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FACILITATORS GUIDE
Basic Co-op Education Series
(with Accompanying Video Presentations)

Produced by the: CO-OP EDUCATION FORUM

Table of Contents
Introduction . 2 Module 1: Origin of Co-operatives .. 4 Module 2: What is a Co-operative? ...................................................................................... 10 Module 3: Co-operative Values . 19 Module 4: Co-operative Principles .. 27 Module 5: Me and My Co-operative .. 30 Tips in Organizing the Basic Co-op Orientation Seminar .. 34 About the Co-op Education Forum .. 38

Introduction This Facilitators Guide is the companion material to the five (5) videos on Basic Co-op Orientation produced by the Co-op Education Forum. The videos are part of a series of co-op education materials, entitled Lets Co-operate, which aims (1) to promote a common understanding of the fundamentals of co-operatives among co-op members, officers and management staff; and (2) assist co-operatives of all types in conducting education program for members and the public.
This Guide should, therefore, be used in conjunction with the videos containing five basic co-op orientation lessons namely: Module 1: Origin of Co-operatives Module 2: What Is A Co-operative? Module 3: Co-op Values Module 4: Co-op Principles Module 5: Me & My Co-operative

The five (5) modules can be used separately by the co-operative depending on its target audience. It is recommended, however, that in conducting a Pre-Membership Education Seminar (PMES) the five (5) modules should be used altogether to achieve maximum results. Target Group This Guide is written with prospective members in mind or for persons who have shown interest to become members of an existing co-operative, or who intend to organize and register their own. Even existing co-op members who need to undergo re-orientation on the fundamentals of co-operatives could be the target group. They would generally have reached high school education. It is also written for adult learners, who have to go through the demands of daily living and therefore may have to exert extra effort to attend learning sessions. Hence, each module is designed for a maximum duration of one hour. At the same time, it is activityoriented in order to enhance opportunities for adult learning. The ideal group size for each learning event is 25 to 30 participants. Guide for Facilitators The facilitators/trainers are members of the co-operative themselves either knowledgeable Board members, or articulate members of the Education and Training Committee, or both, who are supposed to conduct the training with the aid of the video presentations. Each lesson is written with clear instructions for facilitators to follow. However, it is important to point out that these instructions are merely a guide. Depending on individual experiences, facilitators can make use of this guide in different ways:

1. They can follow the logical structure of the lesson plan. If time is limited, they can shorten the process or eliminate some activities. On the other hand, if circumstances allow for longer duration of the session, they can lengthen the process or add more activities. 2. They can change some learning activities and use other learning methods and tools they are comfortable with. 3. Experienced facilitators may even develop their own lesson plan. What is important is to preserve the objectives of the lesson and employ adult learning methodologies at all times. Of course, the videos remain central to the learning event. 4. The structure of the lesson plan, the learning methodologies and the tools can also be changed, if the profile of the participants are different from the one described above. It has also to be noted that the video presentations are generic in the sense that they describe the general situation and are meant to be used by all types of co-operatives. It is the task, therefore, of the facilitator to contextualize the message of the video presentations t o the specific situation of his or her co-operative. This means using actual examples of ones coop e.g. products and services, policies, business practices, etc. when facilitating the sessions. There is, therefore, flexibility in the use of this Guide. What should be emphasized here only is that the task of the co-op educator is to facilitate adult learning. At the end of the day, we want co-op members who do not only understand the co-operative but are also motivated to become good members. Using adult learning methodologies can best achieve this. Hence, this Guide also includes some TIPS on facilitating. As well, it has some materials for further reading to support facilitators with some content.

The Writing Team Romulo M. Villamin Lucy G. Furo Bienvenido P. Nito Severino I. Medina,Jr.

Facilitators Guide Module 1: Origin Of Co-Operatives

OBJECTIVES: At the end of the module, participants will be able to: a. Explain that, historically, co-operatives were formed by ordinary people to help themselves and solve basic economic and social problems; b. Express the belief that the organization (co-op) can respond to his or her familys needs; and c. Express further the realization that the success of the co-operative would depend on his or her contribution and on all members working together. TIME: One (1) hour MATERIAL/SUPPLIES: Computer, LCD projector or big TV screen, (alternatively, acetates & OHP projector), good sound system, meta cards, black or white board, brown paper. Video Origin of Co-operatives

Time

Session Guide Note: This is the first of 5 lessons and should be a good starting point for clarifying to prospective members their personal expectations of the co-operative and what it can do. We should remember that people come to the co-op because they have economic problems that individually they cannot solve and, initially, they may have wrong information or expectations about what the co-op can do. It is quite normal, for instance, that when a prospective member of the savings and credit co-operative decides to join a co-operative, he or she is motivated only by the need to borrow. The challenge to the co-op educator is to help him or her transcend this selfish motive to one of

Cue for the Facilitator

collective consciousness i.e. the realization that the ability of the co-op to respond to his or her familys needs depends on members themselves, contributing individually in terms of equity share capital and pooling them to serve as operating funds and working together efficiently and effectively to make the co-op business successful. The main aim of this lesson, therefore, is to help prospective members take the first important step to a new consciousness. If this is achieved, the next modules should lead them to a better, or even deeper, understanding of co-operatives. 10 min Start the session by leading a community prayer or by asking a participant to lead the prayer. Do a quick round of introductions by asking each participant to state only his or her name and occupation. (It is important that the prospective member is engaged in gainful occupation or profession. This is because part of his/her income is going to be paid as equity contribution to the co-operative and he/she is willing to do so.) Explain to the participants that this is the first of 5 lessons that aim to help them understand the nature of a cooperative, what it can do and how members can contribute to its success. Explain also that the lessons are structured to maximize their individual participation; encourage them to participate actively in all the sessions. In this session, they should ask themselves and answer the following questions: Is the co-operative the right organization for me? Can it respond to the needs of my family? Can I perform what is expected of me as a member? It may be useful to prepare beforehand the list of 5 lessons written in a brown paper, posted where everyone can see. These questions can also be written in a brown paper and posted in front for everyone to see and to reflect on during the whole session.

