best value of any utility. To us, you are not just a customer. You are a member, and without you, we would not exist.
PHOTO: Don Crabbe, President and CEO of First Electric Cooperative, was recognized for his service as Chairman of the Board for Arkansas Electric Cooperative, Inc. (AECI) by Buddy Hasten, President and CEO of Arkansas Electric Cooperative Corporation and AECI.