CHAPTER I

INTRODUCTION

Background of the Study

Cooperatives are business enterprises that are owned by a group of individuals working

for same benefits. Cooperative go a step further by organizing cooperation, sharing of resources

and mutual return of labor. The cooperatives find its roots in multiple influences and locations

worldwide. Cooperatives at the end of 20th century revised its accounting system for the purpose

of recognizing the growth of economic importance of cooperatives (Becker, 2010).

According to the study of Dave Grace and Associates 2014 cited in Global Census on

Cooperatives which focused on gathering data so that future research can be conducted on

impact of cooperatives in region, cooperatives globally are providing value to their members.

Cooperatives also make up in Social Progress Index which includes human needs, opportunities

and access to knowledge.

Cooperative researches have been conducted in universities, institutes and co-op

organizations. In countries such as India, Japan and Korea national societies for co-operative

studies were organized to coordinate research efforts but their focus had been mostly domestic

and there is little exchange among them except for Japan and Korea. The agricultural economics

had been the predominant discipline since most of the region had been relied on agriculture, but

the industrialization needed to involve other disciplines such as management and marketing,

sociology, history, finance and so on in co-operative research. Multipurpose agricultural co-ops

(Japan and Korea) provide members with functions that cover all aspects of farmer’s life; from

supply and marketing to credit and insurance, from hospitals and clinics to nursing homes and

funeral services, from housing and property management to filling stations and propane gas

supply etc. This has help promote rural development through providing infrastructure for
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agriculture and farmer’s daily life, but it could still not solve the structural problems of

increasing deficits in economic functions offset by surpluses in financial ones (Akira Kurimoto

Director, CCIJ, 2011).

In the Philippines, Cooperatives play vital role in improving economic and social status of

its members. The declared purpose of the law governing cooperatives (Republic Act 6938, also

known as the Cooperative Code of the Philippines) is to foster the creation and growth of

cooperatives. Cooperatives are classified into four - micro, small, medium and large.

Cooperatives in the Philippines focuses on the less-privileged members of our society and are

tasked to put them in a socio economic mainstream so that they will become an active player in

the nation building. According to Dr. Castillo, cooperatives provides technical assistance

program. It would bring a lot of economic benefits to its members and the country as well (The

Philippine Star, 2015).

In Pangasinan, lot of cooperatives are established, some are not profit-oriented but non-

profit service oriented cooperatives which aims to help employees and other beneficiaries to

have a better life. Calasiao Plant Cooperative in Calasiao, Pangasinan is one of the cooperatives

which is non- profit oriented.

Calasiao Plant Cooperative is established in 1987 as non-profit employees’ credit

cooperative. The Calasiao coop is duly registered with the Cooperative Development Authority

(CDA), a government regulatory agency.

The cooperative has objectives to: 1. Promote value of saving for the future among

members 2. Help members avail of credit facility with very low interest rate to finance their

family 3. To keep employees from being victimized by usurious lending including “5-6” and

other lending groups that charge high interest.

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The Calasiao Plant Cooperative has a vision of being a model and world-class

cooperative committed to provide excellent financial services to its members for better quality

of life, and has a mission to achieve its vision, the cooperative commits to promote the value of

saving for the future, to use money productively to secure financial stability of the cooperative

thru good governance and product management of its financial resources and lastly to show care

and concern to its members, employees and the community.

Being a member of the cooperative can save money without noticing as it is deducted

thru payroll. The savings will also earn high interest, which is much higher than that of a bank

or other similar institutions.

One of the offers of the Calasiao Plant Cooperative is the Multi-Purpose Loan for

employees with less than (1) year of regular service. The maximum loanable amount is based

on their available Net Disposal Income (NDI) and the maximum payment term is one year only.

It is required to have a 3 co-makers with at least 1 year in service. Second is for employees with

at least 1 year up to 3 years in regular service, the maximum loanable amount is also based on

their available Net Disposal Income. The maximum payment term is 3 years only. One co-maker

is required for every P25 000 but minimum of 3 co-makers.

Calasiao Plant Cooperative is a multi-awarded Cooperative for its outstanding

performance duly recognized by the Cooperative Development Authority with the registration

number 9520-01000143.

Multi-Purpose loans really serve as a way of improving in lives of a cooperatives’

members, but it is normal for it to encounter several problems and challenges.

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With this study, it intends to proposed measures/intervention or recommendations to

improve the utilization of multipurpose loan of members of Calasiao Plant Cooperative and

improve their socio-economic status.

Conceptual Framework

The researchers utilized the Input-Process-Output Model. This model is scrutinized as a

process of a series of processing elements connected by input and output. The information flows

through a series of activities based on a set of rules. Flowcharts and process diagrams are

commonly used to represent the process.

This descriptive survey research through a questionnaire serves as data gathering

instruments. The process includes questionnaire formulation, floating retrieving and tabulation.

