Co-operative Principles
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Open membership - Membership in most is open to all who
have need of its services.
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Democratic control - Co-operatives are controlled by those
whom they serve. The "One member - one vote" rule prevails. Control is from the
bottom up, rather from the top down.
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Limited interest paid on capital - Limiting the interest
or dividend paid on capital stock eliminates speculation in co-operative shares which removes
the tendency of investors to influence policy.
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Patronage refunds on purchases - This is one of the distinctive
characteristics of co - operatives. Co- operatives operate on a cost basis, returning all
charges over and above the cost of doing business to patrons in proportion to their purchases
from the co - operative. The refund may be in cash, in patronage refund stock, or part cash
and part stock.
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Neutrality in political or religious issues - This neutrality
is observed on all matters that are not vital to the preservation of the co-operative way
of doing business.
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Constant program of education - Co-operatives should carry
on a program of education to keep their members informed about co-operative operations so
they can make intelligent decisions concerning the business they own.
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Continuous expansion - Co-operatives must, if they are
to fulfill their obligation to their patron-owners, help keep abreast of current changes in
the business economy.
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