Cooperative Management in the Philippines

          Organizing a cooperative can both be complex and simple.

·         It requires, first of all an understanding of the basic needs of the perspectives cooperative members.

·         It demands patience from the co-organizer who must take the cooperative goal and objectives.

·         Its visions and long term goals a real part of the members lives.

          The Cooperative Code of the Philippines (RA 6938) has devised very clean cut steps for the coop-organizer and members.

          This question and answer form should make organizing cooperatives a little more understandable to the cooperative organizer:

What Is A Cooperative?

          A cooperative is a duly registered association of persons with a common bond of interest, who have voluntarily joined together to achieve a lawful common social or economic end, making equitable to contribution to the capital required and accepting a fair share of the risks and benefits of the undertaking in accordance with universally accepted cooperative principle.

          By forming a cooperative you pool money, human resources and talent to build capital and work together to produce more goods and raise incomes.

          Through cooperatives, you can look for the other sources of loans at low interest rates of borrowing form informal lenders or users. The cooperative can also be a mechanism for marketing your produce.

What are the Principles of Cooperativism?

          The cooperative principles were reformulated by the International Cooperative Alliance in Vienna in 1966 during its 23^rd  Congress.

1.      The first principle is anchored on voluntarism. This means that each member of a cooperative becomes a member voluntarily and is not restricted by social, political or religious discrimination. In fact anyone who meets the qualifications set by a cooperative’s bylaws can be a member if he willingly shoulders their responsibility.

2.      The second principle is democracy. Coops are democratic organizations with officers and managers elected or appointed in a manner agreed on by members. Each member, no matter the amount of his share, is entitled to one vote.

3.      The third principle is the limitation of share capital interest. In the context of cooperativism, interest on a member share capital is limited so that no person- especially those with money- can have an overwhelming equity in the coop. This prevents the domination of the coop’s affairs by wealthy members at the expense of poorer members and the organization as whole.

4.      The fourth principle, essentially a manifestation of the third principle, revolves on the sharing all location of cooperatives surplus or savings. At bottom, it mandates distribution of surplus equitably so that no member, gains at the expense of another. Surplus are, by decision of the member, used for developing the coop’s business interests, providing common services to members in proportion to their transactions with the cooperatives.

5.      The fifth principle, makes provision for the education and training of cooperatives members, officers and employees, and of the general public in the principles and techniques of cooperation

6.      The sixth principle harps on the promotion of cooperation between cooperatives at local, national and international levels.

7.      The seventh principle is the concern for community by working for its sustainable development through policies approved by the cooperative members.

What Are The Kinds Of Cooperative?

• Credit Cooperative- promotes thrift and savings among its members and creates funds in order to grant loans for productivity
• Consumer Cooperative- the primary purpose is to procure and distribute commodities to member and non-members;
• Producers Cooperative – undertakes joint production whether agricultural or industrial;
• Service Cooperative- engages in medical, and dental care, hospitalization, transportation, insurance, housing , labor, electric light and power, communication and other services; and
• Multi- Purpose Cooperative – combines two (2) or more of the business activities of these different types of cooperatives

According to membership and territory, the following are the categories of cooperatives:

In terms of membership:

• Primary -The members of which are natural persons of legal age;
• Secondary- The members of which are primaries;
• Tertiary – The member of which are secondaries upward to one or more apex organizations. Cooperatives whose members are cooperatives are called federations or unions.

In terms of territory:

·         Cooperatives are categorized according to areas of operation which may not be coincide with the political subdivisions of the country.