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The Seven Cooperative Principles

 1st Principle:  Voluntary and Open Membership

Cooperatives 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.

 2nd Principle:  Democratic Member Control

Cooperatives are democratic organizations controlled by their members, who actively participate in setting policies and making decisions.  The elected representatives are accountable to the membership.  In primary cooperatives, members have equal voting rights (one member, one vote) and cooperatives at other levels are organized in a democratic manner. 

 3rd Principle:  Members’ Economic Participation

Members contribute equitably  to, and democratically control, the capital of their cooperative.  At least part of that capital is usually the common property of the cooperative.  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 the cooperative, possibly by setting up reserves, part of which at least would be indivisible
  • Benefiting members in proportion to their transactions with the cooperative
  • Supporting other activities approved by the membership

 4th Principle:  Autonomy and Independence

Cooperatives 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 cooperative autonomy. 

5th Principle:  Education, Training, and Information

Cooperatives provide education and training for their members, elected representatives, managers, and employees so they can contribute effectively to the development of their cooperatives.  They inform the general public – particularly young people and opinion leaders – about the nature and benefits of cooperation. 

 6th Principle:  Cooperation Among Cooperatives

Cooperatives serve their members most effectively and strengthen the cooperative movement by working together through local, national, regional and international structures. 

 7th Principle:  Concern for Community

While focusing on member needs, cooperatives work for the sustainable development of their communities through policies accepted by their members.


Purpose drives everything America's electric cooperatives do, and this video shows how it's part of the cooperative DNA.



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