NATIONAL TEACHERS COLLEGE

MANILA

A WRITTEN REPORT

IN PARTIAL FUFILLMENT
OF THE REQUIREMENTS
IN COOPERATIVE MANAGEMENT

BY
Dimalig , Franco R.
Betorio, Charmaine
SUBMITTED TO
ENGR. BERNARD EVAN V. JAMON, MBA

February 20, 2020

 WRITTEN REPORT
UNIT VIII-The Role of Cooperatives and Government
1.) Community development
Community development is a process where community members come together to take
collective action and generate solutions to common problems. Community wellbeing
(economic, social, environmental and cultural) often evolves from this type of collective
action being taken at a grassroots level. Community development ranges from small
initiatives within a small group to large initiatives that involve the broader community.
Effective community development should be:
 a long-term endeavour
 well-planned
 inclusive and equitable
 holistic and integrated into the bigger picture
 initiated and supported by community members
 of benefit to the community
 grounded in experience that leads to best practices
Community development is a grassroots process by which communities:
 become more responsible
 organize and plan together
 develop healthy lifestyle options
 empower themselves
 reduce poverty and suffering
 create employment and economic opportunities
 achieve social, economic, cultural and environmental goals
Community development seeks to improve quality of life. Effective community
development results in mutual benefit and shared responsibility among community
members. Such development recognizes:
 the connection between social, cultural, environmental and economic matters
 the diversity of interests within a community
 its relationship to building capacity
Community development helps to build community capacity in order to address issues
and take advantage of opportunities, find common ground and balance competing
 interests. It doesn’t just happen – capacity building requires both a conscious and a
conscientious effort to do something (or many things) to improve the community.

Community
Often when we think of community, we think in geographic terms. Our community is the
city, town or village where we live. When community is defined through physical location,
it has precise boundaries that are readily understood and accepted by others. Defining
communities in terms of geography, however, is only one way of looking at them.
Communities can also be defined by common cultural heritage, language, and beliefs or
shared interests. These are sometimes called communities of interest. Even when
community does refer to a geographic location, it doesn’t always include everyone within
the area. For example, many Aboriginal communities are part of a larger non-Aboriginal
geography. In larger urban centres, communities are often defined in terms of particular
neighbourhoods.
Most of us belong to more than one community, whether we’re aware of it or not. For
example, an individual can be part of a neighbourhood community, a religious
community and a community of shared interests all at the same time. Relationships,
whether with people or the land, define a community for each individual.

Development
The term “development” often carries an assumption of growth and expansion. During
the industrial era, development was strongly connected to increased speed, volume and
size. However, many people are currently questioning the concept of growth for
numerous reasons – a realization that more isn’t always better, or an increasing respect
for reducing outside dependencies and lowering levels of consumerism. So while the
term “development” may not always mean growth, it always imply change.
The community development process takes charge of the conditions and factors that
influence a community and changes the quality of life of its members. Community
development is a tool for managing change but it is not:
 a quick fix or a short-term response to a specific issue within a community;
 a process that seeks to exclude community members from participating; or
 an initiative that occurs in isolation from other related community activities.
Community development is about community building as such, where the process is as
important as the results. One of the primary challenges of community development is to
 balance the need for long-term solutions with the day-to-day realities that require
immediate decision-making and short-term action.

2.) Role of the government in cooperative development under the new code

REPUBLIC ACT NO. 6939

AN ACT CREATING THE COOPERATIVE DEVELOPMENT AUTHORITY TO PROMOTE THE

VIABILITY AND GROWTH OF COOPERATIVES AS INSTRUMENTS OF EQUITY, SOCIAL
JUSTICE AND ECONOMIC DEVELOPMENT, DEFINING ITS POWERS, FUNCTIONS AND
RESPONSIBILITIES, RATIONALIZING GOVERNMENT POLICIES AND AGENCIES WITH
COOPERATIVE FUNCTIONS, SUPPORTING COOPERATIVE DEVELOPMENT,
TRANSFERRING THE REGISTRATION AND REGULATION FUNCTIONS OF EXISTING
GOVERNMENT AGENCIES ON COOPERATIVES AS SUCH AND CONSOLIDATING THE
SAME WITH THE AUTHORITY, APPROPRIATING FUNDS THEREFOR, AND FOR OTHER
PURPOSES.

