What do cooperatives and Circles have in common?
They’re both about people coming together to create something bigger than themselves.
Circles powered by StepLadder might look modern, but the idea behind them is timeless: when we pool resources and support each other, we can achieve things we couldn’t on our own. Whether it’s reaching a financial goal or simply building trust and connection, Circles are a way of putting cooperation into action.
As we gather momentum during the International Year of Cooperatives, we’re taking a look in detail at the core principles of cooperatives - the guidelines that define how cooperatives operate and ensure they serve the best interests of their members and communities. These principles were established by the International Cooperative Alliance (ICA) and are widely recognized globally. Here's an overview:
1. Voluntary and Open Membership
Definition: Cooperatives are open to all individuals willing to accept the responsibilities of membership, without discrimination based on gender, social status, race, political affiliation, or religion.
Purpose: Ensures inclusivity and accessibility, promoting diversity within the cooperative.
2. Democratic Member Control
Definition: Cooperatives are democratic organizations controlled by their members, who actively participate in decision-making processes. Members typically have equal voting rights (one member, one vote).
Purpose: Promotes fairness and accountability, ensuring that decisions reflect the collective will of members.
3. Member Economic Participation
Definition: Members contribute equitably to, and democratically control, the capital of the cooperative. Profits are either reinvested in the cooperative or distributed to members in proportion to their use of the cooperative's services.
Purpose: Encourages shared responsibility and equitable benefit distribution.
4. Autonomy and Independence
Definition: Cooperatives are autonomous, self-help organizations controlled by their members. If they enter agreements with external entities (e.g., governments or investors), they do so while retaining democratic control.
Purpose: Protects the cooperative's independence and member-driven focus.
5. Education, Training, and Information
Definition: Cooperatives provide education and training for members, elected representatives, managers, and employees to contribute effectively to the cooperative\u2019s development. They also inform the public about the nature and benefits of cooperatives.
Purpose: Empowers members with the knowledge needed to participate fully and effectively in the cooperative.
6. Cooperation Among Cooperatives
Definition: Cooperatives work together through local, regional, national, and international structures to strengthen the cooperative movement.
Purpose: Enhances the collective impact of cooperatives and fosters mutual support across organizations.
7. Concern for Community
Definition: Cooperatives focus on the sustainable development of their communities through policies and activities approved by their members.
Purpose: Reinforces the cooperative\u2019s role in improving the social and economic well-being of the communities they serve.
These principles ensure that cooperatives prioritize their members' needs, operate ethically, and contribute positively to society. Circles, powered by StepLadder, exemplifies these principles by fostering financial inclusion, collaboration, and community growth.
