12 SENIOR HIGH SCHOOL

Understanding Culture,
Society and Politics
Quarter 2 – Week 1: Non-State
Institution

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Understanding Culture, Society and Politics – Grade 12
Alternative Delivery Mode
Quarter 2 – Week 1: Non-State Institution
First Edition, 2020

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Published by the Department of Education

Secretary: Leonor Magtolis Briones
Undersecretary: Diosdado M. San Antonio

Development Team of the Module

Mary Jean A. Jocutan Joevan W. Alcala
Writers: Editors: Reviewers: Illustrator:
Gemma F. Depositario, Ed.D. Typesetter
Layout Artist:
Mila A. Reyes

Management Team: Senen Priscillo P. Paulin, CESO VRosela R. Abiera Joelyza M. Arcilla, Ed.D.Maricel
Marcelo K. Palispis, Ed.D.Elmar L. Cabrera Nilita L. Ragay, Ed.D.
Carmelita A. Alcala, Ed.D.

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Office Address: Kagawasan, Ave., Daro, Dumaguete City, Negros

Oriental Tele #: (035) 225 2376 / 541 1117
E-mail Address: negros.oriental@deped.gov.ph

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 What I Need to Know

MELC: Explain the forms and functions of state and non-state institutions

At the end of the module, you should be able to:

1. Identify the different types of non-state institutions;

2. Explain the purpose and functions of organizing cooperatives and trade unions;&
3. Acknowledge the benefits of non-state institutions in our social life.

What are non-state institutions?

How do non-state institutions such as banks and corporations affect society?
Are there ways to improve the predicament of many low-income individuals who
continually struggle to meet their daily needs?
Non-state Institutions these are establishments which are not owned and controlled
by the government.

What I Know

Direction: Read each item carefully and use your notebook to write your answers.

1. Which of the following is not a non-state institution?

A. Bank C. Corporations
B. DepEd D. None of the choices

2. What is known as the bank of all banks in the Philippines?

A. Bank of the Philippine Island C. Landbank
B. Central Bank of the Philippines D. Veterans Bank

3. What organization is legally bound by a charter to conduct a certain type of business?

A. Corporation C. Trade Union
B. Cooperative D. None of the choices

4. Which of the following is Not a function of a bank?

A. Serves as link between the source of funds, the depositor, the fund user, and the
borrower
B. Does not provide safe keeping place for money and valuables of individuals
C. Receive savings and deposits of their clients
D. All of the above

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5. What does it mean when the corporation has unlimited life?
A. not ceasing to exist if a major stockholder die
B. the corporate form is the most effective for raising money
C. spreading business risks among many owners
D. None of the choices

6. In what category of banks does a private development bank belong?

A. Commercial banks C. Rural Banks
B. Thrift banks D. None of the choices

7. It is written applications to the government requesting permission to form a corporation?

A. Articles of incorporation C. Letter of Intent
B. Request for clearance D. None of the choices

8. Which of the following is a primary reason why banks play significant roles in the
country’s economy?
A. They are the ones providing the needs of the people that the government cannot
provide.
B. They provide safe-keeping place for money and valuables of individuals.
C. They link in the transfer of money from the source to the borrower.
D. None of the choices

9. What refers to a voluntary association of either employees, employer, or independent

workers to protect their interest and avoid maltreatment?
A. Cooperative C. Corporation
B. Trade unions D. None of the choices

10. What type of cooperative procures and distribute commodities to members and non-
members?
A. Credit cooperative C. Consumer Cooperative
B. Producer cooperative D. Marketing Cooperative

11. What is a voluntary organization of people who have agreed to pool their resources
together in other to undertake an economic plan?
A. Trade unions C. Bank
B. Cooperative D. Corporation

12. How is a cooperative and trade union similar?

A. Organized and formed by a group of people to protect their interest
B. Promote the common good among members
C. Voluntary in nature
D. All of the above

13. Every quarter of the year, the service cooperative is conducting a seminar about
specialized knowledge related to different fields of their members. Which function of the
cooperative is best described by the situation?
A. Provide maximum economic benefits to its members
B. Teach people efficient and effective ways of doing things in a cooperative manner
C. Propagate cooperative practices and new ideas in business and management

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 D. None of the choices

14. Which is not a purpose of trade / labor union?

A. negotiate wages and working condition terms
B. doesn’t help in settling grievances
C. regulate relations between workers
D. All of the above

15. What does a credit cooperative want to promote among its members?
A. Procures and distributes commodities to members and non-members
B. Undertakes joint agricultural or industrial production
C. Promotes thriftiness among its affiliates, and creates funds to grant loans for
productive endeavor of members
D. Participates in the supply of production inputs to constituents, and markets their
products

What’s In
Task 1:
Fill-in the diagram with the different types of non-state institutions that are familiar to you.

