A cooperative is a type of organization that is owned and controlled by its members. It operates for the benefit of its members and the community, rather than for the profit of outside shareholders. Cooperatives can provide a wide range of services, such as banking, agriculture, housing, and retail. They are guided by seven principles that set them apart from other types of businesses.

Membership in a cooperative is open to all people who can reasonably use its services and stand willing to accept the responsibilities of membership, regardless of race, religion, gender, or economic circumstances. This means that anyone who meets the requirements can become a member of a cooperative and have a say in how it is run.

Cooperatives are democratic organizations controlled by their members, who actively participate in setting policies and making decisions. Representatives, such as directors or trustees, are elected from among the membership and are accountable to them. In primary cooperatives, members have equal voting rights, meaning that each member has one vote regardless of their level of investment in the cooperative.

Members contribute equitably to, and democratically control, the capital of their cooperative. This means that members have a say in how the cooperative's funds are used and distributed. At least part of the capital remains the common property of the cooperative, and members can allocate surpluses for various purposes, such as developing the cooperative, setting up reserves, or benefiting members in proportion to their transactions with the cooperative.

Cooperatives are autonomous, self-help organizations controlled by their members. This means that they make their own decisions and are not controlled by outside shareholders or investors. If they enter into agreements with other organizations or raise capital from external sources, they do so on terms that ensure democratic control and maintain their unique identity.

Education and training for members, elected representatives, CEOs, and employees help them effectively contribute to the development of their cooperatives. This means that members and employees are provided with the necessary knowledge and skills to participate in the cooperative's decision-making processes. Additionally, communication about the nature and benefits of cooperatives helps to increase understanding and support for the cooperative model.

By working together through local, national, regional, and international structures, cooperatives improve services, bolster local economies, and deal more effectively with social and community needs. This means that cooperatives can collaborate and support each other to achieve common goals and benefit their communities.

Cooperatives work for the sustainable development of their communities through policies supported by the membership. This means that cooperatives prioritize the well-being of their communities and strive to make a positive impact through their actions and decisions.

Cooperatives are unique organizations that prioritize the needs and interests of their members and communities. By following these seven principles, cooperatives can create a more equitable and sustainable economy for all.