THE COOPERATIVE CONCEPT AND PRINCIPLES Flashcards
1
Q
What are the Nature and Character of Cooperatives
A
COOPERATIVES are:
- service oriented
- community oriented.
- people oriented
- Owned, Managed, and Patronized by their Members
- business enterprises
- develop best through self-help and mutual help
- serve best when they answer the real and felt needs of the members
- develop best from bottom to top
- The development of cooperatives is enhanced through a multi-sectoral approach
2
Q
In this type of business, failure to appreciate and to disregard their true nature and character is to deviate from the cooperative principles and ideals and to loss sight of the ultimate objective of the cooperative movement.
A
Cooperatives
3
Q
What is an association of people and as business enterprises distinguished from other organizations by their nature and character
A
Cooperatives
4
Q
Cooperatives as Defined by __________________
An autonomous association of persons united voluntarily to meet their common economic, social, and cultural needs and aspirations through a jointly-owned and democratically-controlled enterprise.
A
International Cooperative Alliance [ICA]
5
Q
What is the title of lesson 2?
A
Nature & Character of Cooperatives and as distinguished with other Business Enterprises
6
Q
___________’s definition emphasizes among other things that a business enterprise that wishes to be called and to operate as a cooperative needs to be registered with the government agencies.
A
RA 9520
7
Q
The Cooperative Code of ________define cooperatives under __________ as a;
A cooperative is a duly registered association of persons, with a common bond of interest, who have voluntarily joined together to achieve a lawful common 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 risks and benefits of the undertaking in accordance with universally accepted cooperative principles.
A
Cooperative Code of 2008 (RA 9520) define cooperatives under Article 3
8
Q
Cooperatives Defined under ________ that means, a duly registered association of persons, with a common bond of interest, who have voluntarily joined together to achieve a lawful common social or economic end, making equitable contributions to the capital required and accepting a fair share of the risks and benefits of the undertaking in accordance with universally cooperative principles.
A
RA 6938
9
Q
What is the title of Unit 1?
A
THE COOPERATIVE CONCEPT AND PRINCIPLES
9
Q
What is the title of Lesson 1?
A
The Cooperative Identity
10
Q
In this type of Nature & Character of Cooperatives and as distinguished with other Business Enterprises, Cooperative are organized to serve their members by providing goods and services they need at costs.
A
Cooperatives are are service oriented
11
Q
organized to serve their members by providing goods and services they need at costs.
A
Cooperatives
11
Q
The members are aware that the benefits they derive from the cooperative come from their contributions and is the result of their mutual desire to help one another.
A
Cooperatives are are service oriented
12
Q
Members join the cooperative and contribute capital in order to receive the needed services.
A
Cooperatives are are service oriented
12
Q
Cooperatives, however, in serving the members, do not act as charitable organizations.
A
Cooperatives are are service oriented
13
Q
What is the The cooperative slogan:
A
“Cooperative are not for profit, not for charity but for SERVICE.”
13
Q
By the very nature of their activities, cooperatives strengthen the economic & social base of the communities in which they operate.
A
Cooperatives are community oriented
13
Q
Cooperatives, therefore, enhance the people welfare by helping increase the productivity of their members and that of the communities in which they are located.
A
Cooperatives are community oriented
13
Q
Cooperative works for the welfare of their members but at the same time integrate themselves into the life of the community in particular and that of the nation in general.
A
Cooperatives are community oriented
14
Q
Cooperatives, are not merely economic instruments concerned with giving dividends and related economic and financial returns.
A
Cooperatives are people oriented
15
Q
Cooperatives are instruments of change for total human development.
A
Cooperatives are people oriented
16
Q
This means that the coop works for the total development of the human being in all aspect of life – economic, social, cultural, political [governance] & spiritual.
A
Cooperatives are people oriented
17
Q
Who writes the goal of cooperatives
A
G. Fauquet
17
Q
What is the goal of cooperatives
A
to make men – men with sense of both individual and joint responsibility – so that they may rise individually to a full personal life and collectively to a full social life.”
17
If a cooperative is organized & operated solely from borrowed capital, it violates the principle of self-help and loses much of its autonomous character.
Cooperatives are Owned, Managed, and Patronized by their Members.
18
The goal of cooperatives, writes G. Fauquet, “is to make men – men with sense of both individual and joint responsibility – so that they may rise individually to a full personal life and collectively to a full social life.”
