What do the ICA Guidance Notes tell us about principle 7?

Co-op law expert Dante Cracogna expands on the idea of concern for community

What does the seventh co-operative principle of concern for community mean today? And how should it be interpreted? To find out, we interviewed Dr Dante Cracogna, who wrote the chapter on this principle in the International Cooperative Alliance’s Guidance Notes on the Co-operative Principles. Cracogna is professor of commercial law at the University of Buenos Aires; of business law at the University of Business and Social Sciences; and of specialisation in corporate business at the Argentine Notarial University (Argentina). He is also a member of the ICA Committee on Co-operative Law.

Can you tell us how the work on the ICA Guidance Notes began and how you ended up writing the chapter on principle seven?

At the 2011 ICA General Assembly, ICA Americas formulated an initiative to reform the seventh principle by emphasising environmental care. Although it was not formally accepted, it had the effect of provoking a broad debate on the subject that culminated in the approval of a protocol incorporated into the ICA statute for the eventual modification of the principles and the decision to develop a guide for the interpretation of the principles. Thus, in the same resolution adopted by the 2012 ICA Extraordinary Assembly on the procedure for the reform of the principles, the board of directors was instructed to appoint a committee in charge of drafting Guidance Notes on the Co-operative Principles that would update the reference document approved at the time by the Centennial Congress. In this way, the aim was to ensure that the interpretation of the principles remained in tune with the evolution of the economic, social, political, cultural and technological reality, demonstrating the relevance of the values ​​and principles for the new generation. The Council appointed the members of the Principles Committee and the latter designated those who were to prepare the initial documents on each of the principles. I was responsible for drafting the document on the 7th principle, probably because I came from the region that had proposed its modification at the time. But all the work was done as a team and with wide consultation; finally, the editing was an expert task carried out by David Rodgers.

How can the principle of concern for community be interpreted in the current global context? And why is it important?

The Notes emphasise the importance of caring for the environment as a relevant aspect of the content of this principle, as well as social sustainability and a commitment to peace and social justice. They insist on sustainability as a substantial concept of development in all its forms, emphasising its three fundamental and interdependent dimensions: economic, social and environmental, pointing out the importance of its permanent evaluation through an appropriate social balance. The application of ethical values ​​in economic operations is pointed out as the way to put this principle into practice, contributing to sustainable development. An aspect that they emphasise is the need for joint work with other organisations to achieve better results in sustainable development, since it is an objective whose magnitude far exceeds the possibilities of isolated efforts. Therefore, the seventh principle, being the last and the most concise of all – since it is expressed in just one line – constitutes something like a culmination and synthesis of the previous ones, since it summarises the meaning of all co-operative organisation and action: concern for the community that transcends individual interest by uniting it with the interests of all members of the co-operative. Individual interests are not annulled but are synthesised in the interest of all members expressed in the co-operative. Hence, the co-operative is opposed to selfish individualism but also to collectivism that nullifies people.

Related: Reflections on the 3rd co-operative principle

How should co-operators and co-operatives use the Guidance Notes to better understand the application of the principles in the 21st century?

The basic idea that can be identified in the brief statement that explains the seventh principle is that of sustainable development. In other words, co-operatives should not work for any development or development at any price, but rather for a development capable of serving future generations, meeting economic, social and environmental aspects in addition to current needs. This idea of ​​sustainable development is superior to the notion of development that was in force a few decades ago and was identified with economic growth. In this sense, the Sustainable Development Goals (SDGs) proclaimed by the UN in 2015 have come to specify contents and actions that give tangible meaning and universal scope to this notion. In turn, the ICA has incorporated the SDGs into its agenda on numerous occasions, expressing its adherence to them. On the other hand, Public International Law has incorporated the notion of sustainable development into its repertoire of principles. Just as the Declaration of the Vienna Congress incorporated a new principle – that of co-operation between co-operatives – the Manchester Congress did the same with the principle of concern for the community. This parallel can also be projected in a double order of ideas: a) as a response to the new circumstances of the context and b) as an explanation of an intrinsic and underlying characteristic of the co-operative nature. 

The Guidance Notes were designed as living documents. Is it necessary to update them given the changes that have occurred in the last two decades?

Indeed. The principles must be interpreted in accordance with the changing circumstances of the environment in which co-operatives operate. This was expressly recognised by the then president of the ICA, Dame Pauline Green, who states in the foreword to the publication of the Notes by the ICA in 2015: “We intend that these notes remain ‘alive’ in that they are always updated as the years go by.” For his part, Jean-Louis Bancel, the chair of the Principles Committee that was in charge of drafting the Notes, said in the preface: “These Guidelines are not set in stone nor are they immutable. They are constantly evolving, dynamic documents that reflect our current understanding of the principles.” For my part, I understand that these Notes allow for an interpretation that must always be updated, without resorting to reforms or modifications of the principles. This is what I have been arguing in the ICA’s Co-operative Identity Working Group, which is focusing on this topic as a result of the debates on co-op identity that took place in Seoul in 2021.

How do you see The conversation on co-operative identity continuing at the ICA Global Conference in New Delhi?

The debate on co-operative identity is ongoing because, as the motto of the Seoul Congress states, it is necessary to “deepen our co-operative identity.” And this is a task that is never finished since we will never be able to say that we have fulfilled the principles sufficiently. The principles can always be fulfilled better: there can always be greater democracy, greater economic participation of the members, greater co-operative education, greater co-operation between co-operatives and greater concern for the community. Above all, in this last aspect, the task to be carried out will always be unfinished, since the economic, social and environmental needs are multiple and always changing. In this field, co-operatives have a permanently challenging role; sustainable development is never fully achieved and the capacity and will of co-operators will be continually stimulated to respond to the community, both locally and globally. The transformation of the world is the goal: the construction of the New Moral World to which Robert Owen and the pioneers aspired. I hope to be able to participate in the Global Conference in New Delhi and to discuss with co-operators from all over the world about this fascinating task of contributing to improving the destiny of all on the eve of the new International Year of Cooperatives.