Paradigm of the Study

The paradigm is organized in a way that states how the study is regulated and search

objectives were achieved. Figure. 1. Paradigm of the study was reflected in the Input Process

Output Model.

The first part of the paradigm of the study is the input which reflects the variables to be

measured particularly those mentioned in the research title, majir problems and sub problems.

INPUT box provide demographic profile of the member of Calasiao Plant Cooperative which

includes age, gender, and years as member and the difference between the effects of multi-

purpose loan to their socio-economic status.

PROCESS box indicates survey questionnaire to the mentioned members of Calasiao

Plant Cooperative. OUTPUT states the propose measures that can be recommended to improve

utilization of multi-purpose loan.

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Figure 1
Paradigm of the study
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Statement of the Problem

The study aims to determine the effects of multi-purpose loan to the members of Calasiao

Plant Cooperatives.

Specifically, it seeks to determine the following sub-problems:

1.) What is the profile of the members of Calasiao Plant Cooperative who availed multi-

purpose loan in terms of:

a. Age

b. Gender

c. Years as Member

2.) What are the effects of multi-purpose loan to the members of Calasiao Plant Cooperative

in terms of:

a. Social Status

b. Economic growth

3.) Is there a significant difference between the effects of multi-purpose loan to the members

of Calasiao Plant Cooperative along with their profile?

4.) Based on findings, what proposed measures/interventions can be recommended to

improve the utilization of multipurpose loan of members of Calasiao Plant Cooperatives and

improve their socio-economic status?

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Hypothesis

That there is significant difference between the effects of multi-purpose loan to the

members of Calasiao Plant Cooperatives along with their profile.

Scope and Delimitation

This study is focused on the effects of multi-purpose loan of Calasiao Plant Cooperative

to its members. The respondents will be 60 members of the actual number of members of

Calasiao Plant Cooperative who are willing to answer questionnaires. This study used

descriptive method of survey, with questionnaire as the main instrument to gather the needed

data.

To ensure high percentage of questionnaires retrieval, the researchers personally conducted

and assisted the respondents. The data acquired were tabulated and analyzed using frequency

counts and percentages.

The study is also restricted to the agreement that the researchers have made with the

management of the Calasiao Plant Cooperative to ensure confidential information were secured.

Lastly, the data collected were acquired and limited to members willingly accepted our

requests to answer and provide insights to our questionnaires.

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Importance of the Study

The achievement of this research is important not only to the researchers but also

contributes for the benefit of the following:

Calasiao Plant Cooperative. This benefits the management in determining the effects

of multi-purpose cooperative, its effectiveness and necessary improvements to its members.

Members from Calasiao Plant Cooperative. The study will help in terms of

broadening the member’s knowledge about the effects of multi-purpose loan in their socio-

economic status.

PhilCST College of Accountancy and Business Program. This study helps the

College of Accountancy and Business Programs in terms of giving additional knowledge about

the knowledge, effects and impact of multi-purpose cooperative to society, economic growth

and its members.

PhilCST College of Accountancy and Business students. As an accountancy student,

it helps widened knowledge about multi-purpose loans from cooperative. Also, it developed

leadership skills and competencies and improved time management skills.

Future researchers. Future researchers may consider and may address the effectiveness

of multi-purpose cooperative employed by Calasiao Plant Cooperative in Calasiao, Pangasinan

as another line of study or may serve as a guide and basis for their future researches.
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Definition of Terms

For the better understanding of the study, the researchers gave several terms that were

defined conceptually and operationally as used in the study.

Cooperative. Autonomous association of persons united voluntarily to meet their

common economic, social and cultural needs and aspirations through jointly owned enterprise.

Cooperative Development Authority. Government agency which promotes viability

and Growth of cooperatives in the Philippines as instruments of equity, social justice and

economic development.

Economic growth. Increase in market value of assets and income.

Multipurpose Loan. A loan which provides financial assistance to qualified members

of a cooperative.

Social Status. Relative level of respect, honor and deference accorded to people, groups

and organizations in the society.

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CHAPTER II

REVIEW OF RELATED LITERATURE

This chapter helps in expanding knowledge about multipurpose loan cooperative and its

effects to the members to their socio-economic status, determining potential problems of

cooperatives to their members vice versa and possible solution which will serve as a basis for

recommendation. This chapter focuses on studies and literature related to the study which helps

in familiarizing the relevant information about the study. The data collected are from other

research papers, articles, journals and internet to help the study provide findings a solutions.

RELATED LITERATURE

This section presents several articles, journals and published materials that lend

direction to the readers.

FOREIGN

In recent decades, cooperatives have greatly returned. Cooperatives can do make big

contributions to development of goals. They can generate income for their members and offer

many benefits. Cooperatives need to enhance their generation of income and secure livelihood

for the betterment of their members and society.

