What is a Co-op?
A cooperative (also known as a co-op), is a purpose-driven, democratically governed business owned and managed by the people who work in or benefit from it. Unlike traditional businesses that rely on external shareholders or top-down executive decision-making, co-ops are governed by democratic processes. Members may, for example, elect representatives to management and leadership positions, ensuring that the organization remains accountable to those directly involved in its activities. By fostering shared ownership, mutual support, and participatory decision-making, cooperatives can both meet immediate needs and serve as the seeds for a more just, inclusive, and democratic society.
Types of Cooperatives
Worker Cooperatives – Worker cooperatives are businesses owned and democratically controlled by the workers themselves. Those who produce goods and services are the same people who make decisions about the direction, management, and governance of the organization.
Consumer Cooperatives – Consumer cooperatives are organizations owned by the consumers who use their services. They access goods and services at better prices and have a say in the operations of the co-op.
Producer Cooperatives – Producer cooperatives are made up of independent producers, such as farmers and artisans, who collectively market and distribute their products to to reduce costs, access larger markets, and increase their collective bargaining power.
Financial Cooperatives – Financial cooperatives are member-owned financial institutions that provide savings accounts, loans, and other banking services while returning profits to members instead of external shareholders. Credit unions, for example, are a common type of financial cooperative.
Multi-Stakeholder Cooperatives – Multi-Stakeholder Cooperatives bring together different groups for shared benefits. Multi-Stakeholder Cooperatives are co-ops that unite diverse stakeholders, such as workers, consumers, and producers, to balance interests and build strong, community-centered enterprises.
The Seven Cooperative Principles
Cooperatives operate according to seven internationally recognized principles, which balance economic goals with social values.²
Voluntary and Open Membership
Democratic Member Control
Members’ Economic Participation
Autonomy and Independence
Education, Training and Information
Cooperation Among Cooperatives
Concern for Community
A Example: Ocean Spray
One of the most well-known cooperatives is Ocean Spray, an agricultural co-op based in Massachusetts, USA.
With over 700 farmer-members, Ocean Spray represents over 70% of North America’s cranberry production. It exemplifies the economic power and collaborative potential of the cooperative model while ensuring fair participation and shared benefits among members.
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¹ Strategy and Innovation Policy Sector, “Government of Canada,” Co-operatives in Canada, January 30, 2025, https://ised-isde.canada.ca/site/cooperatives-canada/en/understanding-co-operatives-how-they-work-typesand-contributions#s3.
² International Cooperative Alliance, “Cooperative Identity, Values & Principles,” International Cooperative Alliance, accessed July 7, 2025, https://ica.coop/en/cooperatives/cooperative-identity.