Editing Rochdale Principles

{{short description|Organizing guidelines for a co-op}}
{{Use dmy dates|date=April 2022}}
{{Multiple issues|
{{primary sources|date=April 2019}}
{{Notability|date=May 2022}}
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[[File:ToadLane2009.jpg|thumb|The original Toad Lane Store in [[Rochdale]], United Kingdom.]]
{{Corporate law|doctrines}}

The '''Rochdale Principles''' are a set of ideals for the operation of [[cooperative]]s. They were first set out in 1844 by the [[Rochdale Society of Equitable Pioneers]] in [[Rochdale]], England, and have formed the basis for the principles on which co-operatives around the world continue to operate. The implications of the Rochdale Principles are a focus of study in [[co-operative economics]]. The original Rochdale Principles were officially adopted by the [[International Cooperative Alliance]] (ICA) in 1937 as the Rochdale Principles of Co-operation. Updated versions of the principles were adopted by the ICA in 1966 as the Co-operative Principles and in 1995 as part of the [[Statement on the Co-operative Identity]].<ref name=icaprarchive2009>{{cite report |url=http://www.ica.coop/coop/principles-revisions.html |title=ICA Co-operative Principles |publisher=[[International Co-operative Alliance]] |archive-url=https://web.archive.org/web/20091029163330/http://www.ica.coop/coop/principles-revisions.html |archive-date=2009-10-29 |edition=1937, 1966, and 1995 revisions}}</ref>

== Current ICA version of co-operative principles ==
The Rochdale Principles, according to the 1995 ICA revision, can be summarised as follows.<ref name=icastatement1995>{{cite web |last1=ICA |title=Cooperative identity, values & principles |url=https://www.ica.coop/en/cooperatives/cooperative-identity/ |publisher=[[International Co-operative Alliance]] |access-date=13 November 2022 |date=1995}}</ref>

=== Voluntary and open membership ===
The first of the Rochdale Principles states that co-operative societies must have an open and [[wikt:voluntary|voluntary]] membership. According to the ICA's Statement on the Co-operative Identity, "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."<ref name="icastatement1995" /><ref name="ICAguidancenotes">{{cite web |last1=ICA |title=Guidance Notes to the Co-operative Principles |url=https://www.ica.coop/sites/default/files/2021-11/ICA%20Guidance%20Notes%20EN.pdf |publisher=[[International Co-operative Alliance]] |access-date=14 November 2022 |date=2015}}</ref>

==== Anti-discrimination ====
To discriminate [[socially]] is to make a distinction between [[people]] on the basis of [[Social class|class]] or [[Categorization|category]]. Examples of social discrimination include [[racism|racial]], [[Casteism|casteist]], [[Religious discrimination|religious]], [[Sexism|sexual]], [[sexual orientation]], [[Disability discrimination act|disability]], and [[Ethnic persecution|ethnic]] discrimination. To fulfill the first Rochdale Principle, a co-operative society should not prevent anyone willing to participate from doing so on any of these grounds. However, this does not prohibit the co-operative from setting reasonable and relevant ground rules for membership, such as residing in a specific geographic area or paying a membership fee to join, so long as all persons meeting such criteria are able to participate if they so choose.

==== Motivations and rewards ====
Given the voluntary nature of co-operatives, members need reasons to participate. Each person's motivations will be unique and will vary from one co-operative to another, but they will often be a combination of the following:
*Financial&nbsp;– Some co-operatives are able to provide members with financial benefits.
*Quality of life&nbsp;– Serving the community through a co-operative because doing service makes one's own life better is perhaps the most significant motivation for volunteering. Included here would be the benefits people get from being with other people, staying active, and above all having a sense of the value of ourselves in society that may not be as clear in other areas of life.
*Giving back&nbsp;– Many people have in some way benefited from the work of a co-operative and volunteer to give back.
*Altruism&nbsp;– Some volunteer for the benefit of others.
*A sense of duty&nbsp;– Some see participation in community as a responsibility that comes with citizenship. In this case, they may not describe themselves as volunteers.
*Career experience&nbsp;– Volunteering offers experiences that can add to career prospects.

=== Democratic member control ===
The second of the Rochdale Principles states that co-operative societies must have democratic member control. According to the ICA's Statement on the Co-operative Identity, "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 organised in a democratic manner."<ref name="icastatement1995" />

=== Member economic participation ===
Member economic participation is one of the defining features of co-operative societies, and constitutes the third Rochdale Principle in the ICA's Statement on the Co-operative Identity. According to the ICA, co-operatives are enterprises in which "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." This principle, in turn, can be broken down into a number of constituent parts.

==== Democratic control ====
The first part of this principle states that "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."<ref name="icastatement1995" /> This enshrines [[democracy|democratic control]] over the co-operative, and how its capital is used.

