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Ethos
Operating Principles
Statement of Credit Union Operating Principles as adopted at Annual General
Meeting of the Irish League of Credit Unions 1984.
Introduction
The Credit Union Operating Principles are founded in the philosophy of
co-operation and its central values of equality, equity and mutual self-help. At
the heart of these principles is the concept of human development and the
brotherhood of man expressed through people working together to achieve a better
life for themselves and their children.
1. Open and voluntary membership
Membership is a credit union is voluntary and open to all within the
accepted common bond of association that can make use if its services and are
willing to accept the corresponding responsibilities.
2. Democratic control
Credit union members enjoy equal right to vote (one member, one vote) and
participate in decisions affecting the credit union, without regard to the
amount of savings or deposits or the volume of business. 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 it members.Credit
union elected officers are voluntary in nature and incumbents should not receive
a salary for fulfilling the duties for which they were elected. However, credit
unions may reimburse legitimate expenses incurred by elected officials.
3. Limited dividends on equity capital
Permanent equity capital where it exists in the credit union receives
limited dividends.
4. Return on savings and deposits
To encourage thrift through savings and thus to provide loans and other
member services, a fair rate of interest s paid on savings and deposits, within
the capability of the credit union.
5. Return of surplus to members
The surplus arising out of the operations of the credit union after ensuring
appropriate reserve levels and after payment of dividends belongs to and
benefits all members with no member or group of members benefiting to the
detriment of others. This surplus may be distributed among members in proportion
to their transactions with the credit union (interest or patronage refunds) or
directed to improved or additional services required by the members. Expenditure
in credit unions should be for the benefit of all members with no member or
group of members benefiting to the detriment of others.
6. Non -discrimination in race, religion and politics.
Credit unions are non-discriminatory in relation to race, nationality, sex,
religion and politics within the limits of their legal common bond. Operating
decisions and the conduct of business are based on member needs, economic
factors and sound management principles. While credit unions are apolitical and
will not prevent or restrict them from making such political representations as
are necessary to defend and promote the collective interests of credit unions
and their members.
7. Services to members.
Credit union services are directed towards improving the economic and social
well being of all members, whose needs shall be a permanent and paramount
consideration, rather than towards the maximising of surpluses.
8. On-going education
Credit 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.
9. Co-operation among co-operatives
In keeping with their philosophy and the pooling practices of co-operatives,
credit unions within their capability actively co-operate with other
associations at local, national and international levels in order to best serve
the interests of their members and their community. This inter-co-operation
fosters the development of the co-operative sector in society.
10. Social responsibility
Continuing the ideals and beliefs of 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 interests of the broader community
within which the credit union and its members reside.
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