Sustainability Language

Governance, Ethics & Risk

Cooperative

An autonomous association of people who unite voluntarily to meet common economic, social and cultural needs through a jointly owned, democratically controlled enterprise.

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Definition

A cooperative is defined by the International Co-operative Alliance's 1995 Statement on the Cooperative Identity as an autonomous association of persons united voluntarily to meet their common economic, social and cultural needs and aspirations through a jointly owned and democratically controlled enterprise. The statement sets out seven principles, from voluntary and open membership and democratic member control to concern for community. The ICA estimates that at least 12 per cent of humanity participates in one of the world's three million cooperatives.

References

Overview

What it means

An ownership model in which users or workers, not outside investors, control the enterprise and share its surplus.

How it is used

Cooperatives are significant in agriculture and food supply chains, finance (credit unions), housing and renewable energy; the Rochdale pioneers founded the modern movement in 1844.

Why it matters

Cooperatives are a recognised vehicle for social sustainability, smallholder market power and community wealth, and feature in fair-trade and development programmes.

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