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Principals of ODRA as a CO-OP

How does Odra meet the basic principles of a Co-Op

The International Co-operative Alliance, based in Geneva, is broadly recognized as the legitimate international home of national co-op federations, and is also where co-ops have, over time, debated and changed the accepted Co-op Principles, as well as engaging with key and highly contested debates about the variations on the classic co-op form that can be accepted within the recognized movement. The current state of play on these issues is captured below.

The International Co-operative Alliance
Statement on Co-op Identity adopted at the 1995 Congress and General Assembly

Definition of a Co-operative
A co-operative is an autonomous association of persons united voluntarily to meet their common economic, social, and cultural needs and aspirations through a jointly-owned and democratically controlled enterprise.

Values
Co-operatives are based on the values of self-help, self-responsibility, democracy, equality, equity, and solidarity. In the tradition of their founders, co-operative members believe in the ethical values of honesty, openness, social responsibility, and caring for others.

Principles
The co-operative principles are guidelines by which co-operatives put their values into practice.

1st Principle: Voluntary and Open Membership

Co-operatives are voluntary organisations, 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.

2nd Principle: Democratic Member Control

Co-operatives are democratic organisations 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 organised in a democratic manner.

3rd Principle: 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.

4th Principle: Autonomy and Independence

Co-operatives are autonomous, self-help organizations controlled by their members. If they enter into agreements with other organisations, 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.

5th Principle: 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-operations.

6th Principle: Co-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.

Concern for Community

Co-operatives work for the sustainable development of their communities through policies approved by their members.
This Statement on the Co-operative Identity was adopted at the 1995 Congress and General Assembly of the International Co-operative Alliance, held in Manchester to celebrate the Alliance’s Centenary. Recommended to the Congress by the ICA Board, the Statement was the product of a lengthy process of consultation involving thousands of co-operators around the world.
The principle of the indivisibility of co-op capital. Historically, the co-op principle was that the capital of a co-op was indivisible.

When a member left, even after a lifetime of employment, they could only take out the value of their initial share contribution, with nominal interest. This has been a factor contributing to the tendency for members of commercially-successful co-ops to vote to convert the enterprise to a conventional form of business, in order to access their portion of the capital growth in the business. Amongst other issues, this was part of the motivation for many of SA’s agricultural co-ops to vote to convert to limited liability companies in the late 1990’s.

South Africa’s Department of Trade and Industry (DTI) has increased support for co-operatives in the country by establishing a Co-operatives Development Agency and Tribunal.
The DTI has identified programmes and products to ensure that South Africans are supporting sustainable co-operatives that can play a meaningful role in the economic and social development of its members, for the good of their members.

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