COOPERATIVE

A cooperative is an
CONCEPTS
• 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 contributions to the capital required
• 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.”

RA9520 Chapter 1 Article 3

 Characteristics of a Co-operative

• Common need, common bond of interest

• Member’s commitment to help each other, succeed in coop
enterprise
• Leadership values
• Service-oriented, people’s welfare to make members aware
to save & be thrifty
• Self-reliant
Unique and different from other business enterprise

• Member-user
• One-member-one
• Returns given back to members
• Patronize the services
• Equal opportunity
• Lower interest, prices
• Help members, help themselves
• render the greatest possible benefit to its membersnot to make
the largest possible profit
 COOPERATIVE VALUES

SELF HELP
SELF HONESTY
REPONSIBILITY

EQUITY AND CARING

SOLIDARITY FOR
OTHERS
SOCIAL
RESPONSIBILITY

DEMOCRACY
OPENNESS
 COOPERATIVE VALUES
• OPENNESS - Nobody’s perfect, and we won’t hide it
when we’re not
• HONESTY - We have integrity about what we do and
the way we do it
• SOCIAL RESPONSIBILITY - We encourage people to be
answerable for their own community and work
together to improve it
• CARING FOR OTHERS - We regularly fund charities and
local community groups with the profits of our
businesses
 COOPERATIVE VALUES
• DEMOCRACY - We give each member an equal chance to
run the business of the co-op
• EQUALITY - No matter how much money a member invests
in his/her share account he/she is entitled to just ONE vote
• EQUITY - We carry our business in a way that is fair and
un-biased
• SOLIDARITY - We share interests and common purposes
with our members & other co-ops
 7 COOPERATIVE PRINCPLE
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 VOLUNTARY AND OPEN MEMBERSHIP
• Cooperatives are voluntary organizations,
open to all persons able to use their services
and willing to accept the responsibilities of
membership, without gender, social, racial,
political or religious discrimination.
 DEMOCRATIC MEMBER CONTROL
• Cooperatives are democratic organizations
controlled by their members, who actively
participate in setting their policies and making
decisions. Men and women serving as elected
representatives are accountable to the
membership. In primary cooperatives members
have equal voting rights (one member, one vote).
 MEMBER ECONOMIC PARTICPATION
• Members contribute equitably to, and
democratically control the capital of their
cooperative. At least part of that capital is
usually the common property of the
cooperative.
 AUTONOMY AND INDEPENDENCE
• Cooperatives are autonomous, self-help
organizations controlled by their members.
• If they enter into agreements with other
organizations, including the government, or
raise capital from external sources, they do so on
terms that ensure democratic control by their
members and maintain their cooperative
autonomy.
EDUCATION ,TRAINING AND INFORMATION
• Cooperatives provide education and training
for their members, elected officers, manager,
and employees so they can contribute
effectively to its development and growth.
• They inform the general public - particularly
young people and opinion leaders - about the
nature and benefits of cooperation
 COOPERATION AMONG COOPERATIVES
• Cooperatives serve their members most
effectively and strengthen the cooperative
movement by working
• together through local, national, regional and
international structures
 CONCERN FOR COMMUNITY
• cooperatives work for the sustainable
development of Their communities Through
policies Approved by their members.
 TYPES OF COOPERATIVE
• Credit Cooperative
• Consumers Cooperative;
• Producers
• Marketing
• Service
• Multi-purpose Cooperative;
• Agrarian Reform Cooperative
 TYPES OF COOPERATIVE
• Cooperative Bank
• Dairy Cooperative
• Education Cooperative
• Electric Cooperative
• Financial Service Cooperative
• Fishermen Cooperative
• Health Services Cooperative
• Housing Cooperative
• Transport Cooperative
• Water Service Cooperative
• Workers Cooperative
• Agriculture Cooperative
• Other types of cooperatives as may be
determined by the Authority
 ORGANIZATIONAL STRUCTURE
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 GENERAL ASSEMBLY
• The highest policy-making body of the co-op.
• Voting in primary cooperatives is strictly
• ONE - MEMBER, ONE – VOTE. No proxies allowed except
for representative assembly.
•  Quorum shall consist of at least 25% of all the members
entitled to vote. However in case of coop banks, quorum
shall be as provided in Article 99 of the Code; In electric
coops, 5% of all members entitled to vote unless otherwise
provided in the by-laws
 GENERAL ASSEMBLY
• REGULAR ASSEMBLY MEETING
held annually by the general assembly on a date
fixed in the by-laws, or if not, on any date within
90 days after the close of each fiscal year.
• Provided, that notice of regular meetings shall be
sent in writing, by posting or publication, or thru
other electronic means to all members of record.
 GENERAL ASSEMBLY
• SPECIAL ASSEMBLY MEETING whenever
necessary, a special meeting of the general
assembly may be called at any time by a majority
vote of the board of directors or at least 10% of
the total members with voting right in the cases
specified in the by-laws.
• At least one week notice must be sent to all
members who are entitled to vote.
 OFFICERS OF COOPERATIVE
• Members of the Board of Directors
• General Manager
• Secretary Treasurer
• Members of the committees created by the GA
• Other positions as maybe provided in the
by-laws
 OFFICERS OF COOPERATIVE
BOARD OF DIRECTORS
• Composed of not less than five (5) more than fifteen (15)
members elected by the general assembly for term fixed
in the bylaws but not exceeding a term of two (2) years.
• The BOD are responsible for strategic planning, direction-
setting, policy- formulation and by resolution, exercise all
powers of the cooperative that are not reserved for the
general assembly
 OFFICERS OF COOPERATIVE
• Review the annual plan and budget and
recommend for the approval of the GA
• Evaluate the capability/qualification and
recommend for the approval of the GA the
engagement of the services of an External Auditor
• Appoint and terminate based on just cause
the General Manager
 OFFICERS OF COOPERATIVE
• Formulate and review the vision, mission and
goals of the cooperative
• Establish performance evaluation system at all
levels
• Review and approve the organizational and
operational structures
 OFFICERS OF COOPERATIVE
GENERAL MANAGER
• Represent the cooperative in any agreement,
contract, business dealings, and in any other
official business transaction as may be
authorized by the BOD
•  Ensure compliance with all administrative
and other requirements of regulatory bodies
 OFFICERS OF COOPERATIVE
• Represent the cooperative in any agreement,
contract, business dealings, and in any other
official business transaction as may be
authorized by the BOD
• Ensure compliance with all administrative and
other requirements of regulatory bodies
 COOPERATIVE ELEMENTS
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 MEMBERSHIP