Section 1. Declaration of Policy. — It is hereby declared the policy of the State to promote the
viability and growth of cooperatives as instruments of equity, social justice and economic
development and to create an agency, in fulfillment of the mandate in Section 15, Article XII of
the Constitution. Toward this end, the State shall recognize cooperatives as associations
organized for the economic and social betterment of their members, operating business
enterprises based on mutual aid, and founded upon internationally accepted cooperative
principles and practices.

In furtherance of this policy, the appropriate national economic planning agency and include the
promotion of growth and expansion of cooperatives as a major and indispensable component of
national development plans. All departments, branches, subdivisions and instrumentalities of
the Government shall promote the formation of cooperatives under their respective programs by
providing them with appropriate and suitable incentives.

The State recognizes the cooperative sector as primarily responsible for the institutional
development of cooperatives. Accordingly, the State recognizes the rights of the cooperative
sector to initiate and foster within its own ranks cooperative promotion, organization, training,
information gathering, audit and support services, with government assistance where
necessary.
Government assistance to cooperatives shall be free from any restriction and conditionality that
may in any manner infringe upon the objectives and character of cooperatives as provided in
this Act. The State shall, except as provided in this Act, maintain the policy of noninterference in
the management and operation of cooperatives.

Section 2. Creation of the Cooperative Development Authority. — The Cooperative

Development Authority is hereby created under the Office of the President to carry out the
provision of this Act.
Section 3. Powers, Functions and Responsibilities. — The Authority shall have the following
powers, functions and responsibilities:

(a) Formulate, adopt and implement integrated and comprehensive plans and programs on
cooperative development consistent with the national policy on cooperatives and the overall
socioeconomic development plans of the Government;

(b) Develop and conduct management and training programs upon request of cooperatives that
will provide members of cooperatives with the entrepreneurial capabilities, managerial expertise,
and technical skills required for the efficient operation of their cooperatives and inculcate in
them the true spirit of cooperativism and provide, when necessary, technical and professional
assistance to ensure the viability and growth of cooperatives with special concern for agrarian
reform, fishery and economically depressed sectors;

(c) Support the voluntary organization and consensual development of activities that promote
cooperative movements and provide assistance towards upgrading managerial and technical
expertise upon request of the cooperatives concerned;

(d) Coordinate the efforts of the local government units and the private sector in promotion,
organization, and development of cooperatives;

(e) Register all cooperatives and their federations and unions, including their division, merger,
consolidation, dissolution or liquidation. It shall also register the transfer of all or substantially all
of their assets and liabilities and such other matters as may be required by the Authority;

(f) Require all cooperatives, their federations and unions to submit their annual financial
statements, duly audited by certified public accountants, and general information sheets;

(g) Order the cancellation after due notice and hearing of the cooperative's certificate of
registration for non-compliance with administrative requirements and in cases of voluntary
dissolution;

(h) Assist cooperatives in arranging for financial and other forms of assistance under such terms
and conditions as are calculated to strengthen their viability and autonomy;

(i) Establish extension offices as may be necessary and financially viable to implement this Act.
Initially, there shall be extension offices in the Cities of Dagupan, Manila, Naga, Iloilo, Cebu,
Cagayan de Oro and Davao;

(j) Impose and collect reasonable fees and charges in connection with the registration of
cooperatives;

(k) Administer all grants and donations coursed through the Government for cooperative
development, without prejudice to the right of cooperatives to directly receive and administer
such grants and donations upon agreement with the grantors and donors thereof;

(l) Formulate and adopt continuing policy initiatives consultation with the cooperative sector
through public hearing;
 (m) Adopt rules and regulations for the conduct of its internal operations;

(n) Submit an annual report to the President and Congress on the state of the cooperative
movement; and

(o) Exercise such other functions as may be necessary to implement the provisions of
cooperative laws and, in the performance thereof, the Authority may summarily punish for direct
contempt any person guilty of misconduct in the presence of the Authority which seriously
interrupts any hearing or inquiry with a fine of not more than Five hundred pesos (P500.00) or
imprisonment of not more than ten (10) days, or both. Acts constituting indirect contempt as
defined under Rule 71 of the Rules of Court shall be punished in accordance with the said Rule.

