Matters For Future Consideration

Trade with non-members

The scale of non-member trade needs to be discussed in co-operatives that provide members with services and also trade with non-members. While improving the co-operative economy through non-member trade is acceptable, if non-member trade exceeds trading with members, the reasons for it should be examined, in particular whether the co-operative is applying this 1st Principle of open and voluntary membership in practice. If users of a co-operative's services are choosing not to become members, new approaches should be adopted to encourage them to become members. In accordance with Principle 5, co-operatives should educate people on the benefits of membership and develop exclusive advantages for members.

Similarly, if members are not users of a co-operative's services, the reasons for them not being users should be analysed and their right to remain members should be considered.

Maintaining the 1st Principle in larger co-operative groups

How do larger more complex groups, which may include other businesses as subsidiaries and trade with non-members, maintain the Principle of open and voluntary membership? While such co-operatives have freedom of choice as to how this 1st Principle is applied, they need to consider how to account openly to their users and stakeholders for their application of the open membership and non-discriminatory provisions of this this 1st Principle.