What’s New

Read and answer the following questions. Write your answers in your notebook.

1. Can you identify the different types of non-state institutions?

2. Who owned these institutions?
3. Does the government have power/control over these institutions?

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 What is It

Non-state institutions refer to institutions that are organized by private individuals or

groups for the purpose of providing services to the members of society. These institutions
are not controlled by the government but are regulated through laws and statutes of the
state.
There are non-state institutions that play vital roles in the economy because they are
the ones providing the needs of the people that the government cannot provide. However, a
corresponding price or payment is needed in exchange for their services.
Typical examples are different kinds of financial institutions, specifically a bank, and
different kinds of business organizations, specifically a corporation.
Trade unions and cooperatives have the primary role of promoting labor welfare
and good industrial relations. Trade unions and cooperatives are organizations comprising
workers and laborers with common goals, purposes, and interests. They mostly concern
employment relations, decency, and welfare
Financial institutions are organizations that serve as bridges or intermediaries that
facilitate the flow of money in various transactions. This means that financial institutions
serve as links between the source of funds, the depositor, the fund user, and the borrower.
Banks receive savings and deposits of their clients. These may be loaned out to
borrowers.
Example:

Juan dela Cruz has PhP 10,000.00, which he has saved from his salary as a
manager. He deposits it at Maharlika Bank, which offers a 2% interest per annum.
This would mean that if he does not withdraw any of his savings, he will get
10,000.00 + 2% = 10,200.00 after one year.
Now, Mr. Entrepreneur needs PhP 7,000.00 because he wants to put up a sari-sari
store. He borrows PhP 7,000.00 form Maharlika Bank.
Can you see the flow of money? Juan gets more than PhP 10,000.00 after a year. At
the same time, he is able to help Mr. Entrepreneur put up a business. These would
not have happened without the help of Maharlika Bank since Juan and Mr.
Entrepreneur do not know each other.
Banks started during the Renaissance period in Italy. The word 'bank' traces its origin
from the Old Italian word banca which means 'table' or 'bench,' and is where transactions
occurred at that time.
The role of a financial institution as a link in the transfer of money from the
source to the borrower is very important to our economy.
Banks provide safe-keeping place for money and valuables of individuals. They also
perform a role in settling payments and credit intermediation.

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 BANKING INSTITUTIONS
The Bangko Sentral ng Pilipinas is known as the banks of all banks in the
Philippines. It is the bank responsible for the regulation, creation, and management of
monetary supply in the country.
These are the different types of banks:

 Commercial banks accept savings deposits, check deposits, and time deposits.
Examples of Philippine commercial banks are Bank of the Philippine
Islands and Metrobank.
 Thrift banks are categorized into stock savings and loan associations, savings and
mortgage banks, and private development banks. They consolidate the savings
deposits of their members into a fund from which their members can draw loans with
interest. They also accept deposits from the public and provide loans for small- and
medium-scale enterprises.
 Rural banks cater primarily to farmers and small business people, mostly in rural
areas.
CORPORATIONS
A corporation is an organization of people legally bound by a charter to conduct
some type of business. It has a legal entity separate from its owners. The type of business
that a corporation wants to venture in depends on its articles of incorporation.
Articles of incorporation are written applications to the government requesting
permission to form a corporation. This will give the name, address, and type of business for
the corporation; the names of the officers, and the initial amount of money being put into the
business.
The following are the advantages of corporations as business organizations in the
economy:

 easy to raise funds–since the corporate form is the most effective for raising money
 limited liability–the concept that owners of the business are only responsible for its
debts up to the amount they invest in the business
 unlimited life–not ceasing to exist if a major stockholder dies
 specialized management–affording to have specialized managers to run the business
 shared risks–spreading business risks among many owners

The following are the disadvantages of corporations as business organizations in the

economy:

 difficult to start–needs government approval before starting the business

 less direct control–owners that are usually far from the day-to-day operation of the
business
 double taxation–corporate taxes that need to be paid by the corporation and the
owner who received dividends from the profit
 limited activities–limited activities by the article of incorporation

COOPERATIVES AND TRADE UNIONS
A cooperative is a voluntary organization of people who have agreed to pool their
resources together to undertake an economic enterprise to meet their everyday needs. A
cooperative is something that they democratically manage, control, and share the economic
benefits by participation and patronage (Cooperative Development Authority, CDA).

