Upholding accountability and integrity in cooperatives requires establishing clear policies and decision-making structures. The document discusses the importance of having a cooperative code of governance and ethical standards to guide behavior. It also emphasizes revamping organizational culture to promote accountability, such as setting goals, monitoring performance, and leading by example. Establishing committees and training programs can help enforce policies and allocate responsibilities to strengthen accountability in cooperatives.

1. Upholding Accountability
and Integrity in
Cooperatives Through
Policies and Decision
Making
A paper presented by Josefina B. Bitonio
Regional Director, CDA Dagupan Extension
Office, April 6, 2016 during the 9th Annual
National Micoop Forum
Punta Villa, Resort and Hotel, Iloilo City

2. • Foremost, I would like to express my sincere
gratitude to our host Ms. Evelia Bardos –
Tizon Group Head Micoop and her team for
their warm welcome and making it possible
for me to join your annual event here at Iloilo.
• My respect and appreciation to Dr. Mercy
Gabasa of CDA Iloilo Extension office for
assisting us during the event.
• To all Micoop representatives coming from
Luzon, Visayas and Mindanao – Mabuhay po
kayo.

3. Co-operatives, NGOs and community
groups are being increasingly used
as development agencies by policy-
makers, because they are thought to
provide more accountable, effective
and equitable services in many areas
than public or private agencies.
Brett, E. A. (2008)

4. Cooperatives claim to
be dominated by
motivations based
on democracy and
self-sacrifice rather
than self-interest.
Brett, E. A. (2008)

5. According to Talent Culture
http://www.talentculture.com/why-accountability-in-the-workplace-matters/
The Workplace
Accountability Study
recently revealed that
82% of respondents
have no ability to hold
other accountable, but
91% of people rank
accountability as one of
the top development
needs they’d like to see
at their organization.

6. http://www.talentculture.com/why-accountability-in-the-workplace-matters/
When employees have no system of
accountability in place, things can very
quickly fall apart. This is why accountability
matters, and why a coop need to invest in it.
Recognition accountable
When employees fail
to meet up to the
demands of their job,
to recognize
employees who
do good work.

7. Accountability is a Culture Problem
Surveys say 91% of
employees who feel valued
at their job are motivated
to do their best versus 37%
of those who don’t feel
valued.
Low accountability
leads to mistrust;
leads to low morale;
leads to worker devaluation;
leads to low engagement; and
leads to low productivity.

8.  Links roles/identities, accounts of situations, resources and prescriptive
rules and practices as well as management decision processes
 Create actors and meeting places and organize the relations and
interactions among actors.
 allocate resources and empower and constrain actors differently and
make them more or less capable of acting according to prescribed rules
Accountability
Organizational
Arrangements
Answerability
Responsibility
 Revamp your culture

9. Revamp Culture
o Revamp culture so that
accountability fits within it.
o Make sure employees know that
they’ll be accountable for their
work by creating guidelines about
monitoring their productivity.
o Set weekly goals and deliverables
so that employees are motivated
to complete tasks on a regular
basis.
o Most importantly, make sure that
the officers are following their
own rules
“Perhaps the best way to
create a standup
organization is to lead
by example. Employees
should understand what
you expect of them, and
that the officers are holding
themselves to the same
high standard. Follow
through on your promises,
own your mistakes, and
even when it isn’t easy.
give feedback .
http://www.talentculture.com/why-accountability-in-the-workplace-matters/

10. Creation of a unitary culture in
which values and norms are shared
by all employees. The support and
leadership of top management is
crucial to create an organizational
culture that evokes a uniform
response to ethical issues
Chen, 1997

11. • It would appear that working in
organizational settings
characterized by a more compliant
cooperative form of management in
which people engage each other
freely in shaping the culture is more
conducive to promoting ethical
awareness and behavior.

