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 #4, Autonomy & Independence, and how credit unions live out that principle daily!
The National Credit Union Foundation defines this principle as the following:
Credit unions are independent, self-reliant organizations controlled by their member-owners, not outside stockholders. When making business deals or raising money, credit unions never compromise their autonomy or democratic member control.
The Fourth Principle of Autonomy and Independence was first established as a distinct principle of cooperative enterprise when the Cooperative Principles were revised in 1995. This principle primarily addresses the relationship between cooperatives and national governments, as well as international governmental organizations. Additionally, it impacts how cooperatives interact with other commercial entities, such as lenders providing capital and suppliers in dominant positions within the value chain.
As cooperatives, credit unions must not only adhere to principles that require transparency, democratic control, and cross-cooperative cooperation, but they must also operate in profitable, good-for-business ways as determined and defined by their membership. Within the cooperative framework, credit unions—large or small—are duty-bound to operate autonomously in ways that ensure the success of the credit union and profits that can be returned to members in better or fewer fees, dividends, or improved or expanded services.
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!