Ethical Dimensions of Education and Training

in Co-operatives For the Advocacy, Research, and

Training Cluster 2014 Co-operatives Summit

Cebu City

Outline

• Background

• Objectives

• Importance

• Definitions

• Issues and Challenges

• Proposed Resolutions

• Proposed Actions

Background

• Economic-Social-Environmental-Ethical Concerns

• 2012 IYC Theme

• ICA Blueprint 2020

Economic Concerns

• Low Productivity

• Low Incomes

• Unemployment

• Underemployment

• High Taxes

• High Cost of Doing Business

• Inefficient Production and Distribution

Social Concerns

• High Incidence of Poverty! 10.8 M Households Live below Poverty Line!

• Very Big Gap between the Rich and the Poor!

• Poor Access to Basic Social Services!

Environmental Concerns

• Number 3 in Calamity

• Number 2 in Earthquake

• Number 1 in Typhoon

Ethical Concerns

• Corruption!

• Red tape in the Bureaucracy!

Co-op Ed in the Philippines

• There is no question about the importance given to Co-op Education in the Philippines. It may be the Only country in the world where pre-membership education seminar is mandated by law as a requirement for membership in the Co-op.

• Co-ops set aside 10% of their net surplus for the Co-op Education and Training Fund (CETF), half of which is intended for their own co-op education activities, the other half for use by the union or federation of which it is a member.

• Recently, Rule 7 of Implementing Rules & Regulations (RA 9520) required all officers of Co-ops to undergo various trainings to qualify.(R. Villamin)

Legal Basis

• The legal basis for this rule is Art. 44 of the Code, quoted as follows:

• “Art. 44. Functions, Responsibilities and Training Requirements of Directors, Officers and Committee Members.

• The functions and responsibilities of the directors, officers and committee members, as well their training requirements shall be in accordance with rules and regulations issued by the Authority.

• From a purely development perspective, Co-op Education should have contributed to a successful Co-op Movement in the country by now.

• To this day, however, there is hardly a Co-op Movement to speak of and very little success to show if Co-ops are taken together as a Sector in the economy.

• CDA data as of December 2010 indicate that over 92% of all Co-ops registered are considered micro and small. These data suggest that Co-ops seem to have been permanently confined to the Stage of Underdevelopment after almost a Hundred Years of history.(R. Villamin)

• Research needs to be done to establish the connection between Co-op Education as practiced and the actual state of Co-op development. Anecdotal evidence already suggests that present problems experienced by Co-ops are related to failure in Education.

• The PMES has become simply an venue for Information rather than an educational avenue to prepare people for Responsible Membership; hence, the increasing concerns about the Quality of present membership.

• The CETF has also degenerated into an opportunistic fund, with no external significance except as a token of support to Co-op Unions and Federations which have been deprived of resources to perform their education mandate.(R. Villamin)

• Assuming there is indeed such a connection, the questions to ask are: What contribution can Co-op education make in solving the problem of underdevelopment of the Co-op Movement ?

• What improvements can be made at the level of individual Co-ops and collectively as a system? (R. Villamin)

• A way to start is to look at the content of Co-op education throughout the Co-op system. What is the essence of the message?

• Are Co-ops promoted as Socio-Economic Enterprises with distinct Character and Purpose in respective Local Economy?

• The increasing Commercialization of Business Practices and Competition among Co-ops already raise the question whether Co-ops are getting the right kind of Message or whether this is being delivered at all.(R. Villamin)

• The challenge of delivery is in fact one problem Rule 7 has already exposed: There is no national system of Co-op education in the country fully in place yet , a fact that can limit the good intentions of the law.

• And yet Rule 7 might be a “historic” opportunity for Co-ops in the country to move from underdevelopment to real development.(R. Villamin)

Co-op Education and Training System Framework

CDA-Co-op Sector Training Providers CDA-Co-op Sector

Training Standards Instructional Materials National Assessment

Training Curriculum Courseware Certification Delivery

Systems Thinking in Co-op Education and Training

Standards

Quality,

Effective,

Relevant

Accessible to Co-ops Nationwide

A system

Assessment

Certification

Accreditation

2012 IYC

• “Co-ops are a reminder to the international community that it is possible to pursue both economic viability and social responsibility.” Ban Ki-moon, UN Sec Gen.

2020 ICA Blueprint

• Participation

• Sustainability

• Identity

• Capital Structure

• Legal Framework

ICA Blueprint: Key Elements

PARTICIPATION SUSTAINABILITY

IDENTITY

CAPITAL LEGAL

FRAMEWORK

Co-ops Worldwide!

• Co-ops have One Billion Members Globally (Worldwide Institute, 2012)

• Co-ops provide over One Hundred Million Jobs Globally, 20% more than Multi National Enterprises

• 300 Largest Co-ops have a Combined Annual Turnover of US $2 Trillion in 2010 (World Co-op Monitor, 2012)

• About 250 Million Farmers belong to a Co-op in Developing Countries (World Bank Report, 2007)

• Increase public awareness about Co-ops and their contributions to Socio-Economic Development and the achievement of MDG’s

• Promote the Formation and Growth of Co-ops

• Encourage Governments to Establish Policies, Laws and Regulations Conducive to the Formation, Growth and Stability of Co-ops.

