Women's only co-operatives do not breach the 1st Principle where they are established to overcome wider gender discrimination and disadvantage. Sewa Women's Association in India enables women to participate in economic life and gain the skills and experience necessary to participate in larger co operatives.

The 1st Principle specifically asserts the principle of open membership without social, racial, political or religious discrimination.

Some co-operatives are organised specifically to serve minority cultural, ethnic or religious groups. Faith-based co-operatives and faith leaders, in particular, have a proud history of promoting the development of co-operatives to tackle poverty and promote financial inclusiveness, many of these co-operatives being open to people of other faiths. Faith-based co-operatives have every right to exist where they are established in order to overcome the exclusion and disadvantage that minority groups suffer so long as they do not discriminate against others, do not impede organisation of like co-operatives among other cultural groups, do not exploit non-members in their communities, and so long as they accept responsibility for participating in and fostering the development of the wider co-operative movement.

While co-operative members are free to affiliate to any political party, religious or cultural group, they are not free to discriminate against other members. From its earliest foundation from the ideals of Robert Owen, the co-operative movement has always been open to people of all political persuasions. The Owenite Co-operative Congress in 1832 passed the following resolution, which was clearly picked up in the 1937 review of the Principles in the principle of 'political and religious neutrality':

"Whereas the co-operative world contains persons of all religious sects, and of all political parties, it is unanimously resolved that co-operators as such, are not identified with any religious, irreligious, or political tenets whatever; neither those of Mr Owen nor of any other individual".

Likewise, the Rochdale Pioneers' 1860 Rules of Conduct included an introductory paragraph which said:

"The present co-operative movement does not intend to meddle with the various religious or political differences which now exist in society, but by a common bond, namely that of self-interest, to join together the means energies and the talents of all for the common benefit of each".

This principle of political and religious neutrality has been maintained in every review and reformulation of these Co-operative Principles.

Political engagement by co-operatives does not interfere with the political neutrality inherent in this 1st Principle if membership of a co-operative remains open irrespective of each member's personal political persuasion. Political neutrality is not the same as political indifference. In the interests of their members, co-operatives need to behave as 'citizens' engaging with other civil society organisations or having contacts with political institutions in order to ensure that national laws, tax regimes and business regulations do not disadvantage them in comparison with investor owned businesses. Engagement may be direct or through national co-operative federations or apex organisations. As the eminent French economist and tireless early champion of the co-operative movement, Charles Gide, said: "co-operatives ought never to abstain from taking up an attitude in discussions on the big economic and social problems which interest Co-operation".7

Social class or caste has no bearing on the right of individuals to be members. Co-operatives are open to rich and poor alike. Other social distinctions or personal characteristics should not be used to restrict the principle of open membership. Race is also not a characteristic that can be used to discriminate against those who wish to become members. Racial characteristics are superficial and do not constitute grounds for discrimination. Cultural differences are more significant, but these differences should be celebrated as the glorious rainbow of human diversity and not used to limit membership.

Co-operatives have always been socially progressive organisations. Where they encounter prejudice, which manifests itself in exclusivity and discrimination, they should, in the tradition of their founders, challenge it. This should be done, in particular, in every co-operative by the application of the 1st Principle of open membership without discrimination. All co-operatives are encouraged take steps to remove barriers to membership and facilitate the participation of all excluded groups in society.