Cooperatives are people oriented
19
Cooperatives are member-owned, member-controlled, and member used.
Cooperatives are Owned, Managed, and Patronized by their Members.
19
Members sense of ownership, is necessary in order that the members may have full authority to manage and control their cooperative.
Cooperatives are Owned, Managed, and Patronized by their Members.
20
In certain cases, a limited patronage by non-members may be allowed mainly for reasons of business viability and service to community.
Cooperatives are Owned, Managed, and Patronized by their Members.
20
Cooperatives, if they are to play a meaningful economic role in , our community life, it must serve & perform as efficiently & effectively like any other financial & business organization operating in the country today.
COOPERATIVES are business enterprises.
20
Cooperatives must depend on the patronage of their members and not from the non-members.
Cooperatives are Owned, Managed, and Patronized by their Members.
20
Cooperatives business is real business.
COOPERATIVES are business enterprises.
21
Cooperatives must be operated viably and provide a sizable amount of revenues & earn savings in order to sustain & maintain the services needed by their members
COOPERATIVES are business enterprises.
21
This is not to say that they should not be assisted but any financial or technical assistance, must not stifle [hindi masakal] but stimulate initiative, self-help and self-reliance. On this matter the principle of subsidiarity also applies --- that before soliciting or asking for help or aids from outside, self-determination and self-capability should be first considered.
COOPERATIVES develop best through self-help and mutual help
22
Patronage of the cooperative goods & services cannot be maintained without good governance and better business performances.
COOPERATIVES are business enterprises.
22
The role of government & non-government organizations in the development of cooperatives should be one of assistance and not of dominance.
COOPERATIVES develop best through self-help and mutual help
22
Cooperatives as Distinguish with other Business Enterprises
(a) numbers of members required
(b) the nature of membership liabilities
22
On the part of the cooperatives being assisted, they should do their part by seeing to it that the objective of assistance given are achieved – that they grow stronger rather than become dependent upon such help.
COOPERATIVES develop best through self-help and mutual help
23
Who is the father of cooperativism
Robert Owen
23
The government & non-government organizations should not in any manner interfere in the purely internal affairs of the cooperative.
COOPERATIVES develop best through self-help and mutual help
23
Organizationally their development shall be from the primary to the level to the secondary and then to the tertiary up to the apex.
COOPERATIVES develop best from bottom to top.
23
Robert Owen, the father of cooperativism, says, “If you want something done, do it yourself.” This philosophy of Robert Owen has been responsible for the success of many cooperatives all over the world – and it is considered as the best alternative for the poor in any country to unite and help themselves in their depressed condition.
COOPERATIVES develop best through self-help and mutual help
23
This approach involves the participation of all sectors from the planning stage to implementation, evaluation and monitoring of all activities.
The development of cooperatives is enhanced through a multi-sectoral approach.
24
What does the father of cooperativism say and has been responsible for the success of many cooperatives all over the world – and it is considered as the best alternative for the poor in any country to unite and help themselves in their depressed condition.
“If you want something done, do it yourself."
24
Whose responsible for the development of cooperatives should be one of assistance and not of dominance should not in any manner interfere in the purely internal affairs of the cooperative.
The government & non-government organizations
24
Cooperatives operated cannot expect patronage from the members wherein the goods or services given do not answer their needs.
COOPERATIVES serve best when they answer the real and felt needs of the members.
25
When the needs are real and are not felt by the members, the assisting agency should make the real needs be felt by the members.
COOPERATIVES serve best when they answer the real and felt needs of the members.
25
It is important that proper approaches & techniques are employed in order to ensure that the real needs of the members are identified and recognized before any cooperative is organized.
COOPERATIVES serve best when they answer the real and felt needs of the members.
25
Being a mass-based organizations, cooperatives develop_________________________.
COOPERATIVES develop best from bottom to top.
25
Having in mind the specific roles of each sector: the government, non-government, and the cooperative sector – must play a _____________ can ensure that all aspects of the development process are considered.
The development of cooperatives is enhanced through a multi-sectoral approach.
25
What is the title of Lesson 3?
The Cooperative Values, Principles and Practices
25
Geographically, cooperative should be develop from the barangays to the municipal, city, provincial, regional and to the national level.
COOPERATIVES develop best from bottom to top.
26
It is said here that Self-Help, democracy, equality, equity and solidarity are the values that should govern cooperatives as socially-responsible and people-oriented organizations and economic enterprises.