12. Links roles/identities, accounts of situations, resources
and prescriptive rules and practices as well as
management decision processes
Creation of Ethics Committee
(Bylaws Template)
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
Monitor compliance with the Code of
governance and Ethical Standards and
recommend to the BOD measures to
address the gap

13. Create actors and meeting places and
organize the relations and
interactions among actors
An Ethics Committee is 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

14. Allocate resources and empower
and constrain actors differently
F. Ethics Committee
1. Basic Cooperative Course
2. Leadership and Values
Re-orientation
3. Conflict Management
4. Records Management
5. Basic Computer Program
Section 5. Rule 7 IRR. Training Requirements for the
Officers of the Cooperative. Officers of the cooperative shall
be required to undergo necessary training conducted by
cooperatives, Federations and/or other trainers or training
institutions duly accredited by the Authority.

15. MC NO. 2011-14
Standard Training Curricula
for Cooperative Officers

16. Basic Cooperative
Course
Board of Directors, Secretary, Treasurer,
Election Committee, Audit Committee,
Ethics Committee, Mediation and
Conciliation Committee, General Manager
Conflict
Management
Board of Directors, Ethics Committee,
Mediation and Conciliation Committee
Leadership and
Values
Reorientation
Board of Directors, Election Committee,
Ethics Committee, Mediation and
Conciliation Committee, General Manager
Records
Management
Audit Committee, Election Committee, Ethics
Committee, Mediation and Conciliation
Committee, Secretary, Treasurer
In 2011, MC 2011 - 27 Implementation of Training
Requirements for Coop Officers, out of 14 training curricula,
FOUR trainings are to be attended by the Ethics Committee

18. Social Audit of Cooperatives as of
December 31, 20___
Under Organization, the cooperative
is asked of the following:
Particulars YES OR NO
With Cooperative Code of Governance?
With Code of Conduct & Ethical
Standards?
Are all the key players of the cooperative

19. SAR’s Members’ Education
1. Provision of education to members
1.1. Presence of continuing education
program that contribute to human
development of members(values, principles,
ethics, practices, citizenship, livelihood/skills
training YES ( ) NO ( )
1.2. Implementation of education program

20. Financial Inclusion, Credit Surety Fund, Philippine
Financial Reporting system, Amendment to SCA,
CISA

21. Cooperative Performance Report Questionnaire
For the Year December 31, _____
Is the ethical-standards for
officers provided in the coop's
Code of Ethics?
Is the provision on conflict of
interest included in the coop's
Code of Ethics?
Ethics
Code of Ethics
provision for officers
Code of Ethics
provision on conflict
of interest 1
a. Functions, Duties and
Responsibilities Means of
Verification

22. Members
Are the ethical standards for
members provided in the Code
of Ethics?
Are the ethical standards for
members implemented? No
valid complaint/Valid
Complaint acted upon in
accordance with the Ethical
Standard
Code of Ethics
provision for
members
No valid
complaint/Valid
Complaint acted
upon in
accordance with
the Ethical
Standard
Means of
Verification

23. Inspection Instrument
Compliance with RA 9520
64. The Cooperative has a
Cooperative Code of
Governance and Ethical
Standard?
None: Period of compliance
12 months

24. • They guide behavior and stabilize
expectations.
• Help assure ethical
and accountable behavior
• How those polices are executed, and
the accountability arrangements.
• Have guidelines or a process to deal
with ethical issues
Importance of Cooperative Code
of Governance and Ethical
Standard

25. • Society in general will benefit as
employees and cooperatives are
better prepared to identify and
address issues in an ethical
manner.