10 min

Ask the participants: Question # 1: What motivated you to join the co-op? What are your expectations? If there are only 10 participants, ask each one for their answers to the above questions. If there are more than 10, ask at least 10 participants for their answers. Post their answers, in key phrases or words, in the board or brown paper. As much as possible, group the same ideas together. Write the questions in the board. Write the answers to question # 1 legibly on one side of the board or place the brown paper on one side of the board. This will be used as reference for the next activities. Make sure the computer, the LCD projector or big TV screen are ready for the video showing. It is important to test the sound system beforehand to make sure that the video message will be clearly understood.

12 min

Tell the participants that they will now view the video on the history of co-operatives. Show the video on Origin Of Co-Operatives.

15 min

After the video showing, ask the participants the following questions: Question # 2: How did the idea of co-operatives come to be? Why? Allow 2 or 3 participants to explain the answer to the questions. The answers should include the following points (point them out if they are not included in the answers): Co-ops, as we know them today, originated during the 1800s when manual labor was replaced by machines resulting to higher levels of production These ideas can be summarized in Powerpoint slides, or in

(Industrial Revolution). There was much human suffering because many people were unemployed, and those who found work had to suffer poor working conditions because of long hours of work, low wages and no benefits. Workers were generally exploited and lived in abject poverty around factories where living conditions were deplorable crowded, unsanitary, no running water, etc. Even women and children were exploited. Compare this to the slums we have in urban centers, maybe much worse. Workers decided that the only way out of their misery was to work together and create their own business. They pooled together the little money they had and started a store where they could buy basic necessities at lower price and better quality. They patronized the store to ensure its viability, and expanded slowly as they gained business experience. They called this enterprise a cooperative because it depended on the cooperation of all members, who were both owners and customers of the business. This became the forerunner of the present-day consumer cooperative. The success of this first co-op store was replicated by other workers, and by farmers, fishermen and other occupational groups who formed their own co-operatives to supply their own needs. Now cooperatives are found all over the world engaged in all kinds of businesses, protecting their members from exploitative practices in the market and improving their lives in the process.

acetate for OHP presentation, if available. If not, you can prepare the summary beforehand in a brown paper.

Question # 3: What important lessons did you learn from the history of co-operatives? Allow each participant to give his or her answer. Post the answers, in key phrases or words, in the board or brown paper. Do not repeat the same ideas and as much as possible, group the same ideas together. Write these ideas beside the answers to Question # 1, which were earlier written in the board or brown paper. Underline ideas that relate to the following points and explain that: The list of answers to question # 3 should be put beside the list of answers to question # 1.

By pooling their limited resources, even the poor can own and establish their own enterprises called co-operatives. To succeed, the co-operative has to cater to the needs of all members (economic purpose); it has to be capitalized by members themselves, who are expected to patronize their own business to make sure that it succeeds. The business of the co-operative is the means by which members satisfy their economic needs, but its ultimate purpose is to improve the lives of members and ultimately the community in which they live (social purpose). A handout outlining the history of your co-op, highlighting key events, would be advisable here so that all important information about the co-op will not be missed. This will also shorten the discussion since the participants can refer to the handout even after the session.

Relate the above discussion to the actual situation of your own co-op how it started, who started it, what its economic and social objectives are, its products and services. Highlight key events in the life of the co-op.

10 min

Conclude the session by asking the participants to focus their attention on the two lists of ideas (answers to Questions 1 & 3). Ask the participants:

Judge from their answers whether they have developed a new consciousness about Question # 4: Looking at the list of what they expect from the co-op (question # 1) and the list of what the co-op can the co-op. do (question # 3): - Can you say that the co-op is the right organization that can help you with your needs? Why? - Can you commit to working with others & contributing to the success of the co-op?

As much as possible, give the opportunity to each one to give their answer or answers to these questions. 3 min Close the session by announcing the next session what, when and where. Ask them if they have any suggestions for improvement on the next sessions. Close with a prayer.

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Facilitators Guide Module 2: What is a Co-operative?

OBJECTIVES: At the end of the module, the participants will be able to: a. Identify the most important characteristics of a co-operative; b. Explain what makes a co-operative unique and different from other forms of enterprises; and c. Explain what the co-operative can do for members and their families. TIME: One (1) hour MATERIAL/SUPPLIES: Computer, LCD projector or big TV screen, (alternatively, acetates & OHP projector), good sound system, meta cards, black or white board, brown paper. Video What Is A Co-operative? Time 5 minutes Session Guide Two cartolinas will be posted where participants can write their answers to the following questions as they enter the venue. Cue for the Trainer or Facilitator

This introductory activity should help get st 1 cartolina: Wish ko lang (what I expect to learn from the expectations and the seminar) even apprehensions of 2nd cartolina: Fear factor (what are my apprehensions in the participants. attending this seminar)

Greet the participants! Start with an opening prayer.

