Code of Conduct, Ethical Standard, Ethics Committee; Guide for PH Cooperatives

1. Jo B. Bitonio. CDA Dagupan

2. The implementation of this Code shall create
positive motivation rather than punitive
control, hereby penalties shall apply only
when necessary and only the extent required
by the circumstances.
Jo B. Bitonio. CDA Dagupan

3. An Ethics Committee is hereby created and shall be
composed of three (3) members to be appointed by the
Board of Directors. Within ten (10)days after their
appointment, they shall elect from among themselves a
Chairman, Vice-Chairman and a Secretary who shall serve
for a term of one (1) year or until successors shall have
been appointed and qualified. No member of the
Committee shall hold any other position in the Cooperative
during his term of office.
Article I Creation of Ethics
Committee
Jo B. Bitonio. CDA Dagupan

4. The Ethics Committee shall:
1.Develop Code of Governance and Ethical Standard to be
observed by the members, officers and employees of the
cooperative subject to the approval of the BOD and ratification of
the GA;
2.Disseminate, promote and implement the approved Code of
Governance and Ethical Standards;
3.Monitor compliance with the Code of governance and Ethical
Standards and recommend to the BOD measures
to address the gap, if any;
Article 2: Functions &
Responsibilities
Jo B. Bitonio. CDA Dagupan

5. 4.Conduct initial investigation or inquiry upon receipt of a
complaint involving Code of Governance and Ethical
Standards and submit report to the BOD together with the
appropriate sanctions;
5.Recommend ethical rules and policy to the BOD;
6.Perform such other functions as may be prescribed in the
By-laws or authorized by the GA.
Article 2: Functions &
Responsibilities
Jo B. Bitonio. CDA Dagupan

6. Offenses &
Violations
Article 3:
Jo B. Bitonio. CDA Dagupan

7. An officer should not be delinquent
in his/her loans
Jo B. Bitonio. CDA Dagupan

8. Should an
officer is
delinquent of
his/her loan , an
officer is
disqualified to
be elected in
any position in
the cooperative
Jo B. Bitonio. CDA Dagupan

9. In attending meetings –
The number of hour/s Late should be
deducted prorate from the Officers’
Per Diem
Jo B. Bitonio. CDA Dagupan

10. Do not wear slippers, shorts and
sleeveless shirts
Jo B. Bitonio. CDA Dagupan

11. Wear Uniform
Jo B. Bitonio. CDA Dagupan

12. No Sleeping During Meeting
Jo B. Bitonio. CDA Dagupan

13. No Text and Call during Meeting
Jo B. Bitonio. CDA Dagupan

14. No to Excessive Calls during Meetings
Jo B. Bitonio. CDA Dagupan

15. No to Conflict of interest
Jo B. Bitonio. CDA Dagupan

16. No to Nepotism
Jo B. Bitonio. CDA Dagupan

17. No to Abuses of Resources
1. Remuneration
2. Transportation
3. Communication
4. Travel
5. Training
6. Entertainment
Jo B. Bitonio. CDA Dagupan

18. No to Commissions (kickbacks)
Jo B. Bitonio. CDA Dagupan

19. No to Board interference in
management duties
Jo B. Bitonio. CDA Dagupan

20. No to One-Man leadership
Jo B. Bitonio. CDA Dagupan

21. Non to Excessive spending for non-
earning assets (building, cars,
computers, lavish meetings, excessive
travels, etc.)
Jo B. Bitonio. CDA Dagupan

22. No to Falsifying financial information
Jo B. Bitonio. CDA Dagupan

23. No to incomplete, false records
No to tampering of records
Jo B. Bitonio. CDA Dagupan

24. No to overspending
Jo B. Bitonio. CDA Dagupan

25. No to irregular external audits
Jo B. Bitonio. CDA Dagupan

26. No to accepting free or greatly
discounted products, services or
other items of an extraordinary
value that are suitable for personal
use from an employee or
representative of a supplier, vendor,
subcontractor, consultant or
competitor of the Cooperative
Jo B. Bitonio. CDA Dagupan

27. Personal interests or activities that
are or could only be reasonably
accomplished using Cooperative,
material, equipment or proprietary
information (e.g., working for an
outside interest - whether paid or
unpaid - whose activities could
only reasonably be conducted
during normal business hours)is
prohibited.
Jo B. Bitonio. CDA Dagupan

28. Directly or indirectly acquiring or
turning any business
opportunity which ought to be
available to the Cooperative to
your own or someone else’s
personal advantage is
prohibited.
Jo B. Bitonio. CDA Dagupan

29. During Meeting the avoid the 5 S
• Smile (smiling only)
• Sit (sitting only)
• Sleeping during meeting
• Snoring
• Intent is only to Sign the voucher
(receive honorarium without
participating)
Jo B. Bitonio. CDA Dagupan

30. Directors, officers and committee members, who willfully
and knowingly vote for or assent to patently unlawful acts,
or who are guilty of gross negligence or bad faith in
directing the affairs of the Cooperative or acquire any
personal or pecuniary interest in conflict with their duties
as Directors, officers or committee members shall be liable
jointly and severally for all damages resulting there from
to the Cooperative, members and other persons.
Article 5: Liabilities of Directors, Officers
and Committee Members.
Jo B. Bitonio. CDA Dagupan

