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Principles of a Cooperative
A cooperative is a voluntary, contractual organization of
people having a mutual ownership interest in providing themselves a service on a
not-for-profit basis.
Consumer cooperative business, like Fayette Electric
Cooperative, are special because they are owned by the consumers they serve, and
because they are guided by a set of seven principles that reflect the best
interest of their member/owners.
1. Voluntary and Open Membership
Cooperatives 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.
2. Democratic Member Control
Cooperatives 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 cooperatives, members have equal voting rights - one
member, one vote - and cooperatives at other levels are organized in a
democratic manner.
3. Members' Economic Participation
Members contribute equally to, and democratically control,
the capital of their cooperative. At least part of that capital is usually the
common property of the cooperative. 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 cooperative,
possibly by setting up reserves, part of which at least would be indivisible;
benefiting members in proportion to their transactions with the cooperative; and
supporting other activities approved by the membership.
4. Autonomy and Independence
Cooperatives 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 cooperative autonomy.
5. Education, Training and Information
Cooperatives provide education and training for their
members, elected representatives, managers and employees so they can contribute
effectively to the development of their cooperatives. They inform the general
public - particularly young people and opinion leaders - about the nature and
benefits of cooperation.
6. Cooperation Among Cooperatives
Cooperatives serve their members most effectively and
strengthen the cooperative movement by working together through local, national,
regional and international structures.
7. Concern for Community
While focusing on member needs, cooperatives work for the
sustainable development of their communities through policies accepted by their
members.
Fayette Electric Cooperative has a long history of providing
electric services and more to thousands of people. It's part of who we are, to
bring people together in a united effort, to improve the quality of life for you,
our members, and the communities where you live. We're in business to serve our
customers.
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