"Co-operatives work for the sustainable development of their communities." This phase is both an observation and statement of fact. the co-operative value of "social responsibility and caring for others" is evidenced by co-operatives delivering benefits for the communities in which they operate as well as for their members.
"The sustainable development of their communities": the concept of "sustainable development" in this phrase derives from and refers to the debate at the 1992 UN earth Summit that defined "sustainable development" as development that will through the economic, environmental and social benefits it creates, improve the living standards of current and future generations, contribute to peaceful co-existence, social cohesion, social justice and social progress, and do so in a way that protects and does not degrade the natural environment. Since 1997, the International Court of Justice has recognised sustainable development as a concept of public international law. there is consensus that the concept has three aspects: ecological balance, social justice and economic security. They are mutually interdependent and regenerative, hence must be pursued concomitantly.
"The sustainable development of their communities": the word "their" is a possessive pronoun. It refers to communities to which the co-operative belongs and which belong to it; in other words, communities in which its business operates. Its inclusion in this phrase shows that the primary emphasis of concern is for the local communities within which a co-operative carries on its business operations.
"Through policies approved by their members". this places a duty on elected boards and management to seek approval from members in general assembly to policies that positively impact on the sustainable community development. It is the members who have the democratic right to control the dynamic creative tension inherent in this Principle: the balance between self-interest and the wider concern for community. In practice, there are many examples of co-operative members demanding a greater commitment to economic, environmental and social development by their co-operative.