III.

MANAGEMENT ASPECTS

Establishing a cooperative as well as its corresponding contents of leadership and membership would be the subject of thought of some interested individuals in a community, thus they need to be guided and helped. Structures like this will play a vital important role to promote economic and social order. This system will then say the organized way of planning the production of the mouthwash made of guava, placing on the market the products produce and managing the resources.

TYPE OF BUSINESS ORGANIZATION

A cooperative is an autonomous association of persons who voluntary cooperate for their mutual social, economic, and cultural benefit. They have a bond of interest that joins them together to achieve a lawful common ends. These are typically based on the cooperative values of self!help, self! responsibility, democracy and e"uality, e"uity and solidarity . E"uitable contributions must be made to come up with the capital re"uired as well as the accepting a fair share of the risks and benefits of the undertaking in accordance with universally accepted cooperative principles. The purpose of a cooperative is not to make a profit for itself, but to improve each member#s life situation. This is a mi$ of self! help and mutual aid that had made it an international force of good. %owever, members of cooperatives do make a profit by selling their product and&or service to customers who are not cooperative members.

NATURE AND CHARACTER OF COOPERATIVES

As an association of people and as business enterprises, 'ooperatives

can be distinguished from other organizations by their nature and character. They can be balanced by the interests of the community or may be classified as worker, consumer, producer, purchasing, housing cooperatives and many other types of which are created to label their ownership structure. 'o! operatives are a fle$ible business model. They can be set up in different ways, using different legal structures, depending on what works for the members.

The primary objective of every cooperative is to provide goods and services to its members that would enable them to attain increased income and savings, investments, productivity, and purchasing power and also to promote among them e"uitable distribution of net surplus through ma$imum utilization of the economies of scale, cost!sharing and risk!sharing but not to conduct the affairs of the cooperative for charitable purposes because 'o!operatives want to trade successfully as they are businesses, not charities, after all.

'ooperative shall provide ma$imum economic benefits to its members, nurture them efficient ways of doing things in a cooperative manner, and propagate and enhance cooperative practices and new ideas in business and management and allow the lower income groups to increase their ownership in the wealth of this nation. (embers join cooperative because they need their services. 'ooperatives however in serving the members, do not act as a charitable organization. The members are aware that the benefits they derive from their association come from their contributions and are the result of their mutual inclination to help one another, derived from the "uote that )'ooperatives are not for profit not for charity but for service*. (embers can often do better by working together and sharing the profit is a way to keep it fair and make it worthwhile. And also economic benefits are distributed proportionally to each member+s level of participation in the cooperative, for instance, by a dividend on sales or purchases, rather than according

to capital invested.

TYPE OF BUSINESS ACTIVITY

The cooperative established will be a producer#s cooperative type. 'ooperative 'ode of the ,hilippines defines ,roducers 'ooperative as one that undertakes joint product whether agricultural or industrial, voluntary association of at least -. individuals&persons for the purpose of mutually assisting one another in the procurement of raw materials through skill, physical or chemical process into finished products and in the marketing of the same. The co!op members are the independent producers, and they man cooperate in many possible ways. They may buy the inputs, e"uipment, and insurance, hire managers and sales people, market and advertise together, or operate storage or processing facilities or a distribution network. The broad objectives of producer#s cooperative are to increase the income and purchasing power of its members and to establish and promote cooperation as a techni"ue for improving the social and economic status of the members.