==== Limitations on member compensation and appropriate use of surpluses ====
The second part of the principle deals with how members are compensated for funds invested in a co-operative, and how surpluses should be used. Unlike for-profit [[corporations]], co-operatives are a form of [[social enterprise]]. Given this, there are at least three purposes for which surplus funds can be used, or distributed, by a co-operative.<ref name="icastatement1995" />
* "Members usually receive limited compensation, if any, on capital subscribed as a condition of membership."
* "Developing their co-operative, possibly by setting up reserves, part of which at least would be indivisible;" in other words, the surplus can be reinvested in the co-operative.
* "Benefiting members in proportion to their transactions with the co-operative;" for example, a [[consumers' co-operative]] may decide to pay [[dividend]]s based on purchases (or a 'divvi').
* "Supporting other activities approved by the membership."

=== Autonomy and independence ===
The fourth of the Rochdale Principles states that co-operative societies must be autonomous and independent. According to the ICA's Statement on the Co-operative Identity, "Co-operatives 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 co-operative autonomy."<ref name="icastatement1995" />

=== Education, training, and information ===
The fifth of the Rochdale Principles states that co-operative societies must provide education and training to their members and the public. According to the ICA's Statement on the Co-operative Identity, "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."<ref name="icastatement1995" />

=== Cooperation among cooperatives ===
The sixth of the Rochdale Principles states that co-operatives cooperate with each other. According to the ICA's Statement on the Co-operative Identity, "Co-operatives serve their members most effectively and strengthen the co-operative movement by working together through local, national, regional and international structures."<ref name="icastatement1995" />

=== Concern for community ===
The seventh of the Rochdale Principles states that co-operative societies must have concern for their communities. According to the ICA's Statement on the Co-operative Identity, "Co-operatives work for the sustainable development of their communities through policies approved by their members."<ref name="icastatement1995" />

== Previous versions ==

=== Original version (adopted 1937)<ref name="icaprarchive2009" /><ref>{{Citation |author=Special Committee |title=The Present Application of the Rochdale Principles of Co-operation (1937) |url=http://www.ica.coop/coop/1937-01.html |page=2 |archive-url=https://web.archive.org/web/20090411052803/http://www.ica.coop/coop/1937-01.html |url-status=dead |publisher=[[International Co-operative Alliance]] |archive-date=2009-04-11 |section=1. The Principles of Co-operation as practiced by the Rochdale Pioneers}}</ref> ===
# Open membership.
# Democratic control (one person, one vote).
# Distribution of surplus in proportion to [[trade]].
# Payment of limited interest on [[Ownership equity|capital]].
# Political and religious neutrality.
# Cash trading (no credit extended).
# Promotion of education.

=== ICA revision (1966) ===
At the 1963 Bournemouth Congress of the ICA, attendees appointed a second commission on the Rochdale principles, composed of one representative each from [[Great Britain]], [[Western Europe]], [[Eastern Europe]], [[United States]], and [[India]]. D.G. Karve, the representative from India, chaired the commission.<ref name="The Meaning of Rochdale">{{cite book |last1=Fairbairn |first1=Brett |title=The Meaning of Rochdale: the Rochdale pioneers and the co-operative principles |date=1994 |publisher=Centre for the Study of Co-operatives |location=Saskatoon, Saskatchewan |isbn=9780888803177 |page=32 |url=https://usaskstudies.coop/documents/occasional-papers/meaning-of-rochdale.pdf |access-date=13 November 2022}}</ref>
# Open, voluntary membership.
# Democratic governance.
# Limited return on [[Ownership equity|equity]].
# Surplus belongs to members.
# Education of members and public in cooperative principles.
# Cooperation between cooperatives.

== See also ==
* [[Rochdale College]] (a Canadian experiment in Rochdale principles)
* [[Rochdale Village, Queens]], a cooperative housing project in New York.
* [[York Center, Illinois]], a cooperative community in Illinois.

== References ==
{{Reflist|30em}}

== External links ==
* [http://www.ica.coop The International Co-operative Alliance]
* [http://www.ica.coop/en/whats-co-op/co-operative-identity-values-principles Statement on the Co-operative Identity]
* [http://www.grocer.coop/articles/co-op-principles-then-and-now-parts-1-and-2 Cooperative Principles Then and Now]
* [https://web.archive.org/web/20160126033707/http://www.uwcc.wisc.edu/icic/def-hist/gen-info/index.html Principles of the International Co-operative Alliance]
* [https://web.archive.org/web/20080724082900/http://www.circlepinescenter.org/rochdale.php A variant of the 1966 principles] from [[Circle Pines Center]]

{{Co-operatives |topics}}
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[[Category:Cooperative principles]]
[[Category:Cooperatives]]
[[Category:History of Rochdale]]
[[Category:1844 documents]]
[[Category:1966 documents]]
[[Category:1995 documents]]