The membership
• support the co-op by Participating in the
Capital build-up programs
• Depositing Borrowing wisely
• Paying obligations promptly
• Participating in co-op activities
 LEADERSHIP
• The coop has competent leaders in terms of:
• ATTITUDE- commitment, honesty, integrity and the
sincere desire to make this world a better place to
live in for everyone;
• SKILLS - communicating skills, relationship skills,
skills in financial analysis that can contribute to the
coop; 2ND LINERS – development of other leaders
along the way
 MANAGEMENT STAFF
• The coop has competent and diligent staff
with;
•The right and adequate training for the job;
•Just and adequate compensation;
•Opportunities for advancement
 SYSTEM & PROCIDURE
The following systems are installed and followed;
• Accounting system;
• Internal control system;
• Management Information System
• The officers and members meet often (at least once
a month). The officers use a problem solving
approach whenever issues and concerns are raised.
 POLICIES
Characteristics of ‘modernized’ policy
• Strategic –looks ahead and contributes to long term
goals
• Outcome focused –aims to deliver desired changes in
the real world
• Inclusive –is fair & takes account of the interests of all
• Robust –stands the test of time and works in practice
from the start
 POLICIES
Why put policies in writing?
• Communication
· So members, leaders and employees can read &
understand them
• Continuity
· To provide for management continuity
• Education
To educate people about the coop · To train new
leaders & employees
 POLICIES
• Why put policies in writing?
•Governance ·
To maintain control and describe the method and
systems of management
•Compliance
To comply with bylaws, laws and government
regulations ·
To comply with best management practice standards
 FINANCING
• The internal capital is more than 50% of the
total capital. The coop is able to give a
reasonable return on investment to its
members, and is able to pay the cost of
borrowed capital (both the principal and the
interest).
 SUPPORT SYSTEM

• There is a continuing education program.

• A program of pre-membership education
process to potential members
• An on-going information/ communication
process thru which the coop maintains the
support and cooperation of members, e.g.
ownership mtgs., newsletter, fora, etc.
 SERVICES
• The members are satisfied with the services
given by the co-op, the coop officers
additional services, at least once during the
last three years.
Management of Cooperatives
 PLANNING

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 PLANNING…
• The planning process will set goals and defining
the actions necessary to achieve those goals. To
achieve that, they will involve into three steps:
• A) deciding which goals the organization
should pursue;
• B)deciding what courses of action to adopt to
attain those goals; and
• C)deciding how to allocate organizational
resources.
 WHAT ARE THE COMMON PLANS WE SHOULD HAVE
IN COOPS

1. Strategic Plan – long term plan (usually 5

years or more) that represents the major
activities and programs towards the coop’s
vision.
• Where are we now? (Our Baseline)
• Where do we want to go? (Our Target)
• How do we get there? (Our Strategy)
2. Annual Plan and Budget – a yearly
description and identification of coop’s
activities and programs for the year including
its costs. It must be anchored on the strategic
plan.
 PLANS…
3. Monthly Work plans – detailed activities,
actions and strategies per Key Result Area
(KRA) done and evaluated monthly.
4. Other Plans: Risk Management Plan, Disaster
Plan, Succession Plan, Gender Equality Plan,
etc.
 ORGANIZING

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 ORGANIZING
• The organizing process will determine:
a) the tasks to be done;
b) who will do them; and
c) how those tasks will be managed and coordinated.

