Detailed Discussion Content
1. Definition of Cooperatives
International Co-operative Alliance (ICA) Definition:
“A cooperative is 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.”
Philippine Legal Definition (RA 9520):
“A cooperative is duly registered with the Cooperative Development Authority (CDA),
organized by at least fifteen members, with a common bond of interest, who voluntarily
join together to achieve a lawful common social or economic end.”
Key Elements:
o Voluntary membership
o Joint ownership
o Democratic control (one member, one vote)
o Member-centered service rather than profit maximization
2. Definition of Cooperative Management
The process of planning, organizing, leading, and controlling cooperative activities to
achieve the shared goals of members.
Unique from corporate management because decisions are based on member welfare,
not on investor profit.
Includes ensuring that cooperative principles are followed while keeping the organization
financially sustainable.
1. Planning
Definition: Deciding in advance what the cooperative will do, how it will do it, and when
it will be done.
In the Cooperative Context:
o Plans are not just made by top management; they involve input from members
through assemblies and consultations.
o Planning covers business operations (e.g., selling farm produce), social projects
(e.g., livelihood training), and financial strategies (e.g., savings and credit
programs).
Example: A farmers’ cooperative creating a yearly production and marketing plan based
on members’ expected harvests and market demand.
2. Organizing
Definition: Arranging resources, people, and tasks in a way that enables the cooperative
to achieve its objectives efficiently.
In the Cooperative Context:
o Assigning roles to the Board of Directors, committees, management staff, and
members.
o Setting up systems for record-keeping, inventory, and reporting.
o Establishing policies for membership, capital build-up, and service delivery.
Example: A credit cooperative forming a loan committee, audit committee, and
education committee to handle specialized functions.
3. Leading
Definition: Influencing and motivating members and employees to work toward the
cooperative’s goals.
In the Cooperative Context:
o Leadership is participatory and emphasizes democratic values — every
member’s voice matters.
o Leaders act as role models in upholding cooperative principles and maintaining
transparency.
o Communication is two-way: management updates members, and members give
feedback.
Example: A cooperative chairperson inspiring members to increase their capital share by
showing how it will fund a new income-generating project.
4. Controlling
Definition: Monitoring and evaluating activities to ensure they are on track with the
cooperative’s goals and correcting any deviations.
In the Cooperative Context:
o Regularly checking if activities align with the cooperative’s development plan and
budget.
o Conducting internal audits and complying with CDA reportorial requirements.
o Using performance indicators like member satisfaction, financial surplus, and
social impact.
Example: A multipurpose cooperative reviewing quarterly sales reports and adjusting its
marketing strategy if income falls short of targets.
3. Importance of Cooperatives
Economic Role: Provide affordable goods/services, generate jobs, and help members
access credit or markets.
Social Role: Promote solidarity, education, and empowerment among members.
Philippine Context: Cooperatives are recognized as partners in nation-building under the
1987 Constitution (Art. XII, Sec. 15).
4. Historical Development of Cooperatives in the Philippines
Pre-colonial Era: Bayanihan and damayan traditions reflect cooperative spirit.
American Period: Formal cooperatives introduced through the Rural Credit Law of
1915.
Post-WWII: Cooperatives used to rebuild local economies.
Modern Era: RA 6938 (1990) → Amended by RA 9520 (2008) to strengthen regulation
and support.
5. Legal Basis – RA 9520
Title: Philippine Cooperative Code of 2008
Scope: All types of cooperatives (credit, consumer, multipurpose, agricultural, etc.)
Objectives:
o Encourage self-help and people empowerment
o Promote equitable distribution of wealth
o Uphold cooperative principles
6. Cooperatives vs. Other Business Organizations
Aspect Cooperative Corporation Sole Proprietorship
Ownership Members Shareholders Single owner
Voting One member, one vote Based on shares owned Sole decision
Purpose Service to members Profit for investors Profit for owner
Profit Sharing Patronage refund to members Dividends to shareholders Owner keeps all
Teaching-Learning Activities
1. Lecture-Discussion – Use slides with images of local cooperatives.
2. Class Activity – “Coop Spotting” – Students identify and share names of cooperatives
in their barangay/city and their services.
3. Video Viewing – Short CDA documentary on cooperative success stories.
4. Group Comparison Task – Small groups create a chart comparing a cooperative with a
corporation or sari-sari store.
Assessment
Quiz (10 Items) – Covering definitions, history, and RA 9520 basics.
Reflection Paper (200 words) – “Why are cooperatives important to community development?”
Group Output – Table comparing business types, submitted at end of class.
Sample Quiz with Answer Key
1. A cooperative is owned and controlled by its members. (True)
2. Which law governs cooperatives in the Philippines? (RA 9520)
3. One member, one vote is a principle of democratic control. (True)
4. Pre-colonial Filipinos practiced cooperation through bayanihan. (True)
5. RA 9520 was enacted in 2008. (True)
6. Cooperatives aim to maximize investor profit. (False)
7. The regulatory agency for cooperatives is CDA. (True)
8. Cooperatives existed only after American colonization. (False)
9. Which is NOT a type of cooperative? (Private investment cooperative)
10. The main purpose of a cooperative is service to members. (True)