1. Democratic Governance

• One member, one vote: Regardless of the amount of capital contributed, each member typically has equal say in major decisions.
• Members elect a board of directors, who then hire professional managers (if needed).

2. Member Participation

• Members are both owners and users (producers, workers, or consumers) of the cooperative.
• Active involvement in setting policies and decision-making is encouraged.

3. Economic Participation

• Members contribute equally and equitably to the cooperative’s capital.
• Surpluses are either reinvested or distributed among members based on their use of the cooperative, not investment.

4. Autonomy and Independence

• Cooperatives are self-help organizations controlled by their members, even when entering agreements with other entities or raising capital.

5. Education, Training, and Information

• Management focuses on informing and educating members and employees about cooperative principles and operations.

6. Concern for Community

• Cooperatives aim to contribute to the sustainable development of their communities through policies approved by their members.

Management Functions in Cooperatives

Cooperatives require:

• Planning (strategic and operational)
• Organizing (structuring the cooperative effectively)
• Leading (motivating and managing people)
• Controlling (monitoring performance and ensuring goals are met)

However, cooperative management must also prioritize transparency, member engagement, and social goals alongside financial performance.