Elective 3 Cooperatives

• A cooperative is an autonomous association of people united voluntarily to meet their common economic, social and cultural needs and aspiration through a jointly owned and democratically controlled business.
• Cooperative societies are voluntary associations started with the aim of service to members.
• Cooperative marketing consist of two words ‘cooperative or cooperation’ and ‘marketing’.
• It is also the marketing ‘for the farmers’ and ‘by the farmers’ that aim at eliminating the chain of functionaries operating between the farmers and the ultimate consumers and thus securing maximum price for the farmer’s produce.
• An autonomous and duly registered association of persons, with a common bond of interest, who have voluntarily joined together to achieve their social, economic and cultural needs and aspirations by making equitable contributions to the capital required, patronizing their products and services and accepting a fair share of risks and benefits of the undertaking in accordance with the universally accepted cooperative principles
• Objectives of a Cooperative:

  Provide goods
• Promote among members equitable distribution of net surplus through maximum utilization of economies of scale, cost-sharing, and risk-sharing
• Provide optimum social and economic benefits to its members
• Teach efficient ways of doing things in a cooperative manner
• Propagate cooperative practices and new ideas in business and management
• Allow lower income and less privileged groups to increase their ownership in the wealth of the nation
• Cooperate with the government, other cooperatives, and people-oriented organizations to further the attainment of any of the foregoing objectives
• The lead government agency mandated by virtue of Republic Act No. 9520 (Philippine Cooperative Code of 2008) to promote the viability and growth of Philippine cooperatives. It is the only government agency that registers cooperatives.

  Cooperative Development Authority
• “The Congress shall create an

  agency to promote the viability

  and growth of cooperatives as

  instruments for equity, social

  justice and economic

  development.”

  Constitutional Mandate

  (Section 15, Article 12 of the 1987 Philippine Constitution)
• Enabling Laws

  • REPUBLIC ACT 6939 (March 10, 1990)

  • EXECUTIVE ORDER NO. 95, Series of 1993

  • EXECUTIVE ORDER NO. 332, Series of …
• Republic Act No. 6939 - An act providing for the organization and regulation of rural banks and agricultural credit institutions, amending certain provisions of Presidential Decree No. 1405, otherwise known as “the Rural Banks Act of 1977”, as amended, and for other purposes.
• Executive Order No. 332 – Providing guidelines on the implementation of the policy of privatization and deregulation of state owned enterprises (SOEs).
• Cooperative Principles

  1. Voluntary and Open Membership
  2. Democratic Member Control
  3. Member Economic Participation
  4. Autonomy and Independence
  5. Education, Training, and Information
  6. Cooperation among cooperatives
  7. Concern for community
• • cooperatives are voluntary organizations

  • open to all persons

  • able to use their services

  • willing to accept the responsibilities of membership

  Voluntary and Open Membership
• Cooperatives are

  • democratic organizations

  • controlled by their members .

  • directors or officers are accountable to the membership.

  •members have equal voting rights

  Democratic Member Control
• •members contribute equitably to the capital of their cooperative. They shall receive limited compensation or limited interest, if any, on capital subscribed and

  paid up as a condition of membership.

  Member Economic Participation
• •cooperatives are autonomous,

  • self-help organizations controlled by their members.

  • ensure democratic control of their members

  •maintain their cooperative autonomy

  Autonomy and Independence
• cooperatives shall provide education and training for their members, elected and appointed representatives, managers, and employees.

  Education, Training, and Information
• Cooperatives serve their members most effectively and strengthen the cooperative movement by working together through local, national, regional and international structures.

  Cooperation among Cooperatives
• cooperatives work for the sustainable development of their communities through policies approved by their members.

  Concern for Community
• Types of cooperatives:

  • Credit Cooperative
  • Consumers Cooperative
  • Producers Cooperative
  • Marketing Cooperative
  • Service Cooperative
  • Multi-purpose Cooperative
  • Agrarian Reform Cooperative
  • Cooperative Bank
  • Dairy Cooperative
  • Electric Cooperative
  • Education Cooperative
  • Financial Service Cooperative
  • Fishermen Cooperative
  • Health Services Cooperative
  • Housing Cooperative
  • Transport Cooperative
  • Water Service Cooperative
  • Workers Cooperative
  • Other types as determined by the Authority
• PURPOSE OF COOPERATIVE:

  (1) To encourage thrift and savings mobilization among the members;

  (2) To generate funds and extend credit to the members for productive and provident purposes;

  (3) To encourage among members systematic production and marketing;

  (4) To provide goods and services and other requirements to the members;

  (5) To develop expertise and skills among its members;
• PURPOSE OF COOPERATIVE

  (6) To lands and provide acquire benefits for the housing members;

  (7) To insure against losses of the members;

  (8) To promote and advance the economic, social and educational status of the members;

  (9) To establish, own, lease or operate cooperative banks, cooperative wholesale and retail complexes, insurance and agricultural/industrial processing enterprises, and public markets;

  (10) To coordinate and facilitate the activities of cooperatives;
• PURPOSE OF COOPERATIVE

  (11) To advocate for the cause of the cooperative movement;

  (12) To ensure the viability of cooperatives through the

  utilization of new technologies;

  (13) To encourage and promote self- help or self-employment as an engine for economic growth and poverty alleviation; and

  (14) To undertake any and all other activities for the effective and efficient implementation of the provisions of this Code.
• CDA’s Vision

  An effective and efficient regulatory agency working towards the development of viable, sustainable, socially responsive and globally competitive cooperatives.
• CDA’s Mission

  To ensure the safe and sound operations of cooperatives.
• CDA’s Reasons

  • Chief implementer of the Cooperative Code (Lead Government agency on cooperatives development) and the sole registering government agency of all types of co-ops

  • Facilitates coordination of various cooperative programs and activities of government agencies, non-government organizations and cooperatives.
• General Concepts:

  “ A cooperative is an : - autonomous

  • duly registered association of persons with common bond of interest who have voluntarily joined together to achieve their social, economic, and cultural needs and aspirations
  • making equitable distributions
  • patronizing their products and services and
  • accepting a fair share of the risks and benefits of the undertaking in accordance with universally accepted cooperatives principles.”
• Basic Differences With Other Business Model
• Objectives of Cooperative:

  1. Provide goods and services to its members to  enable them to attain increased income, savings,  investments, productivity, and purchasing power,  and promote among themselves equitable  distribution of net surplus through maximum  utilization of economies of scale, cost-sharing and  risk-sharing;
  2. Provide optimum social and economic benefits to  its members;
  3. Teach them efficient ways of doing things in a  cooperative manner;
• Objective of Cooperative

  
  

  4. Propagate cooperative practices and new ideas in  business and management.

  
  

  5. Allow the lower income and less privileged groups  to increase their ownership in the wealth of the  nation; and

  
  

  6.Cooperate with the government, other  cooperatives and people- oriented organizations to  further the attainment of any of the foregoing  objectives.
• to promote  the viability and growth of  Philippine cooperatives.

  Cooperative Development Authority
• CDA is the lead government  agency mandated by the government


  Republic Act No. 9520
• the sole registering  government agency of all types of co-ops


  Chief implementer of the Cooperative Code 
• ADDRESS

  Every cooperative shall have an official postal  address to which all notices and communications  shall be sent. Such address and every change  thereof shall be registered with the Authority.