A co-operative, defined concisely by the Canadian Co-operative Association, is an organization owned by the members who use its services.  There are many different kinds of co-operatives (or co-ops), from agricultural co-ops to community co-ops, from consumer co-ops to retail co-ops.  A co-op is a successful and innovative alternative to the standard business structure.  A co-op, by following the principles and guidelines mandated,  actively builds an engaging and democratic form of collective ownership and responsibility.

Ever since we first opened in 1983, The Big Carrot has operated as a worker-owned co-operative.   To understand more clearly why we are so proud of this business model, you must be familiar with the 'Seven Principles', which is the essence of all co-ops around the world.

How do co-ops differ from other businesses?

This information is excerpted from the Canadian Co-operative Association's web page about co-ops.

Co-operatives and credit unions are driven by both economic and social concerns. They are community-based organizations that care not only about the bottom lines of their businesses, but about the needs of their members and the quality of life in their communities. Co-operatives and credit unions differ from other businesses in three key ways:

A Different Purpose: The primary purpose of co-operatives and credit unions is to meet the common needs of their members, whereas the primary purpose of most investor-owned businesses is to maximize profit for shareholders.

A Different Control Structure: Co-operatives and credit unions use the one-member/one-vote system, not the one-vote-per-share system used by most businesses. This helps the co-operative or credit union serve the common need rather than the individual need, and is a way to ensure that people, not capital, control the organization.

A Different Allocation of Profit: Co-operatives and credit unions share profits among their member-owners on the basis of how much they use the co-op, not on how many shares they hold. Co-operatives and credit unions also tend to invest their profits in improving service to members and promoting the well-being of their communities.
Values and Principles of A co-operative
This information was adopted from the Ontario Co-operative Association's website.

THE STATEMENT ON THE CO-OPERATIVE IDENTITY

The Statement on Co-operative Identity was adopted at the 1995 General Assembly of the International Co-operative Alliance (ICA), held in Manchester on the occasion of the Alliance's Centenary. The Statement was the product of a lengthy process of consultation involving thousands of co-operatives around the world.

The International Co-operative Alliance:
Statement on the Co-operative Identity

DEFINITION

A co-operative is 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.

VALUES

Co-operatives are based on the values of self-help, self-responsibility, democracy, equality, equity, and solidarity. In the tradition of their founders, co-operative members believe in the ethical values of honesty, openness, social responsibility, and caring for others.

PRINCIPLES

The co-operative principles are guidelines by which co-operatives put their values into practice.

1st PRINCIPLE: VOLUNTARY AND OPEN MEMBERSHIP
Co-operatives are voluntary organizations, 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.

2nd PRINCIPLE: DEMOCRATIC MEMBER CONTROL
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 organized in a democratic manner.

3rd PRINCIPLE: MEMBER ECONOMIC PARTICIPATION
Members contribute equitably to, and democratically control, the capital of their co-operative. At least part of that capital is usually the common property of the co-operative. They usually receive limited compensation, if any, on capital subscribed as a condition of membership. Members allocate surpluses for any or all of the following purposes: developing the co-operative, possibly by setting up reserves, part of which at least would be indivisible; benefiting members in proportion to their transactions with the co-operative; and supporting other activities approved by the membership.

4th PRINCIPLE: AUTONOMY AND INDEPENDENCE
Co-operatives are autonomous, self-help organizations controlled by their members. If they enter into agreements with other organizations, including governments, or raise capital from external sources, they do so on terms that ensure democratic control by their members and maintain their co-operative autonomy.

5th PRINCIPLE: EDUCATION, TRAINING AND INFORMATION
Co-operatives provide education and training for their members, elected representatives, managers, and employees so they can contribute effectively to the development of their co-operatives. They inform the general public -- particularly young people and opinion leaders -- about the nature and benefits of co-operation.

6th PRINCIPLE: CO-OPERATION AMONG CO-OPERATIVES
Co-operatives serve their members most effectively and strengthen the co-operative movement by working together through local, national, regional, and international structures.

7th PRINCIPLE: CONCERN FOR COMMUNITY
While focusing on member needs, co-operatives work for the sustainable development of their communities through policies accepted by their members.

Adopted in Manchester (UK) 23 September 1995