“How does value orientation of members, as a factor, affect the success and survival of Cooperatives particularly TUCC and PHCCI?”
Cooperatives have long been in existence and have been operating since the medieval times. From the Rochdale society until the present, this institution has been a key to economic development and poverty alleviation within the society it operates in. In the Philippines, the coop sector contributed Php 575 Billion or 12.5% in total GDP at the end of 2008. (Source: Philippine daily inquirer)
“Cooperatives continue to be an important means, often the only one available, whereby the poor, as well as those better off but at perpetual risk of becoming poor, have been able to achieve economic security and acceptable standard of living and quality life”
Despite these significant contributions of cooperatives in the society, it is alarming that the lifespan of cooperatives are so short. More often than not, a large percentage of cooperatives are dissolved even before they contribute fully to the community. Statistic shows that in the Philippines only 30.09% are operating while 30.14% are dissolved. In Region VIII, only 25% or 1, 005 out of the 3, 952 cooperatives that are registered at the CDA are operating, 62% or 2,456 are dissolved and the remaining is 13% are none operating. (Source: Cooperative monitoring statistics as of 2008)
According to Onagan, Filipino economist, this failure of cooperatives in the Philippines is attributed to the following causes: Incompetent management, Lack of proper understanding of the principles, practices through aims, and purposes of cooperative associations, Improper use of credits by the borrowers who, instead of using money for production, spent it for fiestas or luxuries, Defective securities, and Political interference particularly in the collection of the overdue accounts.
Given these facts, it is but imperative to find out the major cause of the existing failure of cooperatives. With these factors, it is still uncertain whether value orientations of members play a significant part in determining the success or failure of cooperatives. A need to examine this factor lies in the fact that the actions, commitment and participation of members all boils down to the character and moral responsibility they posses. Loan repayments, understanding of principles, attendance in general assemblies and embodiment of the spirit of Cooperativism is presumed to be dependent to the values members’ posses.
With these, the research seeks to find if there is a direct correlation between the kind of value orientation members of cooperatives have, particularly TUCC and PHCCI, with the success and survival of these institutions and introduce necessary interventions to correct this problems. Particularly, it aims to answer the question “How does the value orientation of members, as a factor, affect the success and survival of Cooperatives particularly TUCC and PHCCI?”
Specifically, it aims to address the following:
- 1.How does value orientation of members, affect their loan repayments?
- 2.Are those members with self-oriented expectations likely to default on their payments?
- 3.Are members who have a positive set of values less delinquent in terms of participation, commitment and Cooperativism?
- 4. How does this affect the operations of the cooperative and their contribution to the community it operates in?
- 5. What are the necessary action that these cooperatives must do to address this situation? What can the government do, if there is any?
- 6.How does the value orientation of a delinquent member influence the behavior of other members?