26. Anecdotal vs.
Statistics
Performance of coops on
Social and Financial
Accountability

27. Particular AWM DE
The ethical-standards for officers provided in the
coop's Code of Ethics
3.10 SP
The provision on conflict of interest included in
the coop's Code of Ethics
3.07 SP
Having a governance and ethical standards in
the management and operation of cooperatives
3.14 SP
An Ethics Committee is appointed by the Board 4.78 EP
Monitor compliance with the Code of governance
and Ethical Standards and recommend to the
BOD measures to address the gap, if any
2.57 FP
3.33 SP
Code of Good Governance
& Ethical Standard
Legend: 4.21- 5.00 Excellent Performance (EP); 3.41- 4.20 Very Satisfactory Performance
(VSP); 2.61- 3.40 Satisfactory Performance (SP)
Source: Gaboy (2016)

28. 15. On Manual of Operations
MICRO SMALL MEDIUM LARGE TOTAL
4,857
75%
1405
65%
500
38%
85
12%
6,847
No manual of operations
No Cooperative Code of Governance and Ethical
Standards
No Policies and Procedures on Conflict
Management/mediation and conciliation
No succession plan
Absence of performance evaluation system
SEU, CDA (2015)

29. Common Findings
No. of Findings per
Category
Micro Small Medium Large
The cooperative has
no Cooperative Code
of Governance and
Ethical Standards.
174 101 21 2
CDA Dagupan (2015)

30. Accountability
• Accountability mechanisms should be
practiced in principles
• Sense of Accountability
• Measures of Accountability
• Sharing of Accountability
• Cooperative Accountability (Intra)
• Public Accountability
• Financial Accountability

31. Social Accountability
Particulars
Organization 15
Membership 35
Staff/Employees 10
Cooperation among
Cooperatives
10
Community and Nation 25
Network Alliance and Linkages 5
Total Points 100

32. Social Accountability
90 - 100 points : Outstanding
80 - below 90 pts Very Satisfactory
70 –below 80 points : Satisfactory
60 – below 70 points : Fair
below 60 points : Poor
For Medium & Large
Cooperatives
75 - above points :
Outstanding
65–below 75 points : Very
Satisfactory
50–below 65 points : Satisfactory
35–below 50 points : Fair
below 35 points : Poor
For Micro & Small

33. Name of Cooperatives 2013 DE 2014 DE
Nueva Segovia Consortium of Cooperatives 2 FP 2 FP
Sacred Heart Savings Cooperative 3 MP 4 VSP
Sta. Cruz Savings & Development Cooperative 5 EP 5 EP
Tubao Credit Cooperative 3 MP 3 MP
Government of Laoag Employees Development
Cooperative (GLEDCO)
1 PP 4 VSP
Calasiao Plant And Related Companies
Employees' Multi Purpose Cooperative
4 VSP 4 VSP
Lingayen Catholic Credit Cooperative (LCCrC) 3 VSP 2 FP
St. Lucy Multi Purpose Cooperative 2 FP 2 FP
Suyo Multi Purpose Cooperative 4 VSP 4 VSP
Fatima (Vigan) Multi Purpose Cooperative 1 PP 1 PP
San Joaquin Multi-Purpose Cooperative 3 SP 5 VSP
Sto. Domingo Development Cooperative 3 SP 3 SP
La Union Multi Purpose Cooperative 5 EP 5 EP
Kailian MPC 3 SP 3 SP
Overall 2.78 SP 3.14 SP
Satisfactory Performance (SP)
Gaboy (2016)

34. Social Responsibility
• The coop as a people’s
organization has a heavy social
responsibility that requires a
human and nationalistic stand,
discharge the functions and
render services in the most
professional manner, exercise
judiciousness and sincerity to
everyone and be responsive to
the needs not only the
membership but also to the
general public.

35. Performance Accountability
Particulars (Non Financial)
Organizational Aspect 24
Human Resource & Management 13
Members 11
Structure 4
System and mechanism 22
Social Aspect 4
Economic Aspect 22
Total Points 100

36. Performance Accountability
Particulars (Financial)
Profitability Performance 25
Institutional Strength 20
Structure of Assets 25
Operational Strength (Staying Power) 30
Total Points 22
Non Financial Points x 35
Financial x 65
100

