Consolidated data revealed that the Philippines registered 25,610 cooperatives as of December 31, 2015. Membership is about 14 million based on 2014 figures. Estimated to have generated more than half a million direct employment and about 1.9 million indirect employment different types of cooperatives with various business operations are dispersed across the different islands of the Philippines. Out of the above figures some cooperatives belong to the billionaire and millionaire’s club managed by officers and management staff that have unique strategies in running their businesses. In the Cordillera Administrative Region (CAR), about 896 cooperatives were registered but only 626 of these are classified as operating or compliant. About 500 cooperatives submitted audited financial statements as of December 31, 2016 that was used in the categorization of cooperatives.
Looking into the records and visits to these cooperatives indicated some best practices employed. While these practices might have been reported or published, our intention is to inform our readers on how these cooperatives increase their assets, membership and net surpluses. Noted practices of cooperatives in CAR include:
1) Conduct of Strategic Planning and Assessment. Most billionaire and millionaire cooperatives prepare development plans (annual, medium and long-term) and allow the members to comment, enhance and approve during Regular or Special General Assembly Meetings. Included in the topics under strategic planning is the preparation or review of Vision, Mission, Goals and Objectives. Assessment of what went well, what went wrong and what needs to be done often guide facilitators to evaluate the performance of the organization based on the strategic plans.
2) Conduct of Regular/Special General Assembly Meeting. Observations reveal that cooperatives that periodically conduct general assembly meetings with clearly stated agenda often increase in membership, assets and net surplus. Well informed members on the plans/ programs and achievements of the organization increase their support and patronage to the cooperative operations. Members’ involvement in the planning, implementation and evaluation creates sense of ownership especially when they feel they are part of the group. Interaction and promotion of closer relationship among members, staff and officers favors the growth and development of the cooperative.
3) Business Diversification/Expansion. Aggressive cooperatives with innovations to diversify businesses attained tremendous changes in their financial and non-financial transactions especially those that were presented and approved by the GA. Having different businesses allow cooperatives to use their resources to serve the needs of members.
4) Conduct of Pre-Membership Education Seminar. The conduct of regular trainings to orient prospective members before joining encourages them to appreciate the concept of cooperatives. It provides ideas and information related to the history of the business operations together with the provisions of the Articles of Cooperation; by-laws and policies of the cooperative. Having well-informed members ensure support and patronage of the business enterprise. Lesser number of complaints allows management to use time for productive endeavors given enlightened membership that can follow rules and regulations.
(to be continued on March 12)