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 Trade unions or labor unions are voluntary associations of either employees,
employers, or independent workers to protect their interest and become an instrument of
defense against exploitation and maltreatment.
The commonalities of these two non-state institutions are the following:

 organized and formed by a group of people to protect their interest,

 promotes the common good among members, and
 voluntary in nature.
Type of Cooperative Description
Credit cooperative Promotes thriftiness among its affiliates, and creates funds to
grant loans for productive endeavour of members
Consumer cooperative Procures and distributes commodities to members and non-
members
Producer cooperative Undertakes joint agricultural or industrial production
Marketing cooperative Participates in the supply of production inputs to constituents,
and markets their products
Service cooperative Engages in medical and dental care, hospitalization,
transportation, insurance, housing, labor, electric lights and
power, communication, and other services

The Differences between Cooperatives and Trade Unions

As to the Purpose:
Cooperatives Trade Unions
Republic Act 6938: Cooperative Code of the Philippines
To encourage thrift and savings mobilization among members, To maintain or
improve the conditions
To produce funds and extend credit to constituents for productive of employment at the
and provident purposes, workplace, such as
ensuring safety
To encourage systematic production and marketing among standards, right to be
members, protected from unfair
To provide goods, services, and some requirements to members, termination of
To develop expertise and skills among members, employment, right to
paid leave, and right to
To acquire lands and provide housing benefits or support to equality,
members,
To bargain with the
To insure against losses of the members, employer on behalf of
the union members
To promote or advance the educational, social, and economic and negotiate labor
status of members, contracts, and

To establish, own, or lease cooperative banks, cooperative To protect the

wholesale and retail complexes, insurance, agricultural, or economic, political,
industrial processing enterprises, and public markets, and and social interests of
its members
To coordinate and facilitate various activities of the union.

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As to Function:
Cooperatives Trade Unions
Provide maximum economic benefits to its Negotiate or discuss with the management
members the issues that affect the organization’s
workers
Teach people efficient and effective ways of Represent individual members when they
doing things in a cooperative manner have a problem at work

Propagate cooperative practices and new Provide information and advice to its
ideas in business and management, and members about work-issues and concerns
allow lower income groups to expand their
ownership of wealth

Cooperatives and Trade Unions as Means of Promoting Self-help Towards

Economic Development
Cooperatives are self-help organizations presently utilized by the government as
more efficient tools for economic development. These are also business enterprises which
affiliates own, manage, and control following accepted democratic principles. Members are
not organized primarily for profit nor to serve other persons, but to address the needs of their
members. Memberships in cooperatives are voluntary and open to all those who need their
services. Members share economic benefits from unions in proportion to the individual
member's patronage of the business or enterprise.
Trade unions are always fighting for better wages by improving employees pay and
other benefits such as holiday entitlements.
Functions:

 Secure improvements in employees' working conditions, including hours of work,

health or safety at work, improving pensions, and industry injury benefits.
 Provide improved standards of living.
 Safeguard the interest of workers by encouraging firms to increase employee
participation in decision-making.
 Prevent employees from exploitation.

With trade union on a place, strikes can be avoided, thus resulting in stability and growth
of the firm. This promotes unity, spirit of self-reliance, and self-respect, and may lead to
economic development.

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 What’s More

Task 2:

Imagine a construction worker earning minimum wage with no additional benefits

from the employer, no security of tenure from his work, and can be terminated any time of
the day. ( Write your answer in your notebook.)
Question:
1. What can cooperatives and trade unions do to improve his condition?
2. If you were the employer, how would you adjust your job policies in order to suit the
needs of the employee?

What I Have Learned

Answer the question below in your notebook.

1. Are these non-state institutions beneficial to us? Why or why not?

What I Can Do

Direction: Write a letter to the President suggesting ways as to how to improve the situation
of Non-state institutions in the country.

Rubrics: Content 10 pts.

