Cooperative Code of the Philippines - General Concepts and Principles

Summary

In this video, the speaker introduces the Cooperative Code of the Philippines, based on Republic Act 9520 (2008). It outlines the fundamental principles of cooperatives, such as voluntary membership, democratic control, economic participation, autonomy, and community concern. The speaker also explores key terms and definitions from the cooperative code, including membership, general assembly, articles of cooperation, and the role of the Cooperative Development Authority. The video is the first chapter in a series aimed at explaining the Philippine cooperative framework, designed to help viewers understand how cooperatives operate and their legal and organizational structures.

Takeaways

• 😀 Voluntary and open membership is a key principle of cooperatives, meaning they are open to all persons who are willing to accept the responsibilities of membership without discrimination.
• 😀 Cooperatives operate democratically, with members having equal voting rights, ensuring that policies and decisions are made by active participation of all members.
• 😀 Members contribute equitably to the capital of the cooperative and receive a limited return on their investment. Surpluses are used for the cooperative's development or to benefit members.
• 😀 Cooperatives are autonomous, self-help organizations controlled by their members, even when they enter agreements with external organizations or raise capital from outside sources.
• 😀 Education, training, and information are vital for cooperative members, managers, and employees to effectively contribute to the cooperative’s growth and operations.
• 😀 Cooperation among cooperatives is encouraged, as working together at local, national, and international levels strengthens the cooperative movement.
• 😀 Concern for the community is central to cooperatives, which aim to contribute to the sustainable development of their communities through policies approved by their members.
• 😀 A 'member' in a cooperative can be an individual (natural person) or a legal entity (juridical person) such as another cooperative, corporation, or partnership.
• 😀 The General Assembly is the ultimate governing body of a cooperative, consisting of all members who exercise their rights and responsibilities according to the cooperative's bylaws.
• 😀 The Cooperative Development Authority (CDA) is the governing agency responsible for the registration, regulation, and oversight of cooperatives in the Philippines.
• 😀 Social and performance audits are essential for evaluating a cooperative’s impact, ensuring accountability, and improving efficiency within the cooperative’s management and operations.

Q & A

What is the Philippine Cooperative Code of 2008?

The Philippine Cooperative Code of 2008 (Republic Act No. 9520) provides the legal framework for the organization, operation, and governance of cooperatives in the Philippines, outlining the rules for their establishment and management.

What are the general principles of a cooperative under the Philippine Cooperative Code?

The general principles include voluntary and open membership, democratic member control, member economic participation, autonomy and independence, education, training and information, cooperation among cooperatives, and concern for the community.

What is meant by 'voluntary and open membership' in a cooperative?

'Voluntary and open membership' means that cooperatives are open to all persons who can use their services and are willing to accept the responsibilities of membership, regardless of gender, social, racial, cultural, or religious background.

How does 'democratic member control' work in cooperatives?

In cooperatives, members actively participate in decision-making and control, with equal voting rights. Each member has one vote, regardless of the amount of capital contributed, ensuring democratic governance.

What is the purpose of 'member economic participation' in a cooperative?

Member economic participation ensures that members contribute equitably to the capital of the cooperative, control it democratically, and receive a share of the surplus based on their patronage of the cooperative’s services.

What does 'autonomy and independence' mean for cooperatives?

'Autonomy and independence' means that cooperatives maintain their self-help status and control over their operations, even when entering into agreements or raising capital from external sources.

Why is 'education, training, and information' important in cooperatives?

Education, training, and information ensure that members, elected representatives, managers, and employees are well-equipped to contribute effectively and efficiently to the cooperative’s development and operations.

What does 'cooperation among cooperatives' mean?

Cooperation among cooperatives involves working together through various local, national, regional, and international structures to strengthen the cooperative movement and more effectively serve their members.

What is the role of cooperatives in the community?

Cooperatives focus on the sustainable development of their communities by implementing policies that benefit both the cooperative and its broader societal environment.

What is a 'social audit' in the context of cooperatives?

A social audit is a process by which cooperatives assess their social impact and ethical performance, evaluating how well they meet their mission, goals, and social responsibilities.