Co-operatives and credit unions are driven by both economic and social concerns. They are community-based organizations that care not only about the bottom lines of their businesses, but about the needs of their members and the quality of life in their communities. Co-operatives and credit unions differ from other businesses in three key ways :
1. A Different Purpose
The primary purpose of co-operatives and credit unions is to meet the common needs of their members, whereas the primary purpose of most investor-owned businesses is to maximize profit for shareholders.
2. A Different Control Structure
Co-operatives and credit unions use the one-member/one-vote system, not the one-vote-per-share system used by most businesses. This helps the co-operative or credit union serve the common need rather than the individual need, and is a way to ensure that people, not capital, control the organization.
3. A Different Allocation of Profit
Co-operatives and credit unions share profits among their member-owners on the basis of how much they use the co-op, not on how many shares they hold. Co-operatives and credit unions also tend to invest their profits in improving service to members and promoting the well-being of their communities.