31. When a director, officer or committee
member attempts to acquire, or acquires in violation
of his duties, any interest or equity adverse to the
Cooperative in respect to any matter which has been
reposed in him in confidence, he shall, as a trustee
for the Cooperative, be liable for damages or loss of
profits which otherwise would have accrued to the
Cooperative.
Article 5: Liabilities of Directors, Officers
and Committee Members.
Jo B. Bitonio. CDA Dagupan

32. Article 5: Possible Penalties
1. Letter Reminder
2. One on One meeting
3. Hearing
4. If found guilty: suspension or termination
depending on the degree of violations
committed
Jo B. Bitonio. CDA Dagupan

33. Article 6Code of Conduct for
Cooperative
Employees
Jo B. Bitonio. CDA Dagupan

34. Objectives
• To provide management with prudent
guidelines in the administration of employees’
discipline, and to ensure and maintain high
level of efficiency; and
• To provide the employees with the basic
guidelines of personal conduct in the
performance of their job.
Jo B. Bitonio. CDA Dagupan

35. Employees shall:
1. Report on time and be ready to perform their
assigned tasks at the start of their official working
time.
2. Practice courtesy at all times in dealing with
visitors, customers, co-employees and officers. They
shall entertain customers and visitors courteously
and say thank you for every transaction attended.
3. Exercise prudence in discharging their day-to-day
tasks by reporting to the immediate supervisor any
problem that arises during their tour of duty and to
refrain from discussing the same in
Jo B. Bitonio. CDA Dagupan

36. 4. answered before the third ring. When making or receiving a
call, the employee must identify himself/herself. When
receiving a call for somebody who is not available at the time
of the call, he/she shall ask the name and the message of the
caller. Say thank you at all times for every attended calls.
5. Maintain proper behaviour at the workplace at all times by
using appropriate language and manners.
6. Perform his/her job with utmost honesty and maintain high
moral standards of behaviour and shall refrain from indecent,
lewd, and immoral acts which can give occasion for scandal or
loss of confidence in the company.
Employees shall:
Jo B. Bitonio. CDA Dagupan

37. 7. Exercise expediency in delivering goods and services to
its clientele. In the private corporate world, any form of
delay is a mortal sin and therefore unforgivable.
8. Put official communications in writing.
9. Protect the interest of the cooperative
10. Wear their cooperative I.D. within the company
premises and to wear the appropriate uniform
prescribed by the company during official working
hours/days in accordance with the schedules set for each
uniform suit/style.
Employees shall:
Jo B. Bitonio. CDA Dagupan

38. 11. Exercise due care in the handling/use of the
properties belonging to the company or entrusted by
the company. Improper/incorrect use of equipment
or parts thereof that leads to the damage of said
property shall constitute a violation.
12. Comply with and perform all reasonable directives
and instructions of duly authorized superiors to
maintain the work-flow and promote harmony and
good order which are essential to the efficiency of
operations and realization of the corporate
objectives of the company.
Employees shall:
Jo B. Bitonio. CDA Dagupan

39. PENALTIES
After due process, an employee who violates a particular
provision of this Code shall be disciplined on the basis of the
following penalties:
A – Verbal Warning
B – Written Warning
C – Suspension depending on the gravity of the offense
D – Termination
Except for offense(s) punishable by termination, counting
of offense(s) begins every 1st day of the year and ends every
last day of the year.
Jo B. Bitonio. CDA Dagupan

40. VERBAL WARNING
Is an advice calling the attention of the
employee if the violation is a minor offense
and no damage caused by such simple
infraction.
WRITTEN WARNING
Is a formal letter or notice to an employee
as the employee’s violation of a company
policy or rules and regulation.
Jo B. Bitonio. CDA Dagupan

41. SUSPENSION
Is a forced temporary absence from work with pay which
may be imposed as a penalty depending upon the gravity of
the offense committed.
A. PREVENTIVE SUSPENSION
• Is not a penalty but an interim measure to be imposed
depending on the gravity of the offense allegedly committed
pending formal investigation of a reported violation to
temporarily remove the respondent from the scene of his
misfeasance/malfeasance and to preclude the possibility of
exerting undue influence or pressure on the witnesses against
him or tampering/destruction of documentary evidence on
file.
Jo B. Bitonio. CDA Dagupan

42. Preventive suspension without pay can be
imposed only for a maximum period of thirty
(30) calendar days. In exceptional
circumstances, the company has the option to
extend the suspension beyond (30) days
provided that the employee is paid his salary.
Jo B. Bitonio. CDA Dagupan

43. During the period of preventive suspension, the
employee is not allowed to enter the premises
of the company except to attend the
investigation proceedings/hearings of the
case.
Jo B. Bitonio. CDA Dagupan

44. B. PUNITIVE SUSPENSION
Is an imposition of a penalty of an erring
employee after conviction for an offense or a
misconduct committed.
TERMINATION
Is the separation of the employee for
employment after the facts and circumstances
of case have been fully considered,
established and proofs
Jo B. Bitonio. CDA Dagupan

45. Date Approved:
Signatories:
Jo B. Bitonio. CDA Dagupan

46. Reference
CDA ACBL template
Regional Tripartite Wages and productivity
Board – I. A guide Handbook in the
Formulation of a Code of Conduct and
Discipline For Micro, Small and Medium
Establishments (MSMEs)
Josefina B. Bitonio (2011) Code of Ethics and
Conduct for Cooperatives. Lecture
Presentation for DAR
Jo B. Bitonio. CDA Dagupan