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3 minutes

Process the answers written by the participants in the cartolinas Write on the board the by aligning them with the following objectives of this session: objectives of this session; or show it using Powerpoint Identify the most important characteristics of a copresentation (if facility operative; Explain what makes a co-operative distinct and unique is available) or make from other forms of business organizations; and use of brown paper. Describe what the co-operative can do for me and my family. Show the video What is a Co-operative? Ask the participants to take note, mentally or in writing if they have pen and paper, of what they learn from the video. The following questions should guide them: What struck me most in the video? Are my personal expectations about the co-op realistic? Can the co-op meet those expectations? Check the computer, the LCD projector or big TV screen for the video showing. It is important to test the sound system and adjust the lights beforehand to make sure that the video message will be clearly understood.

10 minutes

25 minutes

BUZZ SESSION Divide the participants into groups of three (3) or four (4). Based on the video presentation, ask each group to discuss and prepare short answers to the following questions (write these questions on the board): What are the three most important characteristics of a co-operative? What makes the co-operative unique and different from other business enterprises?

Allow each group to select their team leader and secretary; distribute pentel pens and meta cards.

Ask the groups to write their answers in the meta cards. After 10 minutes of discussion, ask one member of each group to report and explain their answers. After they are explained, the meta cards should be placed in the question they fall under. Ask the group to clarify their answers if necessary.

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Underline, elaborate, or add the following points, if these are not included in the answers: People come together in the co-operative because of a common need. That need or needs are met by the cooperative through the products and services it offers to members. Members provide the capital the co-operative needs to run the business; therefore, members are the real owners of the co-operative. At the same time, they are its main customers. For this reason, the success of the co-operative also depends on how well members patronize its business. As owners, members are the supreme authority and they exercise that authority when they meet in a general assembly every year, and through the board of directors and other committees they elect democratically during the assembly. These elected officers are accountable to them. Co-operatives are unique and different from other businesses because, among other things: o Members have only one vote regardless of the amount of capital they have in the co-operative (one member, one vote). o Members get back part of what they paid for the products and services, from the net surplus realized by the co-operative at the end of the year. This is called patronage refund, which is based on the volume of individual transactions of members. As an organization of people with a common bond of interest, the co-operative has also a social purpose that is, it aims to improve the lives of its members and their families, and to contribute to the development of the community and of the country as a whole. Co-operatives around the world adhere to the same set of values and principles (these will be explained separately in the other modules). These points are best explained as an elaboration of the answers (if they are mentioned) in the meta cards posted in the board.

Summarize this part of the session by giving the following

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definition of the co-operative: A Co-operative is an autonomous and duly registered association of persons, with a common bond of interest, who have voluntarily joined together to meet their social, economic and cultural needs and aspirations by making equitable contributions to the capital required, patronizing their products and services, and accepting a fair share of the risks and benefits of the undertaking in accordance with universally accepted co-operative principles. 7 minutes At this point, explain your own co-operative: - What is its main purpose (vision, mission) - Who are its members - What are its products and services - Its organizational structure - Officers and key staff - Other important information Engage the participants in a general discussion. Ask them: After learning what the co-operative is and what it can offer, do you think your personal expectations can be met by being a member? Is there anything you originally expected but could not be met by the co-op? Are you prepared to contribute your share to the success of the co-op? Prepare this definition in brown paper beforehand or in an acetate or Powerpoint presentation.

Make available information about your co-op e.g. brochure, pamphlets, other written information they can bring with them.

8 minutes

2 minutes

Conclude the session by thanking the participants for their active participation. End the session with a thanksgiving prayer.

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Supplementary Reading 1 Nature and Character of Co-operatives Co-operatives are both associations of people and business enterprises. They are distinguished from other organizations by their philosophy, nature, and character. Failure to appreciate their true nature and character deviates from co-operative principles and ideals and loses sight of the ultimate objective of the co-operative movement. 1. Co-operatives are service-oriented. Co-operatives are organized to serve their members by providing goods and services at reasonable cost. Members contribute the capital of the co-operative so that goods and services can be appropriately provided through its business activities and not to maximize the profit or dividends their capital contributions will earn from the business. Co-operatives, in servicing the members, do not act as charitable organizations. Members are aware that the benefits come from their contributions, patronage refund, and mutual efforts to help one another. The motto is Co-operatives are not for profit and not for charity but for service. 2. Co-operatives are community-oriented. Co-operatives work for the welfare of their members by integrating themselves into the life of the community in particular and the nation in general. Co-operatives enhance the peoples welfare through increased productivity both the members and the communities where they operate. 3. Co-operatives are people-oriented. Co-operatives are not merely economic instruments concerned with dividends and related economic and financial returns. They are the mechanisms of change for total human development. This means the total development of man as human being in all the economic, political, cultural, and spiritual aspects. According to G. Fauquet, the goal of the co-operatives is to make people- people with sense of both individual and joint responsibility- so that they may rise individually to a full personal life and collectively to a full social life. 4. Co-operatives are owned, managed, and patronized by members. Co-operatives are member-owned, member-controlled, and member-used. Ownership is a very important factor in the success of any co-operative. It is very important that