At this stage managers establish the structure of working

relationships between organization members that best
achieves organizational goals. It involves grouping people
into departments according to the tasks they perform.
 ORGANIZING
• Then the managers need to lay out lines of
authority and responsibility between group and
people. The outcome of the process is an
organizational structure, the formal system of
reporting relationships.
• The various coop’s policies (credit and collection,
internal control, membership policy manual, CBU
policies, etc.) are done and developed further.
 .
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 STAFFING
• Its the process of acquiring, deploying, and retaining
a workforce of sufficient quantity and quality to
create positive impacts on the organization’s
effectiveness.
• Coops must have a Human Resource Policy that
includes policies from hiring to firing/retiring.
• Putting people at the right position, giving them the
right salary and must deliver the required output.
 LEADING/ DIRECTING
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 LEADING/ DIRECTING
• The leading will manage the capacity the members of
work groups toward the accomplishment of
organizational goals.
• leaders determine direction, articulate a vision, and
energize employees so that they can play a part in
achieving goals. It requires a number of skill sets
including understanding individual or group behavior
dynamics, the ability to motivate employees, be
affective communicators, able to envision future and
share that vision and 3C’s Leadership Model.
 3CS OF MANAGEMENT
• 1. Challenge – present a challenge that will test
their knowledge, skills, egos and loyalty all towards
the benefit of the organization and stakeholders.
• State a Challenging Vision, Demand the
Impossible, Ask Challenging Questions, Create a
Culture of Continuous Improvement, Benchmark
the Best and Argue with Success
 3CS OF MANAGEMENT
2. Confidence - a major responsibility of a manager is
to build confidence and motivate his or her
employees so that they will believe in their ability
to reach their objectives.
• Expand People's Self-Image, Keep Ownership
Where It Belongs, Empower Your People,
Recognize Good or Improved Performance and
Drive Out Fear
 3CS OF MANAGEMENT
• 3. Coaching is the process of advising people
in a way that facilitates their success. It may
take various forms, from training to offering a
broader perspective. Coaching can help
employees to better understand how their
efforts fit into the larger strategy, thereby
allowing them to make better decisions.
 3CS.. COACHING
• Find the Right Balance, Make People Think for
Themselves, Show People What Good
Performance Looks Like, Be a Facilitator and
Give Feedback
 MARKETING
• Marketing is a form of communication
between you and your customers with the
goal of selling your product or service to them.
Communicating the value of your product or
service is a key aspect of marketing.
5 PS OF MARKETING
 MARKETING
• The Five Ps of Marketing: Product, Place, Promotion, Price,
and People.
• If you're pouring money into marketing but nothing's
happening, you need to evaluate your marketing mix.
• Product. Your coop should solve an urgent need or pain
for the customer. Your product needs the right features
• Place. Location or place matters. Often coop businesses
pay for prime locations so they can have the needed foot
traffic. You want to be located on a highly coveted
corridor, in a location that provides you easy access to the
target customer.
 MARKETING
• Promotion. Without proper promotion to attract your target
customer, you won’t grow your revenue. Good promotion
starts with a budget and marketing plan.
• Price. When pricing your product you must know four things:
your cost, what the competition is charging, the standard
mark-up or profit margin in your industry, and the value to
the customer. People. Profile, needs, wants and requirements
of your members and members to be. Is there a fit between
what your member wants to the products and services you
have? Are these people (members) willing to pay the price?
 CONTROLLING

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 CONTROLLING
• The last process of management is controlling. It will
monitor the performance of the organization and the
progress in implementing strategic and operational plans.
They will identify the deviations between planned actual
actions. Then taking corrective action, so that it will
ensure the organization is moving toward the
achievement of its goals. This involves designing
appropriate measurement and information and control
systems.
REPORTS REQUIRED FOR
COOPERATIVE
 REQUIRED REGULAR REPORTS
• The following reports shall be submitted to the
Authority:
1.Cooperative Annual Progress Report (CAPR)
2.Audited Financial Statement
3.Socio Audit Report
4.Performance Report
5.List of Officers and Trainings undertaken/completed
 FILLING
• All registered cooperatives shall file with the
Authority a copy of the required reports either
through personal, registered mail, courier or
electronic means, within 120 days from the
end of every calendar year.
 AS A BUSINESS
• They follow all business norms like:
• Compliance with all business requirements
such as but not limited to business permits;
registration with BIR; social legislation and
labor laws;
• Adherence to local laws; Healthy competition;
Open trade;
 AS A BUSINESS
• They follow all business norms like:
• Selling at market price
• Avoid destructive competition among coops
• Adequate capitalization
• Adherence to business governance
 AS A BUSINESS
• Constant expansion 
• Quality Standardized Goods
• Minimize Expenditures
• Comply with basic requirements of a business
enterprise.
 AS A BUSINESS
• Constant expansion
• Quality Standardized Goods
• Minimize Expenditures
• Comply with basic requirements of a business
enterprise.
 AS A BUSINESS
1. BIR REGISTRATION  Articles of Cooperation and
By-laws  Certificate of Registration from CDA
2. Tax Identification Number (TIN)
3. Book of Account - yearly, on or before the last
working day of December
2 Columnar, Cash Receipt,Cash Disbursement,
Ledger, Journal
 AS A BUSINESS
4. Certificate of Tax Exemption
• Certified true copy of Articles of Cooperation,
By-laws and
• Certificate of Registration
• Application Letter
• BIR Registration
• TIN of member or cedula