Organizational values
26
Together with providing economic benefits, cooperatives aim at bringing about a equality of life that upholds human dignity, inclusiveness and allness.
Cooperative Values
26
The International Cooperative Alliance (ICA) Statement of Cooperative Identity declared the following cooperative values:
Organizational values
Ethical Values
26
Who made the Statement of Cooperative Identity, that declared the following cooperative values?
International Cooperative Alliance (ICA)
26
are enjoined to consistently adhere to the values and principles and practices of cooperation.
Cooperatives
26
What value does the individual members whose personal ethics form the kind of organizational culture a cooperative shall promote are expected to be living examples of values of honesty, openness, social responsibility and caring for others.
Ethical Values
26
adhered by cooperatives worldwide, were drawn from the rich historical practices of cooperatives that started as early as 18th century.
Principles of Cooperatives or Cooperative Principles
27
The purpose of which are to:
[a] serve as guide in decision making,
[b] long-term and short-term planning, business operations and internal and external relationship of the cooperatives with other cooperatives locally and internationally.
Principles of Cooperatives or Cooperative Principles
27
What are the Principles of Cooperatives
1st Principles: Voluntary and Open Membership
2nd Principles: Member Democratic Control
3rd Principles: Member Economic Participation
4th Principles: Autonomy & Independence
5th Principles: Education, Training & Information
6th Principles: Cooperation Among Cooperatives
7th Principles: Concern for Community
27
What is the purpose of Principles of Cooperatives
[a] serve as guide in decision making,
[b] long-term and short-term business operations planning
27
In this principle, it is said that Cooperatives are democratic organizations controlled by their members, who actively participate in setting their policies and making decisions.
2nd Principles: Member Democratic Control
27
In this principle, it is said that Men and women serving as elected representatives are accountable to the membership.
2nd Principles: Member Democratic Control
27
In this principle, it is said that Cooperative are voluntary organizations, open to all persons able to use their services and are willing to accept the responsibilities of membership, without gender, social, racial, political or religious discrimination.
1st Principles: Voluntary and Open Membership
27
In this principle, it is said that At least part of that capital is usually the common property of the cooperative.
3rd Principles: Member Economic Participation
28
In this principle, it is said that In primary cooperative, members have equal voting rights (one member, one vote) and cooperatives at other levels are also organized in a democratic manner.
2nd Principles: Member Democratic Control
28
In this principle, it is said that Members contribute equitably to, and democratically control, the capital of their cooperative.
3rd Principles: Member Economic Participation
28
In this principle, it is said that Members usually received limited compensation, if any, on capital subscribed as a condition of membership.
3rd Principles: Member Economic Participation
29
In this principle, it is said that Members allocate surpluses for any or all of the following purposes: developing their cooperative, possibly by setting up reserves, part of which at least would be indivisible; benefiting members in proportion to their transactions with the cooperative; and supporting other activities approved by the membership.
3rd Principles: Member Economic Participation
30
In this principle, it is said that Cooperatives are ________, self-help organizations controlled by their members.
Aiutonomy and Independence
31
In this principle, it is said that If they enter into agreements with other organizations, including governments, or raise capital from external sources, they do so on terms that ensure democratic control by their members and maintain their cooperative ________.
4th Principles: Autonomy & Independence
32
In this principle, it is said that Cooperatives provide education and training for their members, elected representatives, managers, and employees so they can contribute effectively to the development of their cooperatives.
5th Principles: Education, Training & Information
33
In this principle, it is said that They inform the general public – particularly young people and opinion leaders – about the nature and benefits of cooperation.
5th Principles: Education, Training & Information
33
In this principle, it is said that Cooperatives serve their members most effectively and strengthen the cooperative movement by working together through local, national, regional, and international structures.
6th Principles: Cooperation Among Cooperatives
33
In this principle, it is said that The cooperative should work for the sustainable development of their communities through policies approved by the members.
7th Principles: Concern for Community
33
It is what Cooperatives follow certain operational guidelines.
Cooperative Business Practices
34
are practical response to local needs.
Cooperative practices
35
Some are adopted from standard international practices, others are from local innovations, all are aimed at perfecting the cooperative operations.
Cooperative practices
36
The capital structure of any organization highly influences the success and failure of cooperatives.
Capital Formation
37
What are the cooperative practices?
