thumb|The original Toad Lane Store in [[Rochdale, United Kingdom]]

The Rochdale Principles are a set of ideals for the operation of cooperatives. 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.

Current ICA version of co-operative principles

The Rochdale Principles, according to the 1995 ICA revision, can be summarised as follows.

Voluntary and open membership

The first of the Rochdale Principles states that co-operative societies must have an open and 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."

Anti-discrimination

To discriminate socially is to make a distinction between people on the basis of class or category. Examples of social discrimination include racial, casteist, religious, sexual, sexual orientation, disability, and 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 – Some co-operatives are able to provide members with financial benefits.
  • Quality of life – 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 – Many people have in some way benefited from the work of a co-operative and volunteer to give back.
  • Altruism – Some volunteer for the benefit of others.
  • A sense of duty – Some see participation in community as a responsibility that comes with citizenship. In this case, they may not describe themselves as volunteers.
  • Career experience – 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."

  1. Open membership.
  2. Democratic control (one person, one vote).
  3. Distribution of surplus in proportion to trade.
  4. Payment of limited interest on capital.
  5. Political and religious neutrality.
  6. Cash trading (no credit extended).
  7. 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.

  1. Open, voluntary membership.
  2. Democratic governance.
  3. Limited return on equity.
  4. Surplus belongs to members.
  5. Education of members and public in cooperative principles.
  6. 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

  • The International Co-operative Alliance
  • Statement on the Co-operative Identity
  • Cooperative Principles Then and Now
  • Principles of the International Co-operative Alliance
  • A variant of the 1966 principles from Circle Pines Center