Difference between internal and external governance.

The internal governance mechanisms primarily focus on boards of directors, ownership and
control, and managerial incentive mechanisms, whereas the external governance mechanisms
cover issues related to the external market and laws and regulations.
Standards

UN Guidelines (2001) and ILO Recommendation No. 193 (2002).

The ICA Statement, the UN Guidelines and ILO Recommendation No.193 10, containing the
cooperative values and principles
 Raising public awareness on cooperatives through evidence based advocacy and
sensitization to cooperative values and principles;

 Ensuring the competitiveness of cooperatives by developing tailored tools to cooperative

stakeholders including management training, audit manuals and assistance programs.

 Promoting the Inclusion of teaching of cooperative principles and practices at all levels of
the national education and training systems; and,

 Providing advice on cooperative policy and cooperative law, including participatory

policy and law making and the impact on cooperatives of taxation policies, labor law,
accounting standards, and competition law among others.

7 international principles
 Voluntary and open membership
 Democratic member control
 Member economic participation
 Autonomy and independence
 Education, training and information
 Cooperation among cooperatives
 Concern for the community

The seven principles used by the International Cooperative Alliance today are generally accepted
by cooperatives worldwide. Cooperatives are also based on the values of self-help, self-
responsibility, democracy, equality, equity, and solidarity.