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.