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Land Reform Act Part 2 Guidance
The Mission, Beliefs and Operating Principles of Credit UnionsIan MacPherson, 1999Versions: RTF (21KB) PDF (21KB)
Contents
The World Council of Credit Unions is the international organisation of credit unions and similar co-operative institutions. Its mission is to assist members to organise, expand, improve and integrate credit union and related institutions as effective instruments for the economic and social development of people. The World Council of Credit Unions shall:
The World Council’s statement of beliefs affirms the movement’s commitment to the expansion around the globe regardless of race, nationality, sex, religion and politics. It envisions credit unions as vehicles of social, economic and human development, for both individuals and communities. It calls for credit unions to encourage the prudent utilisation of local savings and to work with other credit unions in the interests of their members. It calls upon all credit union organisations to become self-sufficient institutions controlled through effective democratic processes. And it encourages credit unions to develop the best human resources, whether elected or paid employees.
This statement of beliefs is a forceful expression of what the credit union idea has become after some 80 years of experience. It possesses considerable cohesion while it explicitly and implicitly suggests the direction in which the movement should go. The emphasis is on a free, independent movement that operates democratically in the interest of the members. Another important aspect is its explicit support for a unified system operating within a global framework.
The operating principles are derived partly from practices that have emerged over the years from within credit union organisations and partly from co-operative principles articulated by the International Co-operative Alliance in 1937, 1966 and 1995. The 10 operating principles for credit unions are:
These principles can be grouped into three primary categories: democratic structures, services to members; and social goals.
Open and Voluntary MembershipMembership in a credit union is voluntary and open to all within the accepted common bond of association that can make use of its services and are willing to accept the corresponding responsibilities. Democratic ControlCredit union members enjoy equal rights to vote (one member, one vote) and participate in decisions affecting the credit union, with regard to the amount of savings or deposits or the volume of business. Voting in credit union support organisations or associations may be proportional or representational, in keeping with democratic principles. The credit union is autonomous, within the framework of law and regulation, recognising the credit union as a co-operative enterprise serving and controlled by its members. Credit union elected offices are voluntary in nature and incumbents should not receive a salary. However, credit unions may reimburse legitimate expenses incurred by elected officials. Non-DiscriminationCredit unions are non-discriminatory in relation to race, nationality, sex, religion, and politics. Services to Members Service to MembersCredit unions services are dedicated to improve the economic and social well-being of all members. Distribution to MembersTo encourage thrift through savings and thus provide loans and other services, a fair rate of interest is paid on savings and deposits, within the capacity of the credit union. The surplus arising out of the operations of the credit union after ensuring appropriate reserve levels and after payment of limited dividends on permanent equity capital where it exists, belongs to and benefits all members with no member or groups of members benefiting to the detriment of others. This surplus may be distributed among members in proportion to their transactions with the credit union as interest or patronage refunds, or directed to improved or additional services required by members. Building Financial StabilityA prime concern of the credit union is to build financial strength, including adequate reserves and internal controls that will ensure continued service to membership. Social Goals On-Going EducationCredit unions actively promote the education of their members, officers and employees, along with the public in general, in the economic, social, democratic, and mutual self-help principles of credit unions. The promotion of thrift and the wise use of credit, as well as education on the rights and responsibilities of members are essential to the dual social and economic character of credit unions in serving member needs. Co-operating Among Co-operativesIn keeping with their philosophy and the pooling practices of co-operatives, credit unions within their capacity actively co-operate with other credit unions, co-operatives and their associations at local, national and international levels in order to best serve the interests of their members and their communities. Social ResponsibilityContinuing the ideals and beliefs of the co-operative pioneers, credit unions seek to bring about human and social development. Their vision of social justice extends both to the individual members and to the larger community, in which they work and reside. The credit union ideal is to extend service to all who need and can use it. Every person is either a member or a potential member and appropriately part of the credit union sphere of interest and concern. Decisions should be taken with full regard for the interest of the broader community within which the credit union and its members reside.
This paper is an edited version of chapter 9 of Ian MacPherson’s splendid history of the international credit movement.
For details on how to purchase a copy of the book and/or obtain further information on credit unions contact: E-mail: mail@woccu.org Web: www.woccu.org
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