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These are cooperative development principles practiced by members of Cooperation Works!



THE MADISON PRINCIPLES



Professional Standards for Cooperative Development Practitioners



Written by the members of CooperationWorks! in Madison, Wisconsin, 1995



1. Individuals providing technical assistance subscribe to the highest level of ethics and shall declare any conflict of interest, real or perceived, so that they can be a credible source of objective… Continue

Cooperatives and Due Diligence.



Due diligence is the research and analysis that a cooperative will perform in preparation for a business transaction. Due diligence is asking the tough questions. For example “Will this business support itself and cover all costs?” This is important for both start up and mature cooperatives. Due diligence means investigating and evaluating the opportunity or business activity in question and exercising care before entering into the… Continue

This is one of my favorite quotes about cooperatives, said by President Teddy Roosevelt in a report to Congress in 1909.



“The introduction of effective agricultural cooperation throughout the United States is of the first importance. Where farmers are organized cooperatively, they not only avail themselves much more readily of business opportunities and improved methods, but it is found that the organizations which bring them together in the work of their lives are used also for… Continue

Employees of a cooperative have challenges and opportunities that are not applicable to investor-owned firms. Because those who use the business are the owners, the employees are often interacting with owners. This can lead to all kinds of possible mishaps from information being shared inappropriately to organized political maneuvering.



Each cooperative has a unique corporate culture and ideally some resources are devoted to helping new employees understand what it is and how they… Continue

The life blood of any cooperative is its capital. Capital comes into the business in three primary ways – debt capital, equity capital, or retained earnings. (On rare occasions, a business might receive a grant or donation that is not debt, equity or from earnings.) In nearly all cases, the capital is in the form of dollars or money.



Debt capital is borrowed and must be paid back according to the terms of the loan. Debt can be short term or long term. Longer term (15+ years) debt… Continue