Section 4. Governing Body. — The Authority shall be governed by a Board of Administrators

consisting of a Chairman and six (6) members to be appointed by the President, all of whom
shall be chosen from among the nominees of the cooperative sector with two (2)
representatives each from Luzon, Visayas and Mindanao. They shall serve for a term of six (6)
years without reappointment: Provided, That among those first appointed, the Chairman shall
serve for a term of (6) years, three (3) members to serve for a term of four (4) years, and three
(3) members to serve for a term of two (2) years: Provided, further, That there shall be four (4)
ex officio members, one (1) each from the: (a) Department of Agriculture, (b) Department of
Transportation and Communications, (c) National Electrification Administration, and (d) Sugar
Regulatory Administration. Said representation status for the agencies is on a nonvoting basis
and terminates one (1) year from the operation of the Authority, but said ex officio members
shall not be holding any other board position in any government entity. The Chairman and
members shall serve on a full-time basis. Any vacancy in the Board shall be filled by
appointment by the President in accordance with the membership allocation set forth in this
section: Provided, That a member so appointed shall serve only for the unexpired term.

Section 5. Qualifications of Members of the Governing Board. — No person shall be

appointed Chairman or member of the Board of Administrators unless he possesses the
following qualifications:

(a) A natural-born Filipino citizen of legal age;

(b) A Bachelor's Degree in Cooperatives, Economics, Finance, Agriculture, Fisheries, Veterinary

Medicine, Business, Social Science, Law, Management, or in similar fields of study and five (5)
years of experience as an official or officer of a cooperative, government agency, or
nongovernment organization engaged in cooperative development or, in the absence of a
Bachelor Degree, at least ten (10) years of experience in cooperatives either as an officer of a
cooperative or a government agency or nongovernment organization engaged in cooperative
development; and

(c) Must be a resident of the region he represents for at least five (5) years.
Any person appointed as Chairman or regular member of the Board of Administrators shall
divest himself of any direct or indirect pecuniary interest in or dealings with cooperatives upon
his appointment.
 Section 6. Board of Administrators Meeting. — The Board of Administrators shall meet at
least once a month for the transaction of its regular business. Special meetings may be called
by the Chairman or majority of the members to consider specific matters. A majority vote by the
entire Board shall be required for a decision. All meetings of the Board shall be held at the head
office in Metro Manila or at any other place as may be determined by the Board.
The Board of Administrators shall appoint an Executive Director who shall be the chief operating
officer of the Authority whose compensation shall be fixed by the Board of Administrators.

Section 7. Organization of the Authority. — The Authority shall be organized within one
hundred twenty (120) days from the effectivity of this Act.

Section 8. Mediation and Conciliation. — Upon request of either or both parties, the Authority
shall mediate and conciliate disputes within a cooperative or between cooperatives: Provided,
That if no mediation or conciliation succeeds within three (3) months from request thereof, a
certificate of non-resolution shall be issued by the commission prior to the filing of appropriate
action before the proper courts.

Section 9. Power to Register Cooperatives. — The power to register cooperatives shall be

vested solely on the Authority. The functions of the following departments and agencies relating
to the registration of cooperatives as such are hereby transferred to the Authority:

(a) The Department of Agriculture;

(b) The Bureau of Agricultural Cooperatives Development;

(c) The Department of Transportation and Communications;

(d) The Sugar Regulatory Administration;

(e) The National Electrification Administration; and

(f) Any other pertinent government agency.

The Bureau of Agricultural Cooperatives Development created under Executive Order No. 116,
Series of 1987, is hereby abolished and its qualified employees are hereby absorbed by the
Cooperative Development Authority, in accordance with its staffing pattern, subject to Civil
Service rules and regulations and rules of the Office of Compensation and Position
Classification: Provided, That the Regional Cooperative Development Assistance Offices of
Regions IX and XII, created under Executive Order No. 634, are also hereby abolished and their
employees shall be given preference for employment with the Cooperative Development
Authority in accordance with its staffing pattern, subject to Civil Service rules and regulations:
Provided, finally, That those who are not absorbed shall be given separation pay computed at
one and one-fourth (1 1/4) months salary for every year of service. Service of six (6) months or
more shall be considered as one (1) year in computing the years of service for severance pay
and, whenever applicable, other retirement benefits under existing laws.
Section 10. Transfer of Funds and Programs. — The Cooperative Development Loan Fund
 created under Presidential Decree No. 175, as amended, is hereby transferred from the
Department of Agriculture to the Authority.

The function of the Fund for Management Training and Assistance Program granted to the
Department of Agriculture by Presidential Decree No. 175, as amended, is likewise hereby
transferred to the Authority.

The fund provided for the Management Training and Assistance Program under Presidential
Decree No. 175, as amended, is hereby converted into a fund for the development of
cooperatives and may be used for such purpose upon the request of the cooperatives
concerned: Provided, That duly registered cooperatives shall have the right to establish their
own private training centers or federations for purposes of cooperative development.