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members have full authority to manage and control their co-operative. If a co-operative starts and operates solely from borrowed capital, it violates the principle of self-help and loses much of its autonomous character. Co-operatives must depend on the patronage of their own members and not from non-members. However, in certain cases a limited patronage by non-members may be allowed mainly for reasons of business viability and service to the community. 5. Co-operatives are business enterprises. Co-operatives engage in businesses with social responsibility. They play a meaningful economic role in the community life by serving and performing as efficiently and responsively as the other financial and business enterprises. Co-operatives have to generate surplus to be able to continually improves and expand its services. They have to be viable, creative, enterprising, and efficient to continually grow and serve the needs of their members. Increasing patronage cannot be maintained without quality service, management and performance. The net surplus generated from business operations are allocated to the members at the end of each year. 6. Co-operatives develop best through self-help and mutual help. Robert Owen advocated the philosophy of self-help that inspired the Rochadale Pioneers to organize. He said, If you want something done, do it yourself. The philosophy has been responsible for the success of many co-operatives all over the world- and it is the best alternative for the poor in any country to unite and help themselves out of their depressed condition. This is not to say that they should not be assisted. But assistance from outside, whether technical or financial, must not stifle rather stimulate initiative, self-help and self-reliance. The principle of subsidiary also applies- that before asking or soliciting from the outside, self-determination and selfcapability should be considered. The role of government and non-government organizations in the development of cooperatives should be assistance and not dominance. They should not in any manner interfere in the purely internal affairs f the co-operatives, taking care that they preserve their autonomous and independence and self-help through mutual-help characters. On the part of the co-operatives being assisted, they should do their part by seeing to it that the objective of the assistance given is achieved- that they grow stronger rather than become dependent upon such assistance. 7. Co-operatives serve best when they answer the real and felt needs of the members.

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How do we expect the members to participate in the activities and to patronize the business of their co-operative whose services they d not really need or feel they need? Of what benefit are co-operatives that do not serve the real needs of their members? It is important therefore that proper approaches and techniques are employed to ensure that the real needs of the members are identified and recognized before any cooperative is organized. The assisting agency or agencies should make the real need be felt by the members. The assistance should begin from the organization stage and sustained through the developmental stage up to the point when the co-operative begins to operate on a self-sustaining basis. 8. Co-operatives develop best from bottom to top. Being mass-based organizations, co-operatives develop best from the bottom to the top. Organizationally, their development should be from the primary level t the secondary, tertiary, and up to the apex. Geographically, they should develop form the barangays to the municipal, provincial, city, regional, and national. The primary co-operatives are the foundation stones of the whole co-operative structure. Organizing the apex before the base is like building the roof of the house before its foundations. Sooner or later, in such a case, the roof topples down because the foundation is weak and unable to support its load. 9. The development of co-operatives is enhanced through a multi-sectoral approach. Having in mind the specific roles of each sector- the government, non-government, and the co-operative sector- must play, a multi-sectoral approach can ensure that all aspects of the development process are considered. This enhances the smooth and continuous development of the co-operatives. This approach involves the participation of all sectors from the planning stage to the implementation, evaluation, and monitoring of all activities. Such approach enhances true people power- enlightened, democratic, and participative- in all levels, both organizational and geographical.1

Source: Pre-Membership Education, Landbank Co-operative Development Foundation, Inc., pp 22-5

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Supplementary Reading 2 COMPARISON OF CO-OPERATIVES WITH OTHER TYPES OF BUSINESS ENTERPRISES Basic Difference Single Proprietorship Only one person Partnership Corporation Co-operative

1. Number of Persons Required for Formation

At least two or more

At least five persons (natural and juridical persons can be stockholders at the same time)

At least 15 persons (natural persons can be members only of primaries; while juridical persons can be members of federations and/or unions) Must be registered with CDA

2. Grant Juridical Personality

No separate juridical personality from owner but business name should be registered with DTI Application form

Mere agreement of partners can be a partnership. However, it is better if registered under the SEC

Must be registered with SEC

3. Registration Requirements for Documentation

Contract of partnership

Articles of Incorporation, By-Laws and Bank Statement

Articles of Cooperation, By-Laws, Economic Survey, Bonds and Treasurers Affidavit Members contribute (limited to ten percent of subscribed capital)

4. Capitalization Contributions

Only owner contributes capital

Partners contribute cash or services

Stockholders pay for amount of shares they want to buy Board of Directors make final decision

5. Management Structure

Only one person decides

Partners make a collective decision

General Assembly has final decision

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6. Voting Rights

No voting rights as it concerns only one person

Vote proportional to interest

Vote proportional to interest; proxy voting allowed Limited until authorized capital

One member, one vote; no proxy voting in primary co-ops

7. Liability

Unlimited as to owner

Unlimited as to partner except limited partnerships Partners pay tax as share on partners

Limited until subscribed share capital

8. Taxability

Income tax of owner

Profits taxable; stockholders pay tax on dividends received

Net surplus nontaxable, interests on members deposits are not subject to tax (Art. 61, RA 9520) Co-operative continues; heirs become members if qualified

9. Effect of Death of Owner, Partner, Stockholder or Member 10. Motive for Existence

End of business operations unless heirs can take over business Profit

Partnership automatically dissolves

Corporation continues; heirs inherit shares

Profit or service

Profit

Profit and service

____________________
Source: Pre-Membership Education, Landbank Co-operative Development Foundation, Inc., page 26

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Facilitators Guide Module 3: Co-operative Values

OBJECTIVES: At the end of the module, the participants will be able to: d. Identify the values that are important to the co-operative; and e. Explain at least 3 co-op values and why they are important. TIME: One (1) Hour MATERIAL/SUPPLIES: Computer, LCD projector or big TV screen, (alternatively, acetates & OHP projector), good sound system, meta cards, black or white board, brown paper. Handout ICA Co-operative Identity Statement Video Co-operative Values Time 5 minutes Session Guide Greet the participants! Make a very quick game to introduce yourself and each participant by stating what is your sweetest name and what you value most as a person. Examples: Hi Im Lucy, I care for others. Hello there! My name is Eden and Im thrifty. Participants will be given pieces of paper. They will enumerate the 5 most important things they value in life. Then, they will be asked to rank these 5 things (1 as the most important; 5 as the least important) 5 minutes Remind that participants that in the last module cooperatives were distinguished from other forms of Distribute the handout on the ICA Cue for the Trainer or Facilitator Instruct the group to form a circle and introduce themselves (counterclockwise).