According to Sarah Alldred 2013, the benefits of cooperatives in terms of social and

economic can have much more impact, but they need support from the development community

to reach their potential. Cooperatives are not the whole answer to global poverty and economic

injustice, but it is certainly part the answer, because they are part of movement sharing a set of

global values and principles.

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Because of renewed attention, there will be challenges to cooperatives. The primary role

of cooperatives is to meet the needs and interests of their members. This is often viewed as an

instrument to achieve the goals set by external agencies, such as governments and NGOs, and

blamed for not reaching the poorest. It is vital to respect cooperatives and should not be blamed

because they are just an enterprise and not banks or other financial institutions owned by

government to reach out the poorest and they have a limited scope of operations.

Soft skills owned by coastal communities’ shows that fishermen have the motivation to

work hard. This means that the communities of South Sulawesi have a high degree of desire to

change their lives by earning a living at sea. However, the strong desire is not supported by

higher level of discipline. Most of the people residing at coastal areas are still not focused in

making fishing as their basic livelihood. Even majority of people who live in coastal areas have

a side job as farmers. Having lack of discipline in their work of fishing community has an impact

on the low level of independence and lack of job and results to meet their daily needs

According to Salamun Pasda 2019, for the sustainability of the fishermen’s business, the

existence of local fishermen cooperative institution during this time in coastal area of South

Sulawesi becomes very important. Fishermen cooperatives as financial institutions can provide

access to capital and marketing of products to the fishermen. However, the existence of

cooperatives that really help fisherman is still not enough. Unawareness of cooperative to those

who live coastal areas is still lacking.

People who live in coastal areas mostly have high motivation to work hard but they lack

level of discipline, independence and responsibility. Because of the unawareness of the

existence and concepts about cooperative, the people in these areas are still in poor category.

The level of poverty is like a living in vicious circle of endless poverty. The said circle is a
 12

theory popularized by Nurkze. In this theory, the cause of poverty is not only caused by lack of

development in the past but also to the obstacles to future. The government must take actions in

making the fishermen aware to cooperatives since these organizations can reach out the poorest

that the government cannot.

According to Soren Movsisyan 2013 cited in The Role of Cooperatives in development

of agriculture in Armenia, one of the main pillars of economy of Armenia is its agricultural

sector, which resulted to formed few agricultural cooperatives. During, Soviet times in Armenia,

norms and volume of production were set only be government agencies. But after Soviet Union

collapsed, necessary bargaining power weakened, and the cooperatives movement started to

emerged and resulted into registration of cooperatives where almost 50 percent operates in

agricultural sector.

Since, agriculture is the biggest employee of Armenia, the role of cooperatives becomes

more crucial and needs continuous improvement. Agricultural cooperatives main purpose is to

benefit members, it helps market products and secure supplies in competitive prices. It also

provide its members ability to borrow money with no interest rate.

In some conditions, social aspects play more important role and cooperatives is obliged

to consider the interests other than those of its members (interest of other cooperatives and

subsequent members) or non-financial interest (e. g. education). Its role in social economy

development also increases as there is growing unemployment, gaps between people, cultural

partition and social exclusion.

Throughout history, cooperatives are slowly making impact and will actually have

potential to improve Armenia's agricultural and economic development (Movsisyan, 2013).

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According to Wilson Majee and Ann hoyt 2011 cited in Cooperatives and Community

Development: A perspective on the use of Cooperative in Development, the history of

cooperatives tend to infer that cooperative principles and practices is deeply ingrained in

American culture. Today, cooperative can be found in most of the countries. Cooperative in

United States operates in almost every sector in economy. It assumed that cooperatives are

independent, owned by members, meet members’ needs, democratically controlled and

capitalized by members. Cooperatives features social organizations such as, norms, social trust

and networks. This enables members use their knowledge of each other and to engage in

monitoring their conduct of business. Cooperatives, in addition to financial capital, also draws

social connections with other members for both social and economic growth.

The study suggested that cooperatives may be an option that lifts groups, rather than

individuals out of poverty as a result of their ability to create social capital for the cooperative

members. Through training and interaction, members acquire skills that increases their ability

to work, confidence and participation in business and social activities, it also provided an

opportunity for all members to do well to the extent that they participate in the cooperative.

Cooperatives having an open membership, it build economic activities that reach beyond

familial and social networks. Because they need more capital to be successful, they essentially

create bonds among numerous small social networks that share a similar product or service need.

It’s the bonding of small networks unit that creates an opportunity unity for group members to

gain access to bridging social capital that is not available to them as individuals or as small

isolated networks.
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Cooperative have proven useful for promoting interest of the most needy in the society.

Cooperatives have the potential to direct more people from low income communities to socio-

economic development that other business institutions in the community.