- Capital Formation
- Cash Trading
- Sell Quality Goods at Prevailing Market Price
- Promote of Constant Expansion of Membership, Capital and Services
37
Fast cooperative failures points that Capital should really be provided by the members.
Capital Formation
37
When money of the members form the capital of the association, there would be better cooperation to ensure its success.
Capital Formation
38
Cooperative have savings programs which cannot be withdrawn, this failures points that Capital should really be provided by the members.
Capital Formation
38
When money of the members form the capital of the association, there would be better cooperation to ensure its success.
Capital Formation
38
Cooperative have savings programs which cannot be withdrawn, this failures points that Capital should really be provided by the members.
Capital Formation
39
Many cooperatives societies have failed because they allowed purchase of goods on credit.
Cash Trading
39
When funds are limited, cash is needed to purchase goods for sale to the members.
Cash Trading
39
Advantages of Cash Trading:
(a) Minimizes the unnecessary purchase and could buys the goods at one time in bulk;
(b) Reduces paper works;
(c) Eliminates favoritism and discriminations;
(d) Promotes stability and growth of the cooperative;
(e) Avoid problems in credit collection;
(f) Obtain goods at lower destructive competition.
40
Cooperatives as an association of persons must strive to offer goods to its members of highest quality – unadulterated, correct weight and measures, and price must be sold within the prevailing market price in the community.
Sell Quality Goods at Prevailing Market Price
40
Business growth are always tied up with the volume of transactions it is being offered to its client. Cooperatives as a business enterprises must make sure that the number of customer- members are sufficient enough to be able to absorb the costs of operations and still incur savings for it growth.
Promote of Constant Expansion of Membership, Capital and Services
41
Economy of scales contributes in the reduction of the costs of running the business, thus, savings can be realized which are eventually for the benefits of its members.
Promote of Constant Expansion of Membership, Capital and Services
42
Expanding the capital base of the cooperatives brings about stability and success.
Promote of Constant Expansion of Membership, Capital and Services
42
The amount of available operating capital at any given time will enable the organization to immediately acquire goods in sizeable volume which eventually redound to the reduction of its purchasing costs and discounts offered by suppliers.
Promote of Constant Expansion of Membership, Capital and Services
42
A good business sense, the member-customers always look for availability of the goods or merchandises needed by them at any given time of their scheduled buying or marketing.
Promote of Constant Expansion of Membership, Capital and Services
42
The trust and confidence of the member-customer-owner as strengthened as they can see that the capital they contributed are made visible in the form of inventories or stock displayed in the cooperative store or mart.
Promote of Constant Expansion of Membership, Capital and Services
43
Business growth are always tied up with the volume of transactions it is being offered to its client.
Promote of Constant Expansion of Membership, Capital and Services
43
what is the title of lesson 4?
The Different Types of Cooperatives
44
what are the original types of Cooperatives
Credit Cooperatives
Consumers Cooperatives
Marketing Cooperatives
Service Cooperatives
Producers Cooperatives
45
What is the new Cooperative Code?
Cooperative Code of the Philippines Republic Act No. 9520 in 2008
45
What is the Law of Cooperatives
Cooperative Laws Republic Act No. 6938
45
In what Article and Republic Act defines the different types of cooperatives.
Article 23, of the Republic Act No. 9520
46
Types of Cooperative under Article 23, of the Republic Act No. 9520
Credit Cooperative
Cooperative Bank
Insurance Cooperative
Financial Service Cooperative
Service Cooperative
Consumers Cooperative
Producers Cooperative
Marketing Cooperative
Multi-Purpose Cooperative
Advocacy Cooperative
Agrarian Reform Cooperative
Education Cooperative
Dairy Cooperative
Electric Cooperative
Water Service Cooperative
Fishermen Cooperative
Health Services Cooperative
Housing Cooperative
Transport Cooperative
Workers Cooperative
46
It is one organized by workers, including the self-employed, who are at the same time the members and owners of the enterprise.
Workers Cooperative
47
Its principal purpose is to provide employment and business opportunities to its members and manage it in accordance with cooperative principles
Workers Cooperative
48
is one organized to own, operate and manage water systems for the provision and distribution of potable water for its members and their households.
Water Service Cooperative
48
one which includes land and sea transportation, limited to small vessels, as defined or classified under the Philippine Maritime Laws, organized under the provisions of this Code.