37. Performance Accountability
ADJECTIVAL RATING Medium
& Large
Small Micro
Excellent Performance 91-100 81-100 75-100
Very Satisfactory
Performance
81-90 71-80 61-74
Satisfactory
Performance
71-80 61-70 51-60
Fair Performance 61-70 51-60 41-50
Needs Improvement 60 &
Below
50 &
below
40 %
below

38. Name of Cooperatives 2013 DE 2014 DE
Nueva Segovia Consortium of Cooperatives 3 SP 3 SP
Sacred Heart Savings Cooperative 3 SP 2 FP
Sta. Cruz Savings & Development Cooperative 3 SP 3 SP
Tubao Credit Cooperative 2 FP 2 FP
Government of Laoag Employees Development
Cooperative (GLEDCO)
4 VSP 4 VSP
Calasiao Plant And Related Companies
Employees' Multi Purpose Cooperative
3 SP 3 SP
Lingayen Catholic Credit Cooperative (LCCrC) 3 SP 3 SP
St. Lucy Multi Purpose Cooperative 2 FP 2 FP
Suyo Multi Purpose Cooperative 4 VSP 4 VSP
Fatima (Vigan) Multi Purpose Cooperative 2 FP 3 SP
San Joaquin Multi-Purpose Cooperative 4 VSP 4 VSP
Sto. Domingo Development Cooperative 2 FP 3 SP
La Union Multi Purpose Cooperative 4 VSP 4 VSP
Kailian MPC 3 SP 3 SP
Overall 2.78 SP 2.85 SP
Legend: 4.21- 5.00 Excellent Performance (EP); 3.41- 4.20 Very Satisfactory Performance (VSP);
2.61- 3.40 Satisfactory Performance (SP
Performance Audit Report
Gaboy (2016)

39. Where to get a copy of the Code of
Conduct and Ethical Standard?
• CEO/Manager
• Human Resources
• Compliance Officers
• Legal Services
• BOD Kit
• Ethics Committee
• Secretary

40. The Board Governance
The Board of Directors is primarily
responsible for the governance of the
cooperative. It is the governing body upon
whom the management of the cooperative is
vested. The administration and management of
the affairs of the cooperative is the primary duty
of the Board
Spell out as: strategic planning, direction setting and
policy formulation activities, including review and
redirection of unresponsive and obsolete policies

41. The cooperative governance framework
as exhibited in the operation
and management of cooperatives.
GA • General Assembly
BOD • Board of Directors
OO • Other Officers
MS • Management Staff
Source: Bitonio (2012)

42. • General Assembly
• Board of Directors
• Other Officers
• Management Staff
Source: Bitonio (2012)
GA
BOD
OO
MS
Flow of Accountability
Monitor management’s
implementation of these policies
and achievement of targets.

43. Got Ethics?
The Five Ps
of Ethical
Power?
The Power of Ethical Management written by
Ken Blanchard and Norman Vincent Peale

44. Purpose
The meaning and direction
of your life. It’s the driving
force of why you do what
you want to do.

45. Pride a healthy sense of
pride springs from a
positive self-image
and confidence in
one’s abilities. A
proper sense of pride
mixed with a good
dose of humility is the
balance we are
seeking.The “I” Institution

46. Patience
Patience is in short supply in
our culture. We live in a hyper-
connected, instantaneous world
where virtually anything we want
is just a click away. Blanchard
and Peale describe
patience as having a faith and
belief that things will work out
well, as long as we stick to our
values and principles.

47. Persistence This component of
ethical power is about
staying the course, staying
true to your purpose and
values. Persistence is
about commitment, not
interest. When you have
interest in something you
do it when it’s convenient.
When you’re committed,
you do it no matter what!
.

48. Perspective
All the other elements
of ethical power emanate
from the core of
perspective. Perspective
is about having the big
picture view of situations
and understanding what’s
truly important.