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business enterprises. One of their distinguishing characteristics is their adherence to universally accepted co-op values and principles. Explain that in this module, they will focus their attention on co-operative values. They will:

Co-operative Identity Statement (ICIS).

Write on the board Identify these values (pinapahalagahan ng the objectives of this samahang kooperatiba) session; or show Explain at least 3 co-op values and why these are them using acetate or Powerpoint. important to the success of the co-operative

10 minutes

Play the video on Co-operative Values

Ensure that the sound system, lights, Ask the participants to take notes, mentally or by writing CD/LCD, TV monitor are properly set up if they have pen and paper, of the insights they will get beforehand so that from the video and validate these insights in the the video message is succeeding group activities. properly understood. Role Play: Ask the participants to form themselves into four groups by choosing their own group members. Inform them that each group will be assigned one co-op value mentioned in the video; the group will explain this co-op value by demonstrating it through a role play. Only the group knows the co-op value assigned to it and the rest of the participants will guess what that co-op value is after the role play. Assign the following co-op values to each group: Group 1 Self-help Group 2 Caring for others Group 3 Democracy Group 4 Solidarity

25 minutes

The number of participants per group would depend on the total number of participants. Ideally, each group should have 5 members and should not be more than 8. The participants can form their own groups. Alternatively, you can group them by random selection.

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Give each group at least 10 minutes to prepare a scene (or tableau) that can best explain the co-op value assigned to it. When ready, each group will present the scene for at least 2 minutes. The rest of the participants will guess the co-op value explained by the group after each role play. Engage the participants, for a few minutes, in an open discussion to process their learning from the role plays by asking the following questions: How important are the co-op values to members as owners of the co-operative? How can these co-op values make the cooperative really different from other businesses? It would be good if the co-op manager, or the chairperson or any member of the board would be present during this part of the session to answer questions of the participants relating to policies and business practices of the coop.

10 minutes

Relate the co-op values to actual practice. Explain how your co-operative exemplifies these values through its policies and business practices. Give specific examples of policies and business practices.

5 minutes

Conclude the session by asking some participants to share their insights about co-op values, or what they learned from this session. They can relate what they wrote earlier as the 5 most important things they value in life to these insights. In closing, read the Prayer of St. Francis of Assisi.

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Supplementary Reading 1

Statement on the Co-operative Identity

Definition A co-operative is 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. Values Co-operatives are based on the values of self-help, self-responsibility, democracy, equality, equity and solidarity. In the tradition of their founders, co-operative members believe in the ethical values of honesty, openness, social responsibility and caring for others. Principles The co-operative principles are guidelines by which co-operatives put their values into practice. 1st Principle: Voluntary and Open Membership Co-operatives are voluntary organisations, open to all persons able to use their services and willing to accept the responsibilities of membership, without gender, social, racial, political or religious discrimination. 2nd Principle: Democratic Member Control Co-operatives are democratic organisations controlled by their members, who actively participate in setting their policies and making decisions. Men and women serving as elected representatives are accountable to the membership. In primary co-operatives members have equal voting rights (one member, one vote) and co-operatives at other levels are also organised in a democratic manner.

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3rd Principle: Member Economic Participation Members contribute equitably to, and democratically control, the capital of their co-operative. At least part of that capital is usually the common property of the co-operative. Members usually receive limited compensation, if any, on capital subscribed as a condition of membership. Members allocate surpluses for any or all of the following purposes: developing their co-operative, possibly by setting up reserves, part of which at least would be indivisible; benefiting members in proportion to their transactions with the co-operative; and supporting other activities approved by the membership. 4th Principle: Autonomy and Independence Co-operatives are autonomous, self-help organisations controlled by their members. If they enter to agreements with other organisations, including governments, or raise capital from external sources, they do so on terms that ensure democratic control by their members and maintain their co-operative autonomy. 5th Principle: Education, Training and Information Co-operatives provide education and training for their members, elected representatives, managers, and employees so they can contribute effectively to the development of their cooperatives. They inform the general public - particularly young people and opinion leaders - about the nature and benefits of co-operation. 6th Principle: Co-operation among Co-operatives Co-operatives serve their members most effectively and strengthen the co-operative movement by working together through local, national, regional and international structures. 7th Principle: Concern for Community Co-operatives work for the sustainable development of their communities through policies approved by their members.

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Supplementary Reading 2 Co-operative Values Traditionally, the cooperative movement has had deep ties to the world's wide array of religions and ideologies. It has continuously explored its own belief system and attempted to identify those personal ethics and social ideas, if any, that are shared by cooperators and motivate our future actions. The 1995 Statement articulates the best in our belief system, the ideals of personal and social conduct to which we aspire. In its background paper on the Statement of Identity, the ICA explains, "Any discussion of values within cooperatives must inevitably involve deeply-felt concerns about appropriate ethical behavior. Achieving a consensus on the essential cooperative values [within a rich array of belief systems among ICA members] is a complex but rewarding task." Basic cooperative values are general norms that cooperators, cooperative leaders and cooperative staff should share, and which should determine their way of thinking and acting. They are our statement of what we think is the right thing to do. Based on a book written by Sven Ake Book for the 1992 ICA conference, Cooperative Values in a Changing World, the discussion assumes every generation recreates and refines its basic values so that they are inspirational to contemporary society. It is in our statement of values that we engage the hearts, conscience and loyalty of cooperative members. The first sentence of the values statement addresses our convictions about how to achieve a better society and what form that society should take. The values include: Self-help: People have the will and the capability to improve their destiny peacefully through joint action which can be more powerful than individual effort, particularly through collective action in the market. Members have the right to participate, to be informed, to be heard and to be involved in making decisions. Members are the source of all authority in the cooperative. "The basic unit of the cooperative is the member....This basis in human personality is one of the main features distinguishing a cooperative from firms controlled primarily in the interests of capital." (ICA Background Paper) Equal rights and opportunities for people to participate democratically will improve the use of society's resources and foster mutuality, understanding and solidarity.

