Cooperative in the Philippines- Raya, A.
Cooperative principles and practices-Pinote, M., Aparejado, S.
Cooperative values- Paglinawan F.
Organization and management of cooperatives- Espares, G.
Cooperative in the Philippines
Cooperatives have been seen for a long time as important economic actors in the Philippines. They are
well recognised in law; their promotion by a State agency was written into the constitution in 1987, and
they have their own up to date Cooperative Code, amended in 2008.
ICA members represent over 9,432
cooperatives in the country, with a
total number of memberships
of 7,647,800, and a total number of
226,400 employees.
Consumer cooperatives, producer
cooperatives, worker cooperatives
and multi-stakeholder
cooperatives are all present in
Philippines.
Its member organizations are
active in the several sectors,
including Credit, Banking,
Transport,
Agriculture, etc. The graphics
above provide more information
ICA members represent over 9,432 cooperatives in the country, with a total number of memberships of
7,647,800, and a total number of 226,400 employees. Consumer cooperatives, producer cooperatives,
worker cooperatives and multi-stakeholder cooperatives are all present in Philippines.
Its member organizations are active in the several sectors, including Credit, Banking, Transport,
Agriculture, etc. The graphics above provide more information.
Major factors contribute to the difficulties in institutionalizing cooperatives
•Failure to incentivize shareholders
•Power become centralized
•Wrong people in the wrong places
•Lack of market or community support
•Not planning for succession
COOPERATIVE PRINCIPLES AND PRACTICES
One of the ways cooperatives differ from other business structures is their adherence to cooperative
principles and values that reflect social, political, and business concerns. Cooperatives trace the roots of
these principles to the Rochdale pioneers, who established the first modern cooperative in Rochdale,
England in 1844. These principles have been refined, adapted, and reinterpreted over time. The seven
principles used by the International Cooperative Alliance today are generally accepted by cooperatives
worldwide.
The cooperative principles are guidelines by which cooperatives put their values into practice.
1.Open and Voluntary Membership
Membership in a cooperative is open to all people who can reasonably use its services and stand willing
to accept the responsibilities of membership, regardless of race, religion, gender, or economic
circumstances.
2. Democratic Member Control
Cooperatives are democratic organizations controlled by their members, who actively participate in
setting policies and making decisions. Representatives (directors/trustees) are elected among the
membership and are accountable to them. In primary cooperatives, members have equal voting rights
(one member, one vote); cooperatives at other levels are organized in a democratic manner.
3. Members’ Economic Participation
Members contribute equitably to, and democratically control, the capital of their cooperative. At least
part of that capital remains the common property of the cooperative. Members allocate surpluses for
any or all of the following purposes: developing the cooperative; setting up reserves; benefiting
members in proportion to their transactions with the cooperative; and supporting other activities
approved by the membership.
4. Autonomy and Independence
Cooperatives are autonomous, self-help organizations controlled by their members. If they enter into
agreements with other organizations, including governments, or raise capital from external sources, they
do so on terms that ensure democratic control as well as their unique identity.
5. Education, Training, and Information
Education and training for members, elected representatives (directors/trustees), CEOs, and employees
help them effectively contribute to the development of their cooperatives. Communications about the
nature and benefits of cooperatives, particularly with the general public and opinion leaders, help boost
cooperative understanding.
6. Cooperation Among Cooperatives
By working together through local, national, regional and international structures, cooperatives improve
services, bolster local economies, and deal more effectively with social and community needs.
7.Concern for Community
Cooperatives work for the sustainable development of their communities through policies supported by
the membership.
1.5 COOPERATIVE VALUES
The cooperative values serve as guidelines for all co-op organizations and their members. There
are six main cooperative values and these are values of self-help, self-responsibility, democracy, equality,
equity, and solidarity. Cooperative members believe in the ethical values of honesty, openness, social
responsibility, and caring for others.
Self-help: Co-ops are geared towards creating a community where every member
benefits equitably. To accomplish this ideal, members need to help themselves while also
helping each other.
Self-responsibility: Much of the cooperative ideology is based on the idea that each
individual member is individually responsible within the group. They should be responsible
and play their part on their own, without the need for external motivation or incentive.
Democracy: Democratic structure is crucial to running a successful cooperative. The
organization exists so that all members have control, and no one individual holds more
power than the others. Members choose representatives by way of voting, and each
individual has one vote per election.
Equality: Each member of a cooperative should benefit from the same rights, based on
their level of contribution.
Equity: Cooperative organizations should treat all members fairly, without any form of
discrimination. Equity is essential to creating a harmonious relationship among all members.
Solidarity: The members within a cooperative form a unified organization where all the
individuals support one another. Each organization also supports other cooperatives to form
a united network
need for external motivation or incentive.
ORGANIZATION AND MANAGEMENT OF COOPERATIVES
Cooperatives are organized to:
1. Improve bargaining power;
2. Reduce costs;
3. Obtain products or services otherwise unavailable;
4. Expand new and existing market opportunities;
5. Improve product or service quality; or
6. Increase income.
Forming a cooperative includes the legal, economic, and financial aspects of cooperative business.
Getting the help of a cooperative development specialist, an attorney, and an accountant will in increase
chances for success. A cooperative development specialist can help coordinate a new venture from
conception until the operation is running smoothly. Careful planning increases the chances of success.
