● Cooperative ● Cooperatives are businesses

controlled by their members.

owned and

Principles from ● They are based on the principles of self-help,

self-responsibility, democracy, equality, equity,
Worldwide and solidarity.

Cooperative ● These principles are outlined in the Statement

on the Cooperative Identity, which was adopted
Federations By: Gen Banzon
by the International Cooperative Alliance in
1995.

CASH TRADING
FELT NEED IN THE COMMUNITY
● Cooperatives should trade on a cash basis.
● Cooperatives should be formed to meet a felt
● This means that they should not sell goods or services
need in the community.
on credit.

● There are several reasons for this principle.
○ It helps to ensure that the cooperative has enough
funds to operate.
○ It helps to prevent the cooperative from becoming
overextended.
○ It helps to promote a sense of responsibility among
members.
● This means that the cooperative should provide
goods or services that are needed by the people
in the community.
● If the cooperative does not meet a felt need, it is
unlikely to be successful.
ADEQUATE VOLUME OF BUSINESS
● Cooperatives should have a sufficient volume of
business to be viable.
● This means that the cooperative should have
enough members and enough transactions to
generate enough income to cover its expenses.
● If the cooperative does not have a sufficient
volume of business, it is unlikely to be
successful.
Continuous Expansion
● Cooperatives should strive to expand their
operations.
● This can be done by opening new branches,
offering new products and services, or merging
with other cooperatives.
● Expansion can help the cooperative to grow and
become more successful.
Selling at Prevailing Market Price
● Cooperatives should sell their goods and services at
prevailing market prices.
● This means that they should not charge more or less
than their competitors.
● There are several reasons for this principle.
○ It helps to ensure that the cooperative is competitive.
○ It helps to prevent the cooperative from taking
advantage of its members.
○ It helps to promote a sense of fairness among
members.
Autonomy and Independence
● Cooperatives should be autonomous and
independent.
● This means that they should not be controlled
by any outside entity, such as the government
or a private company.
● Autonomy and independence are essential for
cooperatives to be able to operate effectively
and democratically.