Cooperatives’ existence and development around the globe and in almost all the sectors

are at its most nowadays. This also includes agriculture, food, finance, health care, marketing,

insurance & credit. A cooperative is an independent association of persons who share together

the same purpose or interest voluntarily to meet their common economic, social and cultural

needs and ambitions through a jointly owned and self-ruling enterprise.

Cooperatives are free will organizations, unconcealed to all persons who are able to use

their services and are willing to take responsibilities as members, without gender, social, racial,

political or religious judgment or discrimination. As a democratic organization operated and

controlled by its members, who are acting participative in setting responsibilities and decision

making. Men and women elected as representatives are accountable to the membership. In

primary cooperatives, members are entitled to equal voting rights as one voting right is to one

and cooperatives at other levels are systematized in a democratic manner.

Members contribute fair and democratically control the capital of their cooperative. At

least partly of that shared capital is a common property of the cooperative. Members usually

receive definite compensation, if any, on capital subscribed as a condition of being as a member.

Members of the cooperative apportion surpluses for any or all of the following reasons:

development of the cooperative, possibly by emplacing up reserves, part of which at least would

be impossible to separate in benefiting members along with their transactions with the

cooperative and assisting other activities accredited by the membership.

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Cooperatives are autonomous, self-help organizations controlled by its members. If the

cooperative enters into agreements with other organizations, included herein is the government,

or to raise capital from external sources. They do this in order to ensure and preserve democratic

control by their members and maintain their cooperative autonomy and independence.

Cooperatives give support in education and training for its members, elected representatives,

managers, and employees. This is for the reason that they can give contribution to the effective

development of the cooperative. They impart information to the general public particularly

young people and opinion leaders, about the nature and benefits of cooperation. Cooperatives

serve their members at most effectiveness and strength by working as one through local,

national, regional and international structures.

Cooperatives work to sustain development of their communities through policies

approved by their members. It assumes need based community-related services e.g., drinking

water, health care, sanitation, education, women empowerment, and other community related

programs. A cooperative is a central rallying point in the village and therefore it performs a lot

towards the social responsibility and such activities bring the general community closer to the

cooperative (Kumar, Wankhede, Gena , 2015).

Around the world, cooperatives are increasingly being recognized for their invaluable

roles in socio-economic development. This acknowledgement has translated into countries and

development organizations taking proactive steps towards grounding the cooperative movement

so as to maximize their socio-economic benefits.

The cooperative movement societal and profitable activity is designed in formulating

and developing cooperatives consumers, credit, producers, supply and marketing, and housing

cooperatives. The cooperative movement expanded in Great Britain where consumers’

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cooperatives started to emerge in 1769. The movement shouldered broad dimensions in the

country during the first half of the 19th Century when the context of the accelerated growth of

capitalist production after the industrial revolution.

The cooperative conformation of organization in Africa has its connecting structure to

pre-colonial Africa although the modern form of internationally recognized cooperative

organizations were introduced by the colonial powers. Although the rationale that underpins the

adoption of cooperatives in Africa is the same to those recognized internationally; this has not

been the case in the executions of cooperatives on the continent. The re-examination gives

hypercritical insights into factors that affect cooperatives and on how these can be adopted to

enhance the success of cooperatives in contemporary Africa. Regardless of all the objection and

barriers towards cooperatives, they could be instrumental in maneuvering more than one

challenge including indigence, unemployment and hopelessness experienced by many across

the continent of Africa (Okem, 2016).

A cooperative society represents an attempt by the poor to protect themselves from being

oppressed by the rich. A cooperative society is a voluntarily associated of persons who join

together to safeguard their interests. It is based on the principles of self-help, equality,

democracy, and freedom.

It is an organization where the members’ voluntarily contribute on equal basis to further

their common interests. Cited in the International Labor Organizations that a cooperative

organization is "an association of persons, usually of limited means, who have voluntarily joined

together to achieve a common economic end, through the formation of a democratically

controlled business organization, making equitable contributions to the capital required and

accepting a fair share of risks and benefits of the undertaking.

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Some attribute of a Cooperative are voluntary association, religious and political

neutrality, and separate legal entity. Also there are many good qualities of cooperative, one is

the ease of formation in which legal formalities are very few and simple, open membership

meaning any person having a common interest can become a member of it, limited liability in

that every member is limited or liable only up to the extent of his share in the society's capital,

and democratic management that every member has an equal vote or voice irrespective of his

capital contribution (CB Gupta 2012).

According to Ivana Catturani and Leanne Cutcher 2015 that financial credit co-

operatives are institutions whose members combine their deposits to create a local loan pool.

Members benefit from shared standard of reciprocity in this model of savings and loans that is

underpinned by the notion of mutuality. Financial co-operatives based on the nineteenth century

Raiffeisen principles of limitless liability and bonds of association can be found in over 100

countries across the globe. Financial co-operatives all share a belief that people have the right

to affordable, reliable and accessible financial services.