Transport Cooperative
48
is one engaged in the business of insuring life and property of cooperatives and their members.
Insurance Cooperative
48
is one organized to assist or provide access to housing for the benefit of its members who actively participate in the savings program for housing. It is co-owned and controlled by its members.
Housing Cooperative
49
s one organized for the primary purpose of providing medical, dental and other health services
Health Services Cooperative
49
is one organized by marginalized fishermen in localities whose products are marketed either as fresh or processed products.
Fishermen Cooperative
50
is one organized for the primary purpose of engaging in savings and credit services and other financial services
Financial Service Cooperative
51
is one organized for the primary purpose of undertaking power generation, utilizing renewable energy sources, including hybrid systems, acquisition and operation of sub-transmission or distribution to its household members.
Electric Cooperative
52
is one organized for the primary purpose of owning and operating licensed educational institutions, notwithstanding the provisions of Republic act No. 9155, otherwise known as the Governance of Basic Education Act of 2001;
Education Cooperative
52
is one whose members are engaged in the production fresh milk which may be processed and/or marketed as dairy products
Dairy Cooperative
53
It is formed and operated by its members to undertake the production and processing of raw materials or goods produced by its members into finished or processed products for sale by the cooperative to its members and non-members.
Producers Cooperative
53
is one organized for the primary purpose of providing a wide range of financial services to cooperatives and their members
Cooperative Bank
53
is one organized by marginal farmers majority of which are agrarian reform beneficiaries for the purpose of developing an appropriate system of land tenure, land development, land consolidation or land management in areas covered by agrarian reform.
Agrarian Reform Cooperative
54
is one which combines two (2) or more of the business activities of these different types of cooperatives.
Multi-Purpose Cooperative
54
is a primary cooperative which promotes and advocates cooperativism among its members and the public through socially-oriented projects.
Advocacy Cooperative
55
is one which engages in medical and dental care, hospitalization, transportation, insurance, housing, labor, electric light and power, communication, professional and other services.
Service Cooperative
55
Education and training, research and communication, and other similar activities to reach out to its intended beneficiaries;
Advocacy Cooperative
56
is one which engages in the supply of production inputs to members and markets their products.
Marketing Cooperative
57
It is one that undertakes joint production whether agricultural or industrial.
Producers Cooperative
57
It is so unique that it reflects the participation of the members as an owner – collectively perform the function as a final authority in deciding the affairs of the association.
structure of the cooperative organization
58
Any end product or its derivative arising from the raw materials produced by its members, sold in the name and for the account of the cooperative, shall be deemed a product of the cooperative and its members;
Producers Cooperative
58
is one the primary purpose of which is to procure and distribute commodities to members and non-members.
Consumers Cooperative
58
is one that promotes and undertakes savings and lending services among its members. It generates a common pool of funds in order to provide financial assistance and other related financial services to its members for productive and provident purposes
Credit Cooperative
59
This power are explicitly provided under the Cooperative Code of the Philippines of 2008, its implementing rules and regulations, circulars issued by the regulatory agency – the Cooperative Development Authority that over see the operational affairs of the cooperative as well as its by its internal governing rules—the by-laws.
structure of the cooperative organization
60
Cooperative Development Authority issued a MEMORANDUM CIRCULAR NO. 2011‐07 Series of 2011 dated February 22, 2011 requiring all primary cooperatives regardless of its types shall have to comply with the Model Organizational Structure of Primary Cooperatives.
structure of the cooperative organization
61
What Memorandum Circular Number has Cooperative Development Authority issued requiring all primary cooperatives regardless of its types shall have to comply with the Model Organizational Structure of Primary Cooperatives.
MEMORANDUM CIRCULAR NO. 2011‐07 Series of 2011 dated February 22, 2011
62
The MEMORANDUM CIRCULAR NO. 2011‐07 Series of 2011 dated on
February 22, 2011
63
serves as Ex-Officio Chairman of the Education Committee
Vice-Chiarman
64
may also serve as Head of the Administrative Unit/Department
Board Secretary
65
For a micro size primary cooperatives, the _______________ also serves as the Cashier of the cooperatives.
Treasurer
66
The composition of the hired Management Staff which is headed by a______________________
Chief Executive Officer or General Manager or Manager
67
This persom may also be serving as Unit or Department Head of the Finance
Treasurer
68
The_________________ of any organization highly influences the success and failure of cooperatives.
capital structure
