ADDITIONAL NOTES their members.

If they enter into agreements with

other organizations, including government, or raise
COOP PRINCIPLES capital from external sources, they shall do so on
terms that ensure democratic control of their
1. Voluntary and Open Membership – Cooperatives are
voluntary organizations, open to all persons able to members and maintain their cooperative autonomy.
5. Education, Training and Information – Cooperatives
use their services and willing to accept the
shall provide education and training for their
responsibilities of membership, without gender,
members, elected and appointed representatives,
social, racial, cultural, political or religious
discrimination. managers, and employees, so that they can
contribute e ectively and e iciently to the
2. Democrative Member Control – Cooperatives are
development of their cooperatives.
democratic organizations that are controlled by their
members who actively participate in setting their 6. Cooperation Among Cooperatives – Cooperatives
serve their members most e ectively and strengthen
policies and making decisions.
the cooperative movement by working together
3. Member Economic Participation – Members
through local, national, regional and international
contribute equitably to, and democratically control,
the capital of their cooperatives. At least part of that structures.
7. Concern for Community – Cooperatives work for the
capital is the common property of the cooperative.
sustainable development of their communities
a. They shall receive limited compensation or
through policies approved by their members.
limited interest
b. Members allocate surpluses for any or all of the PURPOSES OF COOP
following purposes:
I. Developing the cooperative by setting up 1. To encourage thrift and savings mobilization among
reserves, part of which should at least be the members;
indivisible.
2. To generate funds and extend credit to the members
II. Benefitting members in proportion to their
for productive and provident purposes;
patronage of the cooperative’s business
III. Supporting other activities approved by the 3. To encourage among members systematic
membership production and marketing;
4. Autonomy and Independence – Cooperatives are
autonomous, self-help organizations controlled by
4. To provide goods and services and other requirements OBJECTIVES AND GOALS OF A COOP
to the members;
a. Provide goods and services to its members to enable
5. To develop expertise and skills among its members; them to attain increased income, savings,
investments, productivity, and purchasing power, and
6. To acquire lands and provide housing benefits for the promote among themselves equitable distribution of
members; net surplus through maximum utilization of
7. To insure against losses of the members; economies of scale, cost-sharing and risk-sharing;
b. Provide optimum social and economic benefits to its
8. To promote and advance the economic, social and members;
educational status of the members; c. Teach them e icient ways of doing things in a
cooperative manner;
9. To establish, own, lease or operate cooperative d. Propagate cooperative practices and new ideas in
banks, cooperative wholesale and retail complexes, business and management;
insurance and agricultural/industrial processing e. Allow the lower income and less privileged groups to
enterprises, and public markets; increase their ownership in the wealth of the nation;
10. To coordinate and facilitate the activities of and
cooperatives; f. Cooperate with the government, other cooperatives
and people-oriented organizations to further the
11. To advocate for the cause of the cooperative attainment of any of the foregoing objectives.
movements;

12. To ensure the viability of cooperatives through the

utilization of new technologies;

13. To encourage and promote self-help or self-

employment as an engine for economic growth and
poverty alleviation; and

14. To undertake any and all other activities for the

effective and efficient implementation of the provisions of
this Code.