UN Goals for the IYC 2012

Objectives

• To highlight the Challenges and Opportunities

• To align with the Co-op Movement

• To emphasize the role of co-operatives in Nation Building

Importance

• ASEAN Economic Community Integration is Here!

• High Incidence of Poverty and Glaring Inequality Persists!

• Co-operative Economy is a Platform for Pursuing Sustainable Development Goals!

Definitions!

• What is Ethics?

• What is Business Ethics?

• What is Morality?

• What are Values?

Definitions!

• Ethics: A group of Moral Principles or Set of Values that define or direct Us to the Right Choice.

• The discipline concerned with what is Good or Bad or Right or Wrong deals with Moral Principles and Values.

• Ethics is about Actions and Decisions.

Definitions!

• Business Ethics: are Related to Issues of What is Right and Wrong while Doing Business

• Business Ethics is a Sum Total of Principles and Code of Conduct.

• Business Ethics operate as a System of Values relating Business Goals and Techniques to meet Human Ends

Definitions!

• Morality: is the Character of being in Accord with the Principles or Standards of Right Conduct.

• Morals: are Values which one Attribute to a System of Beliefs

• Morality is the Standard that an Individual or Group has about What is Right or Wrong or Good or Evil.

Definitions!

• Values : Fundamental Beliefs

• Values : Objective, Universal, and Timeless

Core Moral Values

• Love of God

• Respect for Authority

• Respect for Human Life

• Respect for Human Sexuality

• Stewardship

• Love for Truth

Definitions!

• What is the Nature of Co-operatives?

• What are the Principles of Co-operatives?

• What are the Values of Co-operatives?

• What are the foundational Social Principles?

What is a Co-operative?

A Co-op is defined as an “Autonomous Association of Persons United

Voluntarily to meet their Common Economic, Social and Cultural Needs

and Aspirations through a Jointly Owned and Democratically Controlled

Enterprise."

(ILO Recommendation 193)

Co-op Business Model

As a Social Enterprise Member Focused, Member Owned, Member Control Needs Driven Complementary Supplementary Capital Build up from Members Volunteerism, Self Reliance, Mutual Help Service Fees Statutory Requirements Net Surplus Patronage Interest on Share Capital A Network of Local and International Alliances Concern for the Community Grounded on Universal Principles and Values

Unique Co-op Identity!

• Co-op Principles operationalize Co-op Values:

– Voluntary and Open Membership

– Democratic Member Control

– Member Economic Participation

– Autonomy and Independence

– Education, Training and Information

– Cooperation Among Co-ops

– Concern for the Community

Co-op Values Toward Sustainability

• Self Help • Self Responsibility • Democracy • Equality • Equity • Solidarity • Honesty • Openness • Social Responsibility • Care for Others

Foundational Social Principles

• Dignity of Human Person • Subsidiarity • Solidarity • Common Good • Preferential Option for the Poor • Primacy of Worker over Capital • Equitable Sharing of Burdens and Benefits • Universal Destination of the Goods of the Earth • Development is for All, and of the Whole Person

Issues and Challenges in Education and Training for Co-ops in the Philippines

• Large Number of Micro and Small Co-operatives. Affordability!

• Large Number of Uncoordinated Unions and Federations of Co-operatives. Cooperation!

• Untapped Potentials of LGU’s. Subsidiarity!

• Limited Budget of Regulatory Agencies. Distributive Justice!

• Conduct of and Attendance to Training for Compliance. Integral Human Development!

Proposed Resolutions!

• Curriculum Content should be delivered as prescribed with Innovation in Methodology as Appropriate to the Level of Participants.

• Trainings should be the Development of Competency and Skills not for Compliance Purposes Only.

• All Trainings to be Conducted should be Coordinated with the Established Union and Federations in the Area.

Proposed Resolutions!

• Involvement of the Individual Regulators should have a Proper Authorization from the Chairperson or Designated Officer of CDA in Coordination with Concerned Union and Federations

• Education and Training in Co-ops is a Social Responsibility towards a more Inclusive Co-op Movement!

Proposed Actions!

• Validate and Identify more Issues and Challenges related to Education and Training

• Unions , Federations, Other Training Providers, and Regulator Agree to Address Issues and Challenges

• Revisit the Roadmap for Advocacy, Research, Education and Training for Co-operatives.

Thank You!!!

References

• Advocacy, Research, and Training Cluster, PCC

• Co-op Education Forum Notes

• NATCCO

• VICTO

• Philippine Federation of Teachers and Employees Co-op

• Co-op Union of Mandaluyong City

• Cavite Union of Co-operatives

References

• Josephson, Michael, “Business Ethics and Leadership, Josephson Institute