1. GENERAL CONCEPTS AND PRINCIPLES OF COOPERATIVES
Coop 002 – Cooperative Management
MARILYN P. GAOAT
Instructor

2. Review: Definition of Cooperative
R.A 9520, Article 3 “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 the risk and benefits of the undertaking in accordance with universally accepted principles.”

3. Characteristics of Cooperatives
Cooperatives are service oriented
Cooperatives are community oriented
Cooperatives are people oriented
Cooperatives are owned, managed, and patronized by their members
Cooperatives are business enterprises with social responsibility
Cooperatives develop best through the principles of subsidiarity
Cooperatives serve best when they satisfy the real felt needs of the members and teach members to become self-reliant
Cooperatives develop best from bottom to top
The development of cooperatives is enhanced through multi-sectoral approach

4. Characteristics of Cooperatives
Cooperatives are service oriented
Cooperatives are not for profit and charity but for service
Service to others is expected to be given primary importance, while self-interest should be given only a secondary priority.

5. Characteristics of Cooperatives
Cooperatives are community oriented
It helps improve the quality of members’ life as well as the community in which they operate

6. Characteristics of Cooperatives
Cooperatives are people oriented
serve as tools of change for total human development, for total quality of life of the members, economic, social, political, cultural and spiritual

7. Characteristics of Cooperatives
Cooperatives are owned, managed, and patronized by their members
Sense of ownership is one of the keys to the success of cooperatives

8. Characteristics of Cooperatives
Cooperatives are business enterprises with social responsibility
Net Surplus is distributed to members as capital contributors and as consumers

9. Characteristics of Cooperatives
Cooperatives develop best through the principles of subsidiarity
Mutual-help (joint and united action)
“If you want something done, do it yourself”
“Maximum Strength Through Perfect Unity”

10. Characteristics of Cooperatives
Cooperatives serve best when they satisfy the real felt needs of the members and teach members to become self-reliant
It is a basis for patronage

11. Characteristics of Cooperatives
Cooperatives develop best from bottom to top
Primary level
Secondary level
Tertiary Level
Federations (same business) or Union

12. Characteristics of Cooperatives
The development of cooperatives is enhanced through multi-sectoral approach
Networking and linkages with government and non-government sectors

13. Core Values of Cooperation
Democracy
Solidarity
Self Help & Self Responsibility
Equality & Equity
Source: ICA Core Values of Cooperation

14. DEMOCRACY
we give our members a say in the way we run our businesses

15. EQUITY we carry out our business in a way that is fair and unbiased
Equity is a never ending challenge since this refers to how members are treated within the cooperative. Members should be treated equitably in how they are rewarded, normally through their patronage dividends, allocations to capital reserve in their name or reductions in charges.

16. EQUALITY
no matter how much money a member invests in their share account, they still have one vote
means that the basic unit of the cooperative is the member who is either a human being or grouping of human beings. Members have rights of participation, a right to be informed, a right to be heard, and a right to be involved in making decisions. Members should associate in a way that is as equal as possible, one that is a continuing challenge for all cooperatives.

17. SELF-RESPONSIBILITY
we take responsibility for, and answer to our actions
Self-responsibility means that members assume responsibility for their cooperative, for its establishment and its continuing vitality. Members are responsible for ensuring that their cooperative remains independent from other public and private organizations.

18. SELF-HELP we help people to help themselves
is based on the belief that all people can and should strive to control their own destiny. Full individual development can take place only in association with others. Through joint action and mutual responsibility, one can achieve more, by increasing one’s collective influence in the market and before governments.

19. “United we stand; Divided we fall”
SOLIDARITY
we share interests and common purposes with our members and other co-operatives.
Solidarity ensures that cooperative action is not just a disguised form of limited self interest, that cooperative is more than just an association of members, but affirmation of collective strength and mutual responsibility.
“United we stand; Divided we fall”

20. COOPERATIVE PRINCIPLES

21. Open and Voluntary Membership
membership is open to everyone
Filipino citizen
18 years of age
Meets the common bond of membership

22. Democratic Member Control
all members have an equal voice in making policies and electing representatives
One man, one vote

23. Member Economic Participation
all profits are controlled democratically by members and for their benefit
Proportionate based on capital contribution and patronage

24. Autonomy and Independence
cooperatives are always independent, even when they enter into agreements with the Government and other organizations

25. Education, Training and Information
cooperatives educate and develop their members as well as their staff

26. Cooperation Among Cooperatives
cooperatives work together with other cooperatives to strengthen the cooperative movement as a whole
Primary cooperative needs to be affiliated to a secondary cooperative; and secondary to tertiary cooperative

27. Concern for Community
cooperatives also work to improve and develop the community, both locally and internationally.