Credit unions are co-operatives; they operate according to the core co-operative principles and values adopted by the International Co-operative Alliance. These principles mean that credit unions put their members first and clearly delineate why credit unions operate differently from other financial institutions.
1. Open and Voluntary 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.
2. Democratic Member Control
Co-operatives are democratic organizations controlled by their members, who actively participate in setting policies and making decisions. Representatives (directors) are elected among the membership and are accountable to them. Credit union members have equal voting rights (one member, one vote).
3. Members’ Economic Participation
Members contribute equitably to and democratically control the capital of their co-operative. At least part of that capital remains the common property of the co-operative. Members allocate surpluses for any or all of the following purposes: developing the co-operative, setting up reserves, benefiting members in proportion to their transactions with the co-operative, and supporting other activities approved by the membership.
4. Autonomy and Independence
Co-operatives are autonomous, self-help organizations controlled by their members. If they negotiate with other organizations, including governments, or raise capital from external sources, they do so on terms that ensure democratic control and their unique identity.
5. Education, Training, and Information
Education and training for members, elected representatives, CEOs, and employees help them effectively contribute to developing their co-operatives. Communication about the nature and benefits of co-operatives, particularly with the general public and opinion leaders, helps boost co-operative understanding.
6. Cooperation Among Co-operatives
By working together through local, national, regional, and international structures, co-operatives improve services, bolster local economies, and deal more effectively with social and community needs.
7. Concern for Community
Co-operatives work for the sustainable development of their communities through policies supported by the membership.
Please click here to read the Guidance Notes on the Co-operative Principles.