Cooperatives: how do they work?
What are Cooperatives?
Cooperatives are businesses owned by "member-owners". Co-ops are democratically controlled by their member-owners, and unlike a traditional business each member gets a voice in how the business is run. Services or goods provided by the co-op benefit and serve the member owners. Contrary to popular belief coops are not non-profits, and do aim earn profits. Earnings generated by the cooperative benefit the member-owners.
The way co-ops operate is much closer to a traditional business than a non-profit. However, the ways in which co-ops differ from traditional businesses can be seen in the 7 Cooperative Principles. These principles are:
- Voluntary and Open Membership
- Democratic Member Control
- Member's Economic Participation
- Autonomy and Independence
- Education, Training, and Information
- Cooperation Among Cooperatives
- Concern for Community
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