Question

According to the 1995 ICA Principles, capital in a co-operative should be:

• A. Distributed equally among members without conditions
• B. The master of the enterprise
• C. Only controlled by the board
• D. A servant, not the master of enterprise

Answer 1

Answer:

D. A servant, not the master of enterprise

The 1995 ICA Statement on Co-operative Identity emphasizes that capital should serve the members and the cooperative’s objectives, not dominate decision-making. In a cooperative: Member needs and community welfare come first, not maximizing returns on capital. Capital is a tool (servant) to achieve the cooperative’s social and economic goals. This principle ensures that cooperatives remain member-focused and democratic, rather than profit-driven like conventional corporations.