As we celebrate Randolph Electric’s 80th anniversary this year, I’ve been thinking a lot about the cooperative’s foundation. In the 1930s, a group of forward-thinking citizens had the vision and determination to work together to make life better in their community. These were not the Rockefellers or Vanderbilts of that day, mind you. They were farmers, store clerks, factory workers—people like you and me—and they laid the groundwork for the thriving cooperative we have today.
Fortunately, the group had a set of principles to guide them in creating a fair and equitable business model for the consumers that use their services. This month, I want to reflect on the seven cooperative principles that are still the driving force behind the co-op’s operations 80 years later.
- Voluntary and Open Membership — Cooperatives 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.
- Democratic Member Control — Cooperatives are democratic organizations controlled by their members, who actively participate in setting policies and making decisions. The elected representatives are accountable to the membership. In primary cooperatives, members have equal voting rights (one member, one vote) and cooperatives at other levels are organized in a democratic manner.
- Members’ Economic Participation — Members contribute equitably to, and democratically control, the capital of their cooperative. At least part of that capital is usually the common property of the cooperative. Members usually receive limited compensation, if any, on capital subscribed as a condition of membership. Members allocate surpluses for any or all of the following purposes: developing the cooperative, possibly by setting up reserves, part of which at least would be indivisible; benefiting members in proportion to their transactions with the cooperative; and supporting other activities approved by the membership.
- Autonomy and Independence — Cooperatives are autonomous, self-help organizations controlled by their members. If they enter into agreements with other organizations, including governments, or raise capital from external sources, they do so on terms that ensure democratic control by their members and maintain their cooperative autonomy.
- Education, Training, and Information — Cooperatives provide education and training for their members, elected representatives, managers, and employees so they can contribute effectively to the development of their cooperatives. They inform the general public, particularly young people and opinion leaders, about the nature and benefits of cooperation.
- Cooperation Among Cooperatives — Cooperatives serve their members most effectively and strengthen the cooperative movement by working together through local, national, regional, and international structures.
- Concern for Community — While focusing on member needs, cooperatives work for the sustainable development of their communities through policies accepted by their members.
I feel extremely fortunate to work for, belong to and have ownership in a business that cares about the people who use its services, and I know I’m not the only one. Your employees, management and board of directors consider it a privilege to work for you and pledge to keep these principles top of mind in their jobs each day.
Dale F. Lambert
Chief Executive Officer