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DEVELOPMENT COOPERATIVE
B. CODE OF ETHICS
INTRODUCTION
The officials (elected directors, committee members and appointed officers) and management
staff shall fulfill its responsibilities and render services in a manner to promote the organization
and not for own personal benefit. The officials and management staff of PPAEDCO shall avoid
potential conflicts of interest and personal gains. PPAEDCO will promote and protect the
integrity and reputation of those responsible for the administration and operation of all the affairs
of the organization. Elected/Appointed officers and management staff of PPAEDCO should at all
times accept responsibility and accountability for decisions, for the foreseeable consequences
of actions and inaction, and for setting example to members. PPAEDCO will ensure that
appropriate mechanisms are adopted within the organization to establish delineation of
responsibilities and accountabilities. Elected/Appointed officers and management staff of
PPAEDCO should be worthy of trust, keep promises, fulfill commitments and abide by the spirit
as well as the letter of membership agreement.
Article 1
INDIVIDUAL COOPERATIVE MEMBERS
Section 1. Standard of Personal Conduct. In any transaction, a cooperative member is expected
to:
a.) Be respectful and observe proper decorum to cooperative’s organizational hierarchy;
b.) Be receptive to constructive criticism by developing and maintaining emotional
maturity and stability;
c.) Be actively involved in cooperative affairs;
d.) Refrain from:
d.1 giving and receiving gifts to obtain or in exchange for favor;
d.2 engaging in activities inimical to the interest of the cooperative; and,
d.3 using the cooperative for personal aggrandizement.
Article 2
BOARD OF DIRECTORS
Section 1. Director’s Undertaking. The Board of Directors, collectively in the performance of its
duties and responsibilities as contained in the Articles of Cooperation and By-laws and as
mandated by the laws of the Philippines, should take into consideration the welfare and well-
being of the general membership and its employees as well as the advancement of the
cooperative in the formulation of the resolutions and the policies. As such, it should exercise its
function with due care and prudence like a good father of a family and must be thoroughly
knowledgeable on the management and operation of the cooperative.
1. Adopt bold assertive policies that can withstand the rigors of public scrutiny and a
policy of transparency for the welfare of the general membership;
2. Seek new and better ways in making the cooperative responsive, viable and
progressive;
3. Coordinate with the committees and direct management to affect harmonious
business operation;
4. Be supportive to the regional and national apex organizations of the cooperative;
5. Respect the powers of the General Manager duly defined in the Articles of
Cooperation and By-laws of the cooperative; and,
6. Implement the PPAEDCO’s Code of Conduct and Ethical Standards for Members,
Officers, Officials and Employees.
a.) Be engaged in the business which directly competes with the business of the
cooperative; and,
b.) Be an officer of another cooperative whose business is in conflict with the line of
business of cooperative, except in secondary organizations like federation.
Article 3
COMMITTEES
Section 1. In the performance of their duties and responsibilities, as provided in the Articles of
Cooperation and By-Laws and RA No. 9520, the Committees should:
1. Formulate their sound policies subject to the approval of the General Assembly;
2. Prepare annual program of activities in their area of concern to be approved by the
Board and to be integrated with the cooperative’s annual plans and budget; and,
3. Actively pursue, specifically the Education and Training Committee, the development
of its members, promote the understanding of the affairs of the cooperative and foster
harmonious relationship and cooperation.
Article 4
OFFICIALS
Section 1. The officials which include the General Manager, Accountant and Treasurer, in the
performance of their sworn and prescribed duties and responsibilities as stated in the Articles of
Cooperation and By-Laws, should be honest, sincere, trustworthy, dedicated and capable. They
are expected to be updated on the day-to- day affairs of the cooperative movement. To be more
effective in their performance, they should refrain from any business activity which is in conflict
with that of cooperative and must at all times not use the cooperative for their grandiose and
capricious personal interest.
