Philippine E-Journals

A Cooperative’s Governance and Response to Rising Expectations

David N. Almarez

 

Abstract:

The author holds a doctorate in Management from Capitol University, Cagayan de Oro City. He is a faculty member of the Political Science Department of the College of Arts and Social Sciences and is the Acting Head of the Human Resource Management Division of MSU-Iligan Institute of Technology.

This is a descriptive case study. It is an evaluation of the corporate governance and corporate citizenship of the MSU-IIT Multipurpose Cooperative in relation to its responses to the needs of its members and the community. Data were gathered through surveys, interviews, observations, focus group discussions, and content analysis of documents and were treated both quantitatively and qualitatively. From 38 members and P86.20 initial asset, the MSU-IIT MPC grew to more than 30,000 members, more than P400 million in assets, and 103 employees in 32 years. By helping liberate members from usurers and by improving their economic plight, the MSU-IIT MPC provided a model for a self-help initiative for peace building and development.

The contribution of the cooperative to the community was made possible by its corporate governance and corporate citizenship. The Board of Directors of the cooperative provided it with strategic guidance, effective risk management, good supervision, effective monitoring, and effective strategies. The cooperative needs a code of ethics and ethical conduct, improved disaster management, and widespread articulation of its core values. The corporate citizenship of the cooperative should be institutionalized and focused on the triple bottom line:  people, planet and profit.