Format 5 pts.
Organization and language use 10 pts
Total: 25 pts.

Assessment
Direction: Read each item carefully. Write only the letter which corresponds to the correct
answer in your activity notebook.

1. What is known as the bank of all banks in the Philippines?

A. Bank of the Philippine Island C. Landbank
B. Central Bank of the Philippines D. Veterans Bank

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2. What organization is legally bound by a charter to conduct a certain type of business?
A. Corporation C. Trade Union
B. Cooperative D. None of the choices

3. Which of the following is not a non-state institution?

A. Bank C. Corporations
B. DepEd D. None of the choices

4. What does it mean when the corporation has unlimited life?

A. not ceasing to exist if a major stockholder die
B. the corporate form is the most effective for raising money
C. spreading business risks among many owners
D. None of the choices

5. Which of the following is not a function of a bank?

A. Serves as link between the source of funds, the depositor, the fund user, and
the borrower
B. Does not provide safe keeping place for money and valuables of individuals
C. Receive savings and deposits of their clients
D. All of the above

6. It is written applications to the government requesting permission to form a corporation?

A. Articles of incorporation C. Letter of Intent
B. Request for clearance D. None of the choices

7. In what category of banks does a private development bank belong?

A. Commercial banks C. Rural Banks
B. Thrift banks D. None of the choices

8. Which of the following is a primary reason why banks play significant roles in
the country’s economy?
A. They are the ones providing the needs of the people that the government cannot
provide.
B. They provide safe-keeping place for money and valuables of individuals.
C. They link in the transfer of money from the source to the borrower.
D. None of the choices

9. What type of cooperative procures and distribute commodities to members and non-
members?
A. Credit cooperative C. Consumer cooperative
B. Producer cooperative D. Marketing cooperative

10. What refers to a voluntary association of either employees, employer, or independent

workers to protect their interest and avoid maltreatment?
A. Cooperative C. Corporation
B. Trade unions D. None of the choices

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11. How is a cooperative and trade union similar?
A. Organized and formed by a group of people to protect their interest
B. Promote the common good among members
C. Voluntary in nature
D. All of the above

12. Every quarter of the year, the service cooperative is conducting a seminar about
specialized knowledge related to different fields of their members. Which function of
the cooperative is best described by the situation?
A. Provide maximum economic benefits to its members
B. Teach people efficient and effective ways of doing things in a cooperative manner
C. Propagate cooperative practices and new ideas in business and management
D. None of the choices

13. What is a voluntary organization of people who have agreed to pool their
resources together in other to undertake an economic plan?
A. Trade unions C. Bank
B. Cooperative D. Corporation

14. What does a credit cooperative want to promote among its members?
A. Procures and distributes commodities to members and non-members
B. Undertakes joint agricultural or industrial production
C. Promotes thriftiness among its affiliates, and creates funds to grant loans
for productive endeavor of members
D. Participates in the supply of production inputs to constituents, and markets
their products

15. Which is not a purpose of trade / labor union?

A. negotiate wages and working condition terms
B. doesn’t help in settling grievances
C. regulate relations between workers
D. All of the above

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 Additional Activities
Direction: Create a collage depicting the vital role of Non state institutions in our country.
Rubrics:

Answer Key

Try This! Task 1: Fill in the chart.

1. B 6. B 11. B 1. Banks and Corporations
2. B 7. A 12. D 2. Cooperatives and Trade Unions
3. A 8. A 13. B 3. Transnational Advocacy Groups
4. B 9. B 14. B 4. Development Agencies
5. A 10. C 15. C 5. International Organizations
Explore: Answers may vary. Task 2: Answers may vary. Reflections: Answers may vary.
Assessment:
1. B6. A11. D
2. A7. B12. B
3. B8. A13. B
4. A9. C14. C
5. B10. B15. B

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References

Alejandro-Gonzalez, Maria Carinnes A. (2016). DIWA Senior High School Series:

Understanding Culture, Society, and Politics Module. DIWA Learning Systems Inc.

https://link.quipper.com/en/organizations/5b758544397e4632b2000009/curricu
lum#curriculum

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For inquiries or feedback, please write or call:

Department of Education – Schools Division of Negros Oriental Kagawasan, Avenue, Daro

Tel #: (035) 225 2376 / 541 1117
Email Address: Website: lrmds.depednodis.net