Democracy:

Equality:

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Equity:

Fair distribution of income and power in society and its economic life should be based on labor, not ownership of capital. Within the cooperative, rewards for active membership in the cooperative will be distributed equitably, be it through patronage dividends, allocations to capital reserves, increases in services or reduction in charges. Cooperatives are based on the assumption that there is strength in mutual self-help and that the cooperative has a collective responsibility for the well-being of its members. Further, individual cooperatives strive to create a united cooperative movement by working with other cooperatives to improve collective well-being.

Solidarity:

The values statement also articulates values of personal and ethical behavior that cooperators actualize in their enterprises. They describe the kind ofpeople we strive to be and the traits we hope to encourage - honesty, openness, social responsibility and caring for others -- through cooperation. From the earliest days of the Rochdale Pioneers, cooperatives have emphasized the importance of honest dealings in the marketplace: accurate measurements, reliable quality and fair prices. Members have insisted that their enterprises have honest dealings with them. This in turn has led to honest dealings with non-members and a unique level of openness throughout the organization. And many cooperatives have manifested the values of social responsibility and caring for others, reflecting concern for the health and well-being of individuals within communities and a commitment to help them help themselves. Ann Hoyt Cooperative Principles Updated
University of Wisconsin Center for Cooperatives

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PRAYER OF ST. FRANCIS OF ASSISI

Lord, make me an instrument of your peace: where there is hatred, let me show love; where there is injury, pardon; where there is doubt, faith; where there is despair, hope; where there is darkness, light; where there is sadness, joy.

O Divine Master, grant that I may not so much seek to be consoled as to console; to be understood as to understand; to be loved as to love. For it is in giving that we receive; it is in pardoning that we are pardoned; and it is in dying that we are born to eternal live.

Amen.

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Facilitators Guide Module 4: Co-operative Principles

OBJECTIVES: At the end of the module, the participants will be able to: f. Identify the principles adhered to by co-operatives; g. Explain at least 3 co-op principles and why these principles are important; and h. Describe how these principles are put into practice in the co-operative. TIME: One (1) Hour MATERIAL/SUPPLIES: Computer, LCD projector or big TV screen, (alternatively, acetates & OHP projector), good sound system, meta cards, black or white board, brown paper. Video Co-operative Principles

Time 5 minutes

Session Guide Greet the participants! Start with an invocation. Ask each one to introduce oneself by stating his or her nickname and stating what his or her motto in life is. Example: Hi. Im Bien and my motto in life is always count your blessings.

Cue for the Trainer or Facilitator The setting for this introductory activity should be informal, like the participants forming a circle while introducing themselves. Make sure the participants have a copy of the ICA Cooperative Identity Statement.

5 minutes

Explain that in the previous session, a handout on the ICA Cooperative Identity Statement was distributed. The Statement included the 7 Co-operative Principles followed by all cooperatives around the world. These principles were first enunciated by the Rochdale Pioneers in 1844, then updated by the International Co-operative Alliance (ICA) in 1937, in 1966,

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and finally in 1995. ICA is the international body representing co-operatives around the world. Co-operatives have to adhere to these principles to be called real co-operatives. In this module, the participants will be able to: - Explain why these co-op principles are important to members and to the co-operative. - Describe how these principles are put into practice by the co-operative in its day-to-day business. 10 minutes Play the video on Co-operative Principles. Ask the participants to take notes, mentally or by writing if they have pen and paper, of the insights they will get from the video and validate these insights in the succeeding group activities. Write on the board the objectives of this session; or show them using Powerpoint or acetate. Check the computer, the LCD projector or big TV screen, and the sound system to ensure these are ready for the video showing.

30 minutes

Group Activity: After the video showing, form the participants into seven beehive groups. Assign one Co-op Principle to each group. Ask each group to discuss and prepare answers to the following questions: How do you understand the co-op principle? Why is this principle important to members? How does this principle make the co-operative different from other business enterprises?

As before, allow the groups to organize themselves by choosing a chair and a recording secretary.

Allow the groups at least 10 minutes to discuss and come up with a group answer. When they are ready, ask one member to explain the groups answers. Allow the other groups to ask questions for clarification or to comment on the answers of the group. 7 minutes Relate the co-op principles to actual practice. Explain how your co-operative put these principles into practice through its policies and business practices. Give specific examples of these policies and business practices. It would be good if the co-op manager, or the chairperson or any member of the board would be present

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during this part of the session to answer questions of the participants relating to policies and business practices of the co-op. 3 minutes Conclude the session by asking some participants to share their learning from this module. Encourage them to share their views on how the co-op principles can be applied in the day-to-day business of the co-operative. End the session with a thanksgiving prayer.

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Facilitators Guide Module 5: Me And My Co-operative

OBJECTIVES: At the end of the session, the participants will be able to: d. Articulate at least 3 rights and privileges of members of a co-op. e. Articulate at least 3 duties and responsibilities of members of a co-op. f. Commit to become a good member of the co-op. TIME: one (1) hour MATERIAL/SUPPLIES: Computer, LCD projector or big TV screen, (alternatively, acetates & OHP projector), good sound system, meta cards, black or white board. Video Me & My Co-operative Time 5 min Session Guide Put the participants in relaxed mood by leading them in a relaxation activity (e.g. breathing exercise). Or put them in a reflective mood by asking them to close their eyes while somebody reads Acts 4:32-35. Give them time to reflect. 2 min Explain that this lesson is about RIGHTS and RESPONSIBILITIES of members. In this session, participants will answer the following questions: - What are my rights and responsibilities as a member of the co-op? - How can I contribute to the success of my co-op? - How can I explain my role as both owner and customer of the co-op? - Beyond helping myself and my family, what else am I expected to do? Cue for the Facilitator Soft music could be played in the background for this opening activity.

