What is a co-operative?

Find out why Dr. David Suzuki chooses to work with co-operatives and learn more about the types and diversity of co-operative and credit unions.

A co-operative is an enterprise that is owned and democratically controlled by its members. A co-operative may also be defined as a business that is owned and controlled by the people who use its services or by the people who work there.

Co-operatives exist in virtually every sector of the economy, from agriculture to financial services, from housing to health care, from retail stores to renewable energy. There are child care co-operatives, car sharing co-operatives, elder care co-operatives, artists' co-operatives, funeral co-operatives...the list is endless. What they all have in common is that they are membership-based, they are driven by social as well as economic concerns, and are guided by seven internationally-recognized principles. In short, they care about the needs of their members and the quality of life in their communities, as well as the bottom lines of their businesses

The co-operative difference

Co-operatives (which include credit unions) differ from other businesses in three specific ways:

• A different purpose: The primary purpose of co-operatives 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 use the one-member/one vote system, not the one-vote-per-share system used by most businesses. This helps the co-operative serve common needs rather than the needs of a handful of individuals. It is also a way of ensuring that people, not capital, control the organization.

• A different allocation of profit: Co-operatives share profits among their member-owners on the basis of how much they use the co-operative, not on how many shares they hold. Most co-operatives invest a significant portion of their profits in improving service to members and promoting the well-being of their communities.

"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."
--- International Co-operative Alliance (ICA)