In addition, the Cooperative Marketing Project as created under loan agreements which are now
managed by the Department of Agriculture is likewise hereby transferred to the Authority.

Section 11. Cooperatives in the Education System. — The history, philosophy, principles
and practices of cooperatives and their role as a factor in the national economy shall be
disseminated both in formal and non-formal education.

The role of nongovernment organizations, not registered as cooperatives but duly registered
under Philippine laws and engaged in cooperative promotion, organization, research and
education, shall be recognized. The Authority may accredit such nongovernment organizations
as non-academic training organizations. The training courses offered by them may be eligible as
credits for the purposes of academic, professional and career advancements of their trainees.
Existing training centers for cooperatives may qualify as nongovernment organizations under
this Act.

State colleges and universities shall provide technical assistance and guidance to cooperatives
in the communities wherein they operate, upon request.

Section 12. Cooperatives in the Banking System. — The promotion and development of
cooperative banks as part of the Philippine banking system shall be a major concern of the
Authority which shall undertake the necessary program towards this end in collaboration with
the Central Bank of the Philippines and the cooperative sector concerned.

Section 13. Rule-Making Authority. — The Authority is hereby authorized to promulgate, after
due public hearing and upon approval of the President, such rules and regulations as may be
necessary to implement the provisions of this Act. Such implementing rules and regulations
shall take effect within fifteen (15) days after publication thereof in the Official Gazette or in two
(2) newspapers of general circulation. All subsequent amendments to the implementing rules
and regulations shall undergo the same process.

Section 14. Prohibition. — No organization shall be allowed to use the title "cooperative" in its
name unless it follows all generally accepted cooperative principles, applicable cooperative
laws, and is duly registered under this Act: Provided, That organizations which have used the
word "cooperative" as part of their nomenclature but which do not qualify as cooperatives under
the provisions of this Act shall have three (3) years within which to qualify and to register with
the Authority. If at the end of the three-year period provided herein, the said organizations still
do not qualify, it shall be unlawful for the organizations to continue using the word "cooperative"
in their names.

Section 15. Information Campaign. — The Cooperative Development Authority is mandated

to conduct a six (6) months information campaign on the provisions of this Act, beginning three
(3) months from the effectivity of this Act.

Section 16. Appropriations. — The funds needed to carry out the provisions of this Act shall
be charged to the appropriations of the Bureau of Agricultural Cooperatives Development and
the Regional Cooperative Development Assistance Offices of Regions IX and XII under the
current General Appropriations Act in addition to the appropriations of other
departments/agencies/funds whose functions/programs are transferred to the Authority:
Provided, That in its initial year of operations, an additional amount of not exceeding Sixty
million pesos (P60,000,000.00) may be requested and drawn by the Authority from the
Contingent Fund of the President. Thereafter, such sums as may be necessary for its continued
implementation shall be included in the annual General Appropriations Act.

Section 17. Transitory Provisions. — All cooperatives registered under Presidential Decree
Nos. 175 and 775, and Executive Order No. 898 shall be deemed registered with the
Cooperative Development Authority: Provided, however, That they shall submit to the nearest
Cooperative Development Authority office their certificates of registration, copies of their articles
of incorporation and bylaws, and their latest duly audited financial statements within one (1)
year from effectivity of this Act, otherwise, their registration shall be cancelled: Provided, further,
That cooperatives created under Presidential Decree No. 269, as amended by Presidential
Decree No. 1645, shall be given three (3) years within which to qualify and register with the
Authority: Provided, finally, That after these cooperatives shall have qualified and registered, the
provisions of Sections 3 and 5 of Presidential Decree No. 1645 shall no longer be applicable to
the said cooperatives.

Section 18. Repeals. — All acts, general orders, executive orders, letters of implementation,
letters of instruction, regulations or circulars, or parts thereof, inconsistent with any of the
provisions of this Act are hereby repealed or modified accordingly. In case of doubt, the same
shall be resolved in favor of the cooperatives.

Section 19. Separability. — If for any cause any part of this Act is declared unconstitutional,
the rest of the provisions shall remain in force and effect.

Section 20. Effectivity. — This Act shall take effect fifteen (15) days after its publication in the
Official Gazette or in a newspaper of general circulation.