Prepare these questions beforehand in a brown paper. Or flash them in the screen if you are using OHP or Powerpoint.

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12 min

Tell the participants that they will view another video. Ask them to take note mentally or in writing if they have pen and paper of important learning and insights as they view the video. Show the video Me & My Co-Operative.

Make sure the computer, the LCD projector or big TV screen are ready for the video showing. It is important to test the sound system beforehand to make sure that the video message will be clearly understood. Write the questions in a manila paper beforehand, or in an acetate or Powerpoint slides.

15 min

Process their individual learning and insights from the video. Ask them to discuss, without standing or changing their sitting positions, with his or her neighbor the following questions: -

What is the most important lesson you learned from the video? - List down all the rights and privileges of members of Each discussion a co-op. group could be - List down all the duties and responsibilities of composed of 2 to 3 members of a co-op. participants Give the participants up to 10 minutes to discuss and come depending on their total number. The up with a group answer. Ask them to write the list of idea is not to lose member rights & privileges in one paper, and the list of member duties and responsibilities in another paper. time by moving or changing positions; Ask one member of each group to report their answers to participants can the first question (lessons). Publish their answers in the just turn to their board or brown paper, without repeating common neighbour/s. answers. 5 min Explain the role of members as both owners and customers It is useful to write in the co-op. MEMBERS = OWNERS + CUSTOMERS This is one of the distinguishing characteristics of the coMEMBERS = OWNERS + CUSTOMERS

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op, compared to other enterprises. - In other enterprises, the customers are different from the owners of the business. - In the co-op, members who are the owners are also the customers of its business. This is because the co-op is established precisely to cater to their economic needs. - Give examples of your own co-op and other co-ops as well: If this is a savings & credit co-op, only members can save and borrow money. If this is a consumers co-op, members are the primary customers but it also sells to the public. If this is a marketing co-op, it serves members by buying their produce and sell those produce to outside customers. Write MEMBER AS OWNER in a meta card; write MEMBER AS CUSTOMER in another meta card. Place one card on the top left side of the board; place the other card on the top right side of the board. 15 min Ask the same groups to:

in the board, or flashed in the screen by OHP or Powerpoint while explaining the points.

Give each group 3 meta cards; give tips on how to write in the cards e.g. only key words, After each card is explained, post it under one of the big letters, headings, MEMBER AS OWNER or MEMBER AS CUSTOMER, readable, etc. you posted earlier in the board. If the idea in the card is the same as the previous one (this is expected), put the card on top of the earlier one. This way you build a list of rights, privileges, duties and responsibilities under each heading, reflecting the participants choice as important to them. Identify the cards with the same ideas that are grouped together; these would indicate the participants choice as most important to them. Draw attention to the two lists on the board. Elaborate on the significance of the following:

Identify 3 rights, privileges, duties & responsibilities from the list they prepared earlier, and prepare to explain their 3 top choices. Explain to the whole group why their 3 top choices are important to them.

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The list of rights, privileges, duties and responsibilities now classified under each heading of MEMBER AS OWNER and MEMBER AS CUSTOMER. The meaning of the participants choices, if one list is longer under one category than the other (e.g. 10 cards under MEMBER AS OWNER, 5 cards under MEMBER AS CUSTOMER). The meaning of their top choices (several cards with the same idea) as most important to them.

Note: The interpretation of the above information, which is like the result of a mini-survey, would depend on the facilitator. His or her experience, interest and even personal advocacy will come into play here. It is the facilitators call. Whats important here is that by making their choices, we allow the participants to internalize those rights, duties and responsibilities. Hopefully, this would be the start of a process of building commitment among our members as they grow with the co-op. Lets now complete the list of rights, privileges, duties and responsibilities under each heading of MEMBER AS OWNER and MEMBER AS CUSTOMER. Ask the participants to look at the lists they wrote in their paper earlier and identify those ideas that are still missing in the board. As they identify each idea, write this in a meta card and post it under one of the headings. If there are still missing ideas, add them. This way you complete the list of list of all rights, privileges, duties and responsibilities of co-op members. 6 min As a final activity, conduct a spontaneous evaluation of the session. Ask the participants how they felt about the session. Encourage them to think in terms of what a good member means to me. If there is enough time, ask each one to express their feelings. If not, ask for volunteers among the participants. Close with a community prayer. As this is the last lesson, an appropriate closing program can be organized. Certificates of completion can also be distributed.