Catturani and Cutcher added that financial credit cooperatives pool their members'

savings deposits and shares to finance their own loan portfolios rather than rely on outside

capital. Members benefit from the fact that any surpluses are returned to the members in the

form of higher returns on savings, lower rates on loans.

Cooperatives operate under a guiding set of principles that include: open and unforced

membership, democratic control, non-discrimination, services to members, equitable

distribution of surpluses, financial stability, on-going education to promote thrift and wise use

of credit, co-operation among co-operatives, and social responsibility. These principles align
 18

very closely to the seven co-operative principles outlined by the International Co-operative

Alliance (Catturani, Cutcher 2015).

Cooperatives differ from other organizations since they mostly rely on the economic

cooperation of their members. The focus on participation is assumed to have come at the cost

of fast decision-making. Due to the individual costs of cooperation theories and institutional

models suggest that cooperatives may be inherently fragile. This established a conclusion to

some researchers, that an organization that require cooperation may be at higher risk of folding

and organizations that rely less on cooperation may be more stable. Therefore, if cooperatively

owned or managed businesses do in fact require higher levels of cooperative behavior than

hierarchically managed firms, attracting for members and maintain the cooperation must be

done in order for it to function. The research also theorized that successful consumer food

cooperatives will exhibit greater generalized cooperation than conventional grocery stores.

Cooperative customers exhibit a higher base rate of cooperation than similar

conventional food shoppers, and this relationship holds even when taking demographic factors

such as income, education, and age into account. Cooperatives also have a tendency to cause

positive social externalities, particularly in rural and developing areas. The researchers also

concluded that when successful, consumer food cooperatives exhibit greater levels of

cooperation than similar traditional businesses.

Studying the dynamics of human cooperation is also provided with the unique

organizational framework of cooperatives. Only few researchers have used human cooperation

to understand organizational relationships and dynamics.

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Cooperatives mostly rely on several domains, each of which contains s social dilemma

subject to free-riding. Each of these areas creates additional opportunity for free-riding and a

potential weakness for co-op organizations (Tremblay, Hupper, Waring SocArXiv, 2019).

Cooperative businesses is a type of association that is controlled and owned by its

members. Also known as co-op, cooperatives are organized for the purpose of improving the

bargaining power of its individual members and the product or service quality provided by the

members. Cooperatives also aim to diminish costs incurred during the production process, to

provide competition to larger companies with more extensive financial wealth, to expand

opportunities in the market and take advantage of them, and to acquire products and services

that would otherwise be unavailable because for-profit companies see them as unprofitable.

The main purpose of cooperatives is for people to join with its benefits. They will have

the ability to make a large purchase in a group, improving the members bargaining power as an

individual and to become enabled feeling like they are part of a meaningful company.

How much equity the member has contributed will be the base to determine ownership

in the cooperative. This is a unique ownership structure since it can be based on anything,

including how much of the cooperative business’s services and products a member purchases.

The equality involved in the cooperatives’ management and its democracy is one of its

greatest advantages. Its members can have all their needs met without having to defer to a single

person which makes this organization a lot more stable than other businesses of the same type.

Also an individual member has just a single vote which gives them equal footing on the business

regardless of the shares they own. Each member’s liability is also limited to his or her own

investment. No business exists without disadvantages, and one drawback of a cooperative

business is its fewer incentives for large investors which makes it hard to appeal wealthy ones
 20

since they know the size of investments will not determine the size of their influence. One major

disadvantage of a cooperative business is the time they will spend on decision making since all

members must be involved (Nicky-LaMarco, 2018).

LOCAL

The agricultural cooperatives are effective partners in technology promotion and rural

development of which Development workers at the Philippine Rice Research Institute

(PhilRice) reported. Agricultural cooperatives were recognized as important vehicles in

promoting cost-reducing and high-yielding rice and rice-based farming technologies through

the project Empowering farmers’ cooperatives through sustainable promotion of high yielding

rice production technologies for progressive rural economy.

According to Christian Flor Guittap, having unified action to become viable while

helping individual members improve is what makes agricultural cooperatives unique. It is

certain that the farmer-members will adopt it in suitable manner when the cooperatives are able

to prove that a specific technology is efficient.

PhilRice partnered with agriculture cooperatives in Nueva Ecija and Pangasinan for the

promotion, evaluation, and adoption of technologies to help their farming communities in 2014.

