The 7 Co-operative Principles

Guided by the 7 Co-operative Principles  , credit unions are unique in how they conduct business and serve their members. Canadian credit unions are affiliated with a respected, worldwide co-operative
movement, and have a long history of reflecting their co-operative values in building stronger communities, locally and abroad.



The following seven internationally accepted Co-operative Principles help shape credit union business decisions and governance, setting them apart from other financial institutions.


1. Voluntary and Open Membership 
Co-operatives 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.


2Democratic Member Control 
Co-operatives 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 co-operatives members have equal voting rights (one member, one vote) and co-operatives at other levels are also organized in a democratic manner.


3. Member Economic Participation 
Members contribute equitably to, and democratically control, the capital of their co-operative. 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. Members allocate surpluses for any or all of the following purposes. developing their co-operative, possibly by setting up reserves, part of which at least would be indivisible; benefiting members in proportion to their transactions with the co-operative; and supporting other activities approved by the membership.


4Autonomy and Independence 
Co-operatives are autonomous, self-help organizations controlled by their members. If they enter to 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 co-operative autonomy.


5. Education, Training and Information 
Co-operatives provide education and training for their members, elected representatives, managers, and employees so they can contribute effectively to the development of their co-operatives. They inform the general public - particularly young people and opinion leaders - about the nature and benefits of co-operation.


6Co-operation among Co-operatives 
Co-operatives serve their members most effectively and strengthen the co-operative movement by working together through local, national, regional and international structures.


7. Concern for Community 
Co-operatives work for the sustainable development of their communities through policies approved by their members.


Source of Seven Co-operative Principles:

International Co-operative Alliance, the Canadian Credit Union Association