Article 5
EMPLOYEES
Section 1. The employees must be of a good moral character, honest, dedicated and committed
to the cooperative and to their tasks behaving as model employees. Therefore, they have to
give the best possible services to the members and officers of the cooperative. Among others,
they must:
1. Observe cooperative’s existing policies and procedures and common cooperative’s
rules and regulations;
2. Subject themselves to management policies and should not be beholden to any
member of the Board and inhibit themselves from campaigning during election; and,
3. Take the initiative to develop themselves and undergo training, seminars and other
manner of education to improve their competence and perspective.
Article 6
PREFERENTIAL FINANCIAL PRACTICES
Section 2. No official or employee shall direct the allocation of PPAEDCO funds, purchase,
invest, contracts or whatever, to second parties with the direct or indirect objective of obtaining
preferred personal, financial or other considerations in return for such direction of business.
Section 3. No official or employee shall enter into a contract on behalf of the organization;
unless the transaction is approved by the Board of Directors, appropriate invoices and the
transaction is legally binding and is not in conflict with the standards of professional conducts.
Article 7
QUESTIONABLE PRACTICES AND
PROCEDURES
Section 1. The following activities are identified as an illegal or not in keeping with sound
business and financial practices, questionable as to ethical procedures and are therefore
prohibited. Directors, committee members and management staff will be suspended and later
discharged if the individual is proven guilty of/is responsible for any of the following:
(a) Falsifying information to obtain position, compensation or for other purpose;
(b) Dishonesty, fraud or embezzlement;
(c) Theft of the cooperative’s property, equipment or the personal property of fellow
employees;
(d) Consuming an intoxicating drug/alcohol or being intoxicated by drugs/alcohol or
being intoxicated by drugs/alcohol while conducting credit union business.
(e) Willful disobedience of instructions or directives issued by the Board or Audit
Committee;
(f) Using profane or abusive language;
(g) Willful neglect of duties;
(h) Acts of lasciviousness;
(i) Willful damage of credit union property or equipment;
(j) Conducting personal financial transactions with a member which is in conflict with the
line of business of cooperative; and,
(k) Any other cases similar to the above.
Article 8
NEPOTISM
Article 9
SANCTIONS
Section 1. Infraction(s) of the PPAEDCO’s Code of Conduct and Ethical Standards for
Members, Officers, Officials and Employees shall be governed by the following:
Section 1. Governing Body. The Board of Directors shall have jurisdiction over its members,
officers, officials and employees.
Section 3. Penalties. The following penalties shall be imposed for violation of the Code of
Conduct and Ethical Standards:
Article 10
LIABILITY INDEMNIFICATION
Section 1. No Directors, committee members or management staff members shall be liable for
any loss or misfortune which may occur in the execution of the duties of his/her respective
office, unless such loss shall occur through his/her failure to exercise the power, and to
discharge the duties of his/her office honestly, in good faith and in the best interest of the
PPAEDCO in accordance with the degree of care, diligence and skill is expected.
Article 11
MISCELLANEOUS PROVISIONS
Section 1. Promulgation of Rules and Regulations. In the event that any term or any provision of
the “PPAEDCO's Code of Conduct and Ethical Standards of Members, Officers, Officials and
Employees” be wanting in definition of terms as well as rules and regulations in connection with
the implementation and enforcement of the same, the Board, in consultation with the different
Committees and Management, shall define, promulgate the needed definition, rules and
regulations. In case of doubt in interpretation, it shall always be resolved in favor of the
cooperative.
Section 2. Oath of Office. All Officers, Officials and Employees of the cooperative are required
to take their “Oath of Office”, in a prescribed form (Annex _____), before they discharge the
function of their offices.
Section 3. The Cooperative Pledge. All cooperators and cooperating members as well as the
members subsequently accepted by the Board are required to manifest their commitment to the
cooperative by reciting the standard format of the Cooperative Pledge. The said Cooperative
Pledge shall be displayed in most conspicuous place/s of the cooperative office. It shall likewise
be displayed and recited in cooperative gatherings like general assemblies, meetings, training,
sessions and other social gatherings.