Autonomy and Independence

5. Autonomy and Independence

The fourth principle states that co-operatives are autonomous, self-help organisations controlled by their members. If a co-operative enters into agreements with other organisations — including the government — or raises capital from outside sources, it must do so on terms that preserve its members' democratic control and keep its co-operative autonomy.

Autonomy means self-government — the co-operative governs itself through its own members. Independence means it stands on its own feet and is not controlled by any outside body. A co-operative is essentially a self-help organisation: its members join to help themselves and one another, not to be run by others.

This principle recognises a real risk. Co-operatives often deal with the government, banks and other bodies — they may take loans, receive assistance, or enter into contracts. There is a danger that whoever provides money or help may then try to control the society. The fourth principle guards against exactly this. A co-operative may accept outside capital or support, but only on conditions that leave the ultimate control in the hands of its own members and do not surrender its independence.

How it works in practice:

• The society frames its own bye-laws and takes its own decisions through its members and elected committee.
• When borrowing or accepting government/agency support, it ensures the terms do not hand over control to the outside provider. …