The United Nations has declared 2025 the International Year of Cooperatives, highlighting how cooperatives build a better world through their vital role in sustainable development, inclusive growth, and strengthening community resilience.
As not-for-profit cooperatives, credit unions are uniquely equipped to foster financial well-being for all through their adherence to the seven Cooperative Principles originally adopted by The International Cooperative Alliance and an emerging eighth cooperative principle set by the National Credit Union Foundation and America's Credit Unions.
This month, let's learn more about Cooperative Principle #2, Democratic Member Control, and how credit unions live out that principle daily!
The National Credit Union Foundation defines this principle as the following:
Credit unions are democratic organizations owned and controlled by their members. Each member gets one vote, no matter their financial status, to help make the organization’s policies and decisions.
Democracy is a straightforward concept: it refers to the governance or control of an organization by its members through majority decision-making. When the first cooperatives were established in the mid-19th century, the principle of member democratic control was quite radical, especially its universal application to all members, including women and those without property ownership. Since the inception of cooperatives, this second democratic principle has been a defining feature and has served at the core of their governance.
In primary cooperatives, members have equal voting rights, with one member equaling one vote. Cooperatives like credit unions employ a one-member, one-vote process, regardless of how many loans a member has or how much they have on deposit.
As not-for-profit financial cooperatives focused on fostering financial well-being for all, credit unions reflect these time-honored Principles that have built the bedrock for their success and member success. Stay tuned as we continue to celebrate the Cooperative Principles throughout 2025!