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Tips in Organizing the Basic Co-op Orientation Seminar (BCOS)

The Education Committee, headed by the Vice Chairman of the BOD with the appointed volunteers and full time training staff must be responsible for planning, preparation, coordination, implementation and evaluation of the BCOS. Goals and Objectives A basic co-op orientation seminar is an activity designed to provide a prospective member his duties and responsibilities, rights and privileges. Philosophy, guiding principles, policies, procedures, products, services, and brief history of the primary co-op is likewise emphasized in this seminar. One objective of this orientation seminar is to illustrate to the prospective member that through self reliance and mutual help their individual needs may be met. At the end of the seminar, the participant should be able to decide for himself if he fits in to the obligations and responsibilities of membership. The success of a BCOS may be measured in terms of the percentage of those who attended the activity eventually signs up and become a member of the primary co-op. A 50% sign up is good indication. Importance of co-ops as a social enterprise should highlight what co-ops have done to help people help themselves meet their needs, how cooperatives can complement their productive activities and supplement their family needs especially in the preparation for the future of their children. Thrift, constant and consistent savings, share capital build up, wise use of money, paying on due date, patronage of co-op services, active participation during general meetings, voting and getting elected when qualified are emphasized in discussing duties and responsibilities of members. Performing duties and responsibilities lead to exercising ones rights and privileges. Rights and privileges include access to products, services, information, participation, voting, and getting elected. People behind the growth of the co-ops are important for confidence building. The professional background and work experiences of the leadership and management are important to mention. Lessons from history of the co-op, both of the primary co-op history and the movement should be highlighted. The needs that were responded to by the organizers, the problems and adversities encountered in the beginning. It is important to be reminded of the 4Ps: (1) Planning, (2) Preparation, (3) Practice and (4) Performance. Planning requires us to consider the following: Who are our target audience?

35 What are the needs of our target audience? How many people are expected to attend? What do we offer? What are our messages? Who are our resource persons? Where do we hold the orientation seminar? Where is the appropriate venue? When do we hold the orientation seminar? When is the best time? What information campaign do we employ to invite participants? Who will be in charge of inviting the participants? What equipment and supplies are needed? How many people are needed to assist us? How much budget is needed to support us?

Preparation requires us to consider the following: What are the possible expectations of the target audience? Who are the other resource persons in the orientation seminar? What are the topics and objectives of each session? How many minutes are allotted for each resource person? What are the activities to be employed in the orientation seminar? How many minutes are allotted for each activity? Who is to lead the opening and closing prayer? Who is to give the opening and closing messages? What are our ice breakers? Who is to lead the ice breakers?

Practice requires us to consider the following: Are we aware of the 4Is in the conduct of seminar workshops: Ice breakers, Inspiration, Instruction, and Implementation? Are we aware of 4As in the conduct of seminar workshops: Awareness, Activities, Analysis, and Assimilation? Are we aware of the required facial expression, voice projection, posture, gestures and disposition? Always remember the dictum, you cannot teach what you do not know. Prepare well, practice makes perfect?

Performance requires us to consider the following: To pray for our participants To greet our participants Good Day! To have a smiling face and happy disposition To think of what is good for our participants To say what the theme of our session is To highlight three important messages of the session

36 To summarize the main message To ask questions at the end of the session To ask participants to render comment or opinion about the session

Announcements Announcements may be done at least one month before the actual activity. Announcements may be through any of the following: Venue Venue lay out may consider any of the following depending on the size of venue and number of participants. It is important to see the participants directly or without obstruction - half moon or Ushape. The participants are mostly adults. Most of the times they want to talk of their experiences and accomplishments. They want to participate. A U-shape seat arrangement may be appropriate to establish better rapport with them. Venue should be clean, properly lighted and ventilated. Scheduling of activities Education Committee must have a fixed schedule of a regular monthly conduct of BCOS, specifying the date, time, and venue. Seminar-Workshop activities may be a combination of the following: Short talk Video presentation Open forum Panel discussion Group discussion Role playing Question and Answer Meta plan Games Songs Testimonials Posters, billboards, streamers Flyers, letters of invitation, text messaging Website Community newspapers, local radio Parish announcements, word of mouth

37 Scheduling of activity may consider the nature of work of the participants. Different work assignments will offer different opportunities for training availability. Market vendors may have dead time from 1:00pm to 3:00pm. Office workers may be available on Saturday from 3:00pm to 5:00pm. Soldiers may be visited in their respective camps, depending on the permission of the camp commanders. Teachers may be available on Saturdays either 9:00am to 11:00am or 2:00pm to 4:00pm. Most entrepreneurial women members of Micro-Finance Institutions (MFI) can set aside one hour a day from 8:00am to 11:00am from Monday to Friday for a short orientation on the subject. Farmers may be available from 10:00am to 3:00pm from Mondays to Saturdays. Sundays are very tight. Factory workers are relatively free on Sundays from 2:00pm to 5:00pm. Other important reminders It is advisable that we know or have the profile of our participants before hand. We have to have an accomplished application form and information sheet. We should pay attention to the following information: Education level Gender and marital status Employment and income Region of origin Family background, years married and number of children Seminars attended Affiliations Needs and concerns

It is advisable to provide very light snacks to the participants. Heavy snacks make people sleepy. Brochures and forms including official receipts should be readily available. The organizational chart and brief history of the co-op should be displayed. This should highlight the people behind the co-op.

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About the CO-OP EDUCATION FORUM

The Co-op Education Forum is a convergence of national, regional and city co-op federations and unions, government agencies and universities involved in co-op education, and actively supported by some primary co-operatives. It aims to unify efforts towards building a national, comprehensive education and training system for co-operatives in the Philippines. The Forum has been meeting every month since June 2008. It has articulated a vision for this system and identified the four goals of: 1) access & equity - all co-ops should have equal access to education and training 2) quality & excellence - education & training providers & their co-op programs adhere to high standards of quality & excellence 3) relevance & responsiveness - co-op education & training programs are relevant to trainees, the co-op & society 4) efficiency & effectiveness - education & training providers are efficient & effective in delivering co-op programs It has started to undertake projects of system-wide significance, like the video project on Basic Co-op Orientation, with the participation of all relevant stakeholders. It is also developing with TESDA competency standards for all positions in the cooperative, based on the competency map drawn for the whole co-op sector. The Co-op Education Forum is the advocacy group for the industry groupings now taking shape in the co-op sector in the country.