The partner-agricultural cooperatives are Parista Barangay Defense System Multipurpose

Cooperative (PBDS-MPC) in Lupao, Nueva Ecija. According to Guittap, during their discussion

with PBDS-MPC, they found that the cooperative practices conventional farming such that its

members do not use quality rice seeds and other technologies, and apply fertilizers without

assessing their soil needs. To address these problems, the project members began a technology

demonstration farms and conducted season-long training programs, field days, farmers’ forum,

and training for the cooperative’s farm advisors. Of the 59 farmer-members of PBDS-MPC who
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joined in the project, 78% adopted the technologies promoted by the project in 2015 wet season

(WS) and 2016 dry season (DS). According to Joel Pascual, the percentage equates to high level

of adoption. In 2016 DS, 73% of the participating coop-members achieved an average yield

increase of 0.5 t/ha while 22% of farmer attained more than 1 t/ha increase in yield. The use of

certified seeds, Minus One Element Technique (MOET), leaf color chart (LCC), integrated pest

management (IPM), and rice-based farming systems are what the farmer-members of the coop

adopted various technologies A farmer-cooperator Ferdinand C. Orate said, the harvest

increased by up to 40% when he tried using the new variety NSIC Rc308 endorsed by PhilRice

through the cooperative. He also tried planting cash crops such as saluyot, string beans, and okra

in the banks and dikes to sell in the Lupao market.

According to project lead Dr. Aurora Corales, the partnership with cooperatives

contributed to the empowerment of farmers and their organizations toward community welfare.

The model may serve as a guide in promoting location-specific rice, rice-based technologies to

improve farmers’ lives and implementing developmental activities, she added.

In agricultural and food marketing, efficiency is one of the most important goals. Food

security is directly affected, particularly the economic and physical access to food of

households. The availability, accessibility and affordability of adequate food to consumers can

be facilitated by efficient and effective flow of food from production point (farmers) to

consumption point (consumers). Every market actor (e.g. farmer, market intermediaries and

consumers) in an agricultural marketing system plays a key role in performing marketing

functions and providing marketing services that contribute to achieving efficient marketing

process at different sub-markets (e.g., farm, assembly or wholesale, and retail market). The

marketing services such as transport, processing, storage, grading, packaging, wholesaling and

retailing are often provided by market intermediaries like traders, assemblers, processors,
 22

wholesalers, truckers and shippers, marketing and bargaining cooperatives, and retailers. These

services normally entail costs, risks, and payments for the managerial services and risk-taking

done by the market intermediary, which often become a source of market inefficiencies. The

inefficiencies even become more likely as more market intermediaries are involved in

performing the marketing functions.

All the key actors in a market chain can be benefited by marketing efficiency. It is

achieved when the resulting marketing costs (including losses) are minimized and the profits or

returns of market intermediaries are reasonable – that is, the marketing margin is just enough to

cover the costs of marketing services and there are no unreasonable profits generated by the

market intermediaries (Pabuayon et al. 2013). In this case, the marketing margin should not be

lower than the marketing costs and to what the market actors would otherwise get from the

alternative use of their capital and labor. Otherwise, they might just shift to other economic

activities if there will be no incentives for them to provide the marketing services. The higher

prices received by farmers, the affordable food products or lower prices paid by consumers, and

the profitable business operations and more investments for market intermediaries are some of

the indicators of an efficient marketing system.

The several issues and challenges that indicate inefficiencies that the marketing system

of agricultural commodities faces in Philippines, which are becoming even more challenging as

the economy approaches the ASEAN economic integration this 2015 are: (i) the low prices

received by farmers for their produce; (ii) the multiple layers of market intermediaries in

agricultural supply chains; and (iii) the little access to markets (e.g., institutional and export

markets). Of all the market actors in the agricultural marketing chain, the small farmers are often

the most affected by these problems.

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As early as 1970s, organization of small farmers into self-help groups like farmers’

associations and cooperatives has been identified as a key strategy for improving the production

and marketing performance of small farmers in the Philippines. Over the years, the potential of

cooperatives as a viable and sustainable form of enterprise has been increasingly recognized

worldwide. Despite the increasing advancement of the global agenda for promoting

cooperatives as vehicle for development, the role and contribution of cooperatives in agricultural

marketing development are often understated. One of the reasons for this is the dearth in

empirical evidences showcasing the success and potentials of agricultural cooperatives in

contributing to marketing efficiency.

According to VA Teodosio 2009 cited in Community Participation through

Cooperatives in addressing basic services: The Philippine experience, cooperatives account for

billions of pesos in total deposits which represents people's struggle against debt bondage and

usury in the absence of financial institutions. Members consist mostly of small farmers, market

vendors, fisher folks and Micro, Small and Medium Enterprises (MSMES). The less organized

are the poor, the more difficulties of access. Cooperatives operates for mutual responsibility and

various platforms for the benefits of its members. Cooperatives provides sustainable

development to foster sense of trust. The lack of access to credit financial institutions especially

for farmers, fisher folks and small entrepreneurs drive people to improve communities’ well-

being.

According to the study, Fidel Ramos introduced the national strategy for micro finance

to provide the low-income family access to credit as they need sustained financial services since

bank has declared that their services fail poor people both in quality and quantity. Cooperatives

through community action has been recognized by the government as they lead better

coordination, responsibility and performance. Cooperatives made significant contribution to

 24

development and financial aspects, which resulted to its growing number. Its growth demands

to become more responsive to public and should have more commitment among the members.