A. Areas of government involvement

The government regulates the activities of businesses in five core areas:
advertising, labor, environmental impact, privacy and health and safety.
 Consumer protection Via Advertising
Restrictions
Laws pertaining to marketing and advertising set in motion by the Federal Trade
Commission exist to protect consumers and keep companies honest about their
products. Every business in the country is required to comply with the truth-in-
advertising laws and could face lawsuits for violation.

Truth-in-advertising laws are made up of dozens of tidbits under three main

requirements: advertising in the United States must be truthful and non-
misleading; businesses need to be able to back up claims made in
advertisements at any time; and advertisements must be fair to competitors and
consumers. Additionally, in compliance with the Fair Packaging and Labeling Act
of 1966, all product labels must include information about the product, such as
nutrition, size, and distribution and manufacturing information.

Employment and Labor Protection

Among the ever-changing regulations in business are employment laws. These laws pertain to
minimum wages, benefits, safety and health compliance, work for non-U.S. citizens, working
conditions, equal opportunity employment, and privacy regulations – and cover the largest area
of subjects of all the business regulations. Several employment regulations stand out as the
heavy hitters among the others.

The 1938 Fair Labor Standards Act, applied by the Wage and Hour Division, is still in effect
today and was last updated in 2017. It covers setting the national minimum wage, overtime,
record keeping and child labor laws that cover employees in the private sector as well as
federal, state and local governments.

The Employee Retirement Income Security Act ensures that employees receive the

retirement plan options and health care benefits to which they are entitled as full-time
employees. There are also several required benefits, including unemployment insurance,
Workers' Compensation Insurance and employee Social Security assistance.

The Immigration and Nationality Act ensures that only U.S. citizens and individuals with work
visas can be hired, and every business must keep on file I-9 eligibility forms for applicable
employees.
 Environmental Impact of Business
The carbon footprint and the effect of businesses on the environment is regulated by the
Environmental Protection Agency alongside state agencies. The EPA enforces environmental
laws passed by the federal government through educational resources, frequent inspections
and local agency accountability.

The Environmental Compliance Assistance Guide exists to help businesses, small and large

alike, achieve environmental compliance, and serves as an educational resource more than an
enforcer.

Date Security and Privacy Protection

Sensitive information is usually collected from employees and customers during hiring and
business transactions, and privacy laws prevent businesses from disclosing this information
freely. Information collected can include social security number, address, name, health
conditions, credit card and bank numbers and personal history. Not only do various laws exist to
keep businesses from spreading this information, but people can sue companies for disclosing
sensitive information.

The Federal Trade Commission monitors business practices and charges or fines companies

that violate the privacy promises they made to consumers. For example, when a company
promises not to use their information in ways other than what is stated, or shares their private
information without consent, or monitors customers' online, mobile and/or television habits
without informing them in advance, the FTC charges them publicly with such offenses, levies
hefty fines and forces the business to change their unethical practices.

Safety and Health

The Safety and Health Act of 1970 ensures that employers provide safe and sanitary work
environments through frequent inspections and a grading scale. A company must meet specific
standards in order to stay in business. This regulation has changed frequently throughout the
years alongside the changing sanitary and workplace standards.

In accordance with the 1970 act, employers must provide hazard-free workplaces, avoiding
employee physical harm and death, through a number of procedures.

Three organizations oversee workplace health and safety:

 Occupational Safety and Health Administration (OSHA)

 Mine Safety and Health Administration (MSHA)

 Wage and Hour Division (rules for employee children under age 18)
 Activities (Q&A)
UNIT VIII-The Role of Cooperatives and
Government
1-4 . GIVE FOUR OF COMMUNITY WELLBEING

5-8 GIVE ATLEAST THREE AREAS OF GOVERNMENT

9. WHAT IS THE NEW CODE OF COOPERATIVE

10. WHEN IS THE FIRST APPROVAL OF LAW IN NEW CODE OF

COOPERATIVE

ANSWER
1.ECONOMIC

2.SOCIAL

3ENVIRONMENTAL

4 CULTURAL

5-8

SAFETY AND HEALTH

DATE SECURITY AND PRIVACY PROCTECTION

ENVIRONMENTAL IMPACT OF BUSINESS

EMPLOYMENT AND LABOR PROTECTION

Consumer protection Via Advertising Restrictions

9.R.A NO. 6939

10. MARCH 10 1990

 References
UNIT VIII-The Role of Cooperatives and
Government
HTTPS://SMALLBUSINESS.CHRON.COM/FIVE-AREAS-
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https://www.cda.gov.ph/resources/issuances/republic-act-6939?
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MQUQBdQc

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VAc8bGJ_gtb-8