49. If you lose one in a war
its OK
If you lose 100 in a war
that’s something
If you lose your DISCIPLINE
You lost everything. . .
Source: Unknown

50. Ethical Sensitivity
• Ethical sensitivity is the ability of
an individual to recognize the
ethical nature of a situation in a
professional context (Shaub et
al., 1993).
• Behaving ethically depends on
the ability to recognize that
ethical issues exist, to see from
an ethical point of view.
• Cooperatives can construct
cultures that can exercise good
or bad influences depending on
their goals, policies, structures
and strategies (Brown, 1987).

51. Behaving Ethically
Behaving ethically depends on
the ability to recognize that
ethical issues exist, to see from an
ethical point of view. This ability
to see and respond ethically may
be related more to attributes of
cooperative culture than to
attributes of individual
employees.
Efforts to increase ethical standards and
decrease pressure to behave unethically should
therefore concentrate on the organization and
its culture.

52. • Distinguish between right
and wrong, take the time to
examine the situation and
rely upon your ethical
power.

53. Some notable examples include:
questionable decisions concerning
product design that sacrifice quality in
an effort to reduce cost, lack of concern
for environmental damage, and doubtful
standards affecting the safety of
employees, customers and other
stakeholders. While many factors
certainly contribute to problems such as
these, evidence suggests that they are
primarily caused by the lack of a
cooperative culture that explicitly
promotes and encourages ethical
decision making
Chen, et all, 1997
Business Activities Harmful to
Individuals, Communities and Society

54. Defined as the quality of being honest and
having strong moral principles; moral
uprightness

55. Trust Principle #1:
It Starts with Integrity
Leaders in high-trust organizations
must serve as living examples of
integrity and trustworthiness – and not
just at the office and during business
hours
Joel Peterson Chairman, JetBlue Airways. Stanford Business School

56. Trustworthy people are
trustworthy when it comes to
family, friends or colleagues.
Obligations to show respect,
to consider the welfare of
others, and to keep your word
don’t end when you leave the
office.
Joel Peterson Chairman, JetBlue Airways. Stanford Business School

57. Mistrust and politics are
expensive, time-consuming and
dispiriting. When a company has
a reputation for fair dealing, its
costs drop: trust cuts the time
spent second-guessing, worrying,
and lawyering. Trust strengthens
every part of any deal: its
durability, its potential profitability,
and its flexibility.

58. Integrity is a habit
Leaders who strive to do the right
thing under all circumstances know
that being trustworthy takes effort,
awareness and work. Trustworthy
leaders have generally worked long
and hard on their own character
building.
Joel Peterson Chairman, JetBlue Airways. Stanford Business School

59. They’re often quite intentional about fixing
things about themselves, about receiving
feedback, learning from it and making
changes. In the same way a mechanic keeps a
car in top running condition, high-trust
individuals monitor and tune their behavior,
always striving to do better by team members
and customers alike.
Integrity is a habit
Joel Peterson Chairman, JetBlue Airways. Stanford Business School

60. Good member relationships
are based on integrity and trust,
and it is against the cooperative’s
policy to engage in unethical or
illegal activity to win or keep
business. Officers are expected
to act in an ethical manner at all
times when performing job and
conducting business matters.
Joel Peterson Chairman, JetBlue Airways. Stanford Business School

61. Anyone wanting to build
a high-trust organization
must start by looking in the
mirror. Personal character
is foundational
for interpersonal trust. and
organizations in which
leaders have integrity stand
a much better chance of
building trust from the top
down, and bottom up.

62. Story of
CEO
Morgan
https://inspirationalstories.quora.com/A-reply-from-CEO-of-J-P-
Morgan-to-a-pretty-girl-seeking-a-rich-husband
http://www.slideshare.net/jobitonio/ceo-morgan

63. Integrity
• Managing for organizational integrity
• Moral integrity
• Personal integrity
• Professional Integrity
• Procedural integrity
• Safeguarding Integrity
• Institutional integrity

64. • Jurisdictional Integrity
• Scientific and Political Integrity
• Quality and integrity of the knowledge
• Intellectual integrity
• Structural integrity
• Ecosystem integrity
• Environmental integrity
• Constitutional integrity

65. How do we
uphold
accountability and
integrity in
cooperatives
through policies
and decision
making?

66. • Powers, functions
and responsibilities of
all officers, key
management staff
should be included in
the Code of
Governance and
Conduct for
Cooperatives
Conclusion

67. • Also to include
members’ benefit
such as: voting
right, power of
inspection, right to
information, right
to ISC/PR,
appraisal right of
their share capital,

68. • The Code to include
standard of personal
conduct and dealings,
rights, and privileges

69. • Efforts to strengthen the
ethical conduct of employees
must occur at the institutional
level with focus on providing
a cooperative culture that
promotes and encourages
ethical behavior and allows
employees to “voice” their
concerns

70. • Use of suggestion boxes and
Opportunity For Improvement (OFIs)
programs. Encouraging employees to
submit suggestions for improvement
provides an opportunity for
management to involve staff in
decision making and problem solving.

71. • Facilitating continuous quality
improvement through better
communication among
workers and managers.
(meetings, feedback
mechanisms,etc).

72. • Cooperatives employing a balanced
mix of financial and non-financial
factors including job satisfaction,
control and authority, opportunities for
continuous education and personal
growth, and peer recognition for goal
achievement. The reward structure
can also be used to encourage
concern for others which stimulates
ethical behavior.

73. • Treating co-workers as
customers implicitly
emphasizes the need to
respect one’s co-workers and
therefore may increase
worker’s sensitivity to ethical
issues arising out of
authority/subordinate work
relationships and work-place
safety

74. Produce
information
that decision
makers need
and use
in policy
decisions

75. Investigation
• To cooperate fully with any
appropriately authorized
internal or external
investigation, including but
not limited to those involving
ethical issues or complaints
of discrimination or
harassment. Never withhold,
tamper with or fail to
communicate relevant
information in connection with
an investigation.

76. The Ethics Committee shall conduct
the initial investigation or inquiry,
upon receipt of complaint involving
violations of the Coe of Governance
and Ethical Standard

77. Information should be
undiluted and reliable

78. Protecting Stakeholder
• Each of us has a moral, legal and ethical
obligation to protect confidential information
that, if improperly disclosed, could be harmful
to our members, peers or stakeholders. This
includes data such as member financial
information, employee health or other
personal information, non-public corporate
financial data, legal facts and strategic
information and plans.

79. • Exercise particular care to
protect the premature
disclosure of information
that could have a
competitive, financial or
other material impact on
the coop

80. A Safe, Healthy Workplace
• To ensure equal employment opportunity
without discrimination. The coop shall recruit,
hire, train, and promote individuals and
administer all personnel actions, without
regard to race, color, religion, creed, age, sex,
sexual orientation, disability, citizenship,
national origin or ancestry, martial status,
status as a disabled veteran, genetic
information or any characteristic protected by
applicable law.

81. • Provide employees with a
healthy, safe and productive
work environment. This
environment extends beyond
the physical surroundings and
includes how we treat each
other.

82. The coop places great value on
maintaining and supporting its diverse
workforce, on creating a workplace
characterized by civility of speech and
behavior and on welcoming, accepting
and rewarding each person according to
his or her contribution to coop’s goals.

83. Workplace violence policy applies to
violent or threatening conduct of any kind,
whether it is directed against a employee,
member or outside party and whether it
occurs on property.

84. Conflicts of Interest
Avoiding Conflicts of Interest.
Employees are expected to uphold
the coop value of integrity in all
business dealings. This includes
avoiding conflicts of interest on the
job.

85. Compensation of the Board is
subject to the approval of the general
assembly or if the by laws so provided
except that no additional compensation
other than per diems on the first year of
existence and in the preceding calendar
year when a cooperative reported a net
loss.

86. Accepting Gifts
• The giving or receiving of
excessive gifts can lead to
perceived obligations that
may be inappropriate or
may result in an actual or
apparent conflict of
interest in the workplace,
which must be avoided.

87. • No gift should be accepted if
there is a possibility that it would
jeopardize coops' reputation.
This policy extends to includes
member-owners, suppliers,
investors and rating agencies that
do business with or have an
interest in coop.

88. • It is your responsibility under the
Code to avoid situations in which
loyalty to coop could be
compromised. Determining whether a
particular situation would create a
conflict of interest, or an appearance
of a conflict, may require the analysis
of the specific factual circumstances
and the consideration of many
factors.

89. Bribes, Kickback and
other Illegal Payments
• No coop funds or
assets may be paid,
loaned or disbursed
as bribes, kickbacks
or other illegal or
unethical payments.

90. Related Party Business Dealings
Highly critical to notify your manager of any
business relationship or proposed business
transaction that the coop may have with any
company in which you or an immediate family
member has a direct or indirect interest or from
which you or an immediate family member may
derive a benefit, if such a relationship or
transaction might give rise to a conflict of interest.

91. Fair Dealing
• Coop to deal fairly with all third
parties including members, suppliers,
financial institutions, competitors and
employees. When transacting
business, no employee should take
unfair advantage of anyone through
manipulation, concealment, abuse of
privileged information,
misrepresentation of material facts or
any other unfair practice.

92. Financial Records
• The coop’s accounting records must be
complete, accurate and in reasonable
detail. These records include books of
original entry and other financial
information used for internal
management’s decision-making and
external reporting.

93. • The underlying transactions must
be properly authorized and
recorded on a timely basis in
order to permit preparation of
financial statements in
accordance with generally
accepted accounting principles
and to maintain accountability of
assets.

94. • All funds and assets must be fully
and properly recorded on coop’s
books. The coop has to establish
internal accounting controls and
records management policies to
meet both legal and business.
Maintain and adhere to these
controls and policies.

95. Accounting and Control Irregularities
• The coop is committed to comply with
applicable securities laws and generally
accepted accounting principles.
Accordingly, employees have the
responsibilities to report any suspected
instance of fraud or other irregularities that
involve management or other employees
who have a significant role in coop’s
accounting, internal control or audit
matters.

96. • Report immediately any
information regarding suspected
fraud or irregularity in accounting,
internal accounting controls or
auditing matters to the Audit
Committee or to make
anonymous reports

97. • There must be a policy on
transparency whereby books of
accounts anybody minutes of
meetings are properly kept and made
accessible to members and regular
financial reports are religiously
prepared and made known to
members and other parties as
authorized by law.

98. Commitment
• Recognizing the importance of good
governance, and good conduct is a
necessary component of what constitute a
sound strategic business, thus, the
officers, staff and members commit to
follow standard provided in the Code of
Conduct and Ethical Standard.
• Include in the Oath of Office

99. Offenses &
Violations

100. An officer should not be
delinquent in his/her loans

101. In attending meetings –
The number of hour/s
Late should be
deducted prorate from
the Officers’ Per Diem

102. Do not wear slippers, shorts and
sleeveless shirts during
meetings

103. Wear Uniform

104. No Sleeping During Meeting

105. No Text and Call during Meeting

106. No to
Excessive
Calls during
Meetings

108. No to Nepotism

109. No to Abuses of Resources
1. Remuneration
2. Transportation
3. Communication
4. Travel
5. Training
6. Entertainment

110. No to Commissions
(kickbacks)

111. No to Board
interference in
management duties

112. No to Strongman
leadership

113. Non to Excessive spending for
non-earning assets (building,
cars, computers etc.)

114. No to Falsifying financial
information

115. No to incomplete
and false records

116. No to overspending

117. No to irregular
external audits

118. 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

119. 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.

120. 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.

121. 5 S
• Smile
• Sit
• Sleep
• Snore
• Sign the voucher

122. 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 therefrom to the Cooperative, members
and other persons.
Liabilities of Directors, Officers
and Committee Members.

123. 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.
Liabilities of Directors, Officers
and Committee Members.

124. 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