The Philippines was the first Asian country to adopt a cooperative strategy which

provides access to financial services for poor rural women and savings mobilization, adequate

institutional capital and competitive market pricing. The growth of worker cooperatives can be

seen in rural and urban areas. Manpower cooperatives are partners of Coca-Cola Philippines and

Plantation and San Miguel Group of Companies mostly in Mindanao.

In the Philippines, there is much still need to be done, and one significant aspect is to

include the participation of the people .Cooperative needs a long-term term focus and develop

performance to monitor and educate them. There should be an understanding in social capital in

terms of ownership and empowerment at the community level.

Cooperatives will drive individuals and groups to actively participate in decision that

will affect their lives and interests. Many cooperatives are proven effective helpful to the

national and local government addressing basic needs of the people, one remarkable factor is

the savings and credit cooperatives. Researches that will be undertaken about cooperatives will

surely broaden the knowledge of government officials and cooperative leaders, and that they

will sustain efforts towards development through sharing of experiences and plans.

According to Christian Anthony Agtuya 2016 cited in Socio-Economic Development of

the members of two multi-purpose cooperatives in Calapan City, Oriental Mindoro Philippines

which focused on the ultimate contribution of Calapan Labor Service Development and Calapan

Vendors Multipurpose Cooperative to the socio-economic development of their members, to

effectively handle decision making by the BOD members and to fully perform their obligations

and for the objectives to be achieved, they need to go into the center of the jobs of the members.
 25

Cooperatives' members are aware of their role and significance. They have been trained to

perform their duties and responsibilities as guided by the cooperatives set principles. They have

full understanding of their commitment which they will contribute for the organizational

development. Both cooperatives are proven very effective in their respective business being

capable of giving their members benefit on time.

The attitude towards affiliation is very common to both cooperatives. Both are focused

in making their connections to individuals and groups in local, provincial, regional and national

level being stable. Both cooperatives create new breeds of leaders since being part of a group

and becoming a member an ideal ground for good leadership. CALSEDECO desires outstanding

organizational performance while CVMPC concentrates to become a tough agent for economic

development of vendor-members.

For the best interest of members, cooperatives find ways to make credit facilities

available for every one of the members. This is accounted for as a highly concern of the

cooperatives to promote economic welfare to members.

Generally, the two cooperatives consider members' level of satisfaction which implies

that greater support from their members is needed to perform better in all aspects of their

operations. The cooperatives also played a very important role in uniting people and served as

catalysts for change and development. Members of cooperatives could also be develop to be a

high performing individuals or groups provided they will be able to continuously enlightened

by the benefits they will have from bonding and unity.

The cooperatives effectively make members feel self-sufficient. It also offers

opportunities for members' economic welfare, it develops groups' respective businesses and lead

members to be interested and supportive to all of the other members. Both cooperatives shows
 26

sincere concern to their members to provide alternative source of income other than their present

set up and help them out of poverty.

The study stated that there is favorable assessment of the socio - economic needs of the

communities in terms of multi-purpose cooperatives operations. It also recommended the policy

innovation and creativity by delivering program proposals to the Local Government Units to

create betterment to those most needy individuals and undeveloped communities (Agtuya,

2016).

According to Dame Pauline Green (2012), President of the International Cooperative

Alliance, said that credit unions have an important role in creating diversity in the corporate

business model – the solution to building a sustainable global economy. This is because credit

cooperative promotes and undertakes savings and lending services among its members. They

produce a common pool of funds in order to provide financial assistance and other affiliated

financial services to its members for productivity and provident purposes.

The Philippines and other Asian economies are the airplane economies, taking off and

offering the hope to the struggling world that a way can be found to put the global economy on

an sound footing, but I profoundly hope it will be a different footing to that which has prevailed

for the last four or five decades and which has recently crashed so spectacularly, she said.

She highlighted that in developing nations the cooperative movement has had a

significant impact on the domestic economy, ensuring the economic viability of rural

communities and local finance in particular, but has also increased its significance in other

business sectors. As funds have been withdrawn from our High Street competitors, they have

flooded into cooperative facilities. The knowledge that our sector most often only lends from its

own deposits, and does not engage with more risky financial ventures, across the globe our
 27

deposits have risen, sometimes quite substantially, our asset base has grown, and most important

for businesses and families, our lending volume has remain, and even developed, at the same

time as the lending volumes of our High Street competitors has collapsed, she said.

She called upon Asia’s political leaders to recognise the co-operative model in their

economic and strategic planning, saying there was never a more advantageous moment to

demonstrate the power of cooperatives and be in a position to lobby global decision makers than

now (Green, 2012)

According to Eulogio T. Castillo, PhD and Mercedes D. Castillo Administrators,

Cooperative Development Authority, Philippines cited in the Cooperatives in the Socio-

Economic Development of the Philippines, Under Philippine Development Plan (2011-2016),

Cooperatives are expected to provide a significant contribution in the objectives of creating a)

rapid, inclusive and sustained economic growth, b) financial inclusion, and c) reduction of

poverty. The cooperative has been the policy legal document of the government in promoting

social justice and economic development.

The constitution commands to the legislature to induce a department that will make use

of cooperatives as instruments of social justice and economic development. The basic law of the

land visualize the promotion of cooperatives in variegated sectors of the economy, the widening

of economic base and the marshalling of the less privilege members of the society to participate

actively in building the nation.

As a reply to the Constitutional command, Congress of the Philippines (legislature)

passed the Cooperative Code (Republic Act 6938) and Cooperative Development Authority

(CDA) Charter (RA 6939) on March 10, 1990. The Cooperative Code supplies for the general

notions and principles, organization and registration; membership; administration; dissolution;

 28

capital; recovery and funds; audit, inquiry and members right to examine; allocation and

admeasurement of net surplus; and special provisions in connection to agrarian reform

cooperatives, public cooperatives, cooperative banks, credit cooperative and cooperative

insurance societies, among others. The RA 6939 created the CDA, the agency that promotes the

viability and growth of cooperatives as instruments of equity, social justice and economic

development. The law provides its powers, functions, and responsibilities; the governing body;

budget and funds; and rule making power, among others.

The prudence in the management of affairs of the state, as far as cooperative is engaged,

is well-amplified in the Cooperative Code which express, to foster the creation and growth of

cooperatives as practical vehicle for promoting self-dependence and employing people power

towards the attainment of economic development and social justice. The State shall encourage

the private sector to undertake the actual formation and organization of cooperatives and shall

create an atmosphere that is conducive to the growth and development of these cooperatives. To

operationalize the procedure based primarily on material interest, the government including all

its branches, subdivisions, instrumentalities, and agencies are all called to ensure the provision

of technical guidance, monetary aid and other services to empower said cooperatives to foster

into viable movement that is free from any stipulation that may infringe upon the autonomy or

organizational integrity of cooperatives (Castillo and Castillo, 2011)

Stressing the need to develop a person’s full potential since its people are a country’s

most important resource, a government agency that regulates the cooperatives sector is bent on

effecting social change through peace and prosperity and in accordance with the core principle

of sustainable development.
 29

“Cooperatives are not just ordinary people’s movement for change, they put power where it

rightfully belongs—that is, with the people.”

“Cooperatives put people at the center of development processes where money is used not to

make more money but enhance the well-being of the poor, the oppressed, and downtrodden—

exactly the mandate of President [Rodrigo] Duterte”

- CDA Chairman Orlando Ravanera

Cooperative members came from different economic status and all walks of life such

us farmers, fisher folk, women, workers, indigenous peoples, small vendors, people with

disabilities, the homeless, drivers, the poor and vulnerable.

Ravena quoted that "Through cooperatives, all the sectors are now advancing their

inherent rights as citizens of this country and as responsible members of the community of the

world,”. Harnessing the people’s collective potentials, capabilities, and capacities has become

mandatory and must now take priority over all other precedences (Beltran, 2017).

What will the administration gain by actively supporting the creation of more

cooperatives? As stated in Cooperatives–the key to success in agriculture by Henry J.

Schumacher if farmers are getting together, developing a social form of business that relies on

a sense of community, it will lead to competitive farming, mechanization of farms, the

application of the latest technologies, the focus on high-value crops, the exclusion of the

middleman and the creation of effective supply and value chains.

The Philippines has a long history in building and creating cooperatives, but only a few

cooperatives are successful. What are the reasons behind early cooperatives failed? One reason

is because of incompetent management or not having skills to do something successfully. Lack

 30

of proper understanding of the principles, practices and true objectives and purposes of

cooperatives, improper use of credits by the borrowers who spent it in non-sense, nonessential

thins rather than using it in production, defective securities, inadequate character and moral

responsibility in handling the other fellows ‘money, and lack of adequate safeguards against

unscrupulous officers who took advantage of their position to benefit themselves.

Cooperatives can be successful and can be main players in creating and driving agri-

food supply and value chains, if they are managed by people who are experienced and has

integrity (Schumacher, 2017).

According to the Cooperative Development Authority chairman Orlando Ravanera

(2019) cooperative is the key against poverty. With the country nearly having 18,000 operating

cooperatives the chairman cited important roles of cooperatives or also known as co-ops in

addressing the country’s poverty. Cooperatives democratize wealth and authority in a highly

twisted society where the control belongs only to the few elites at the expense of many who are

staggering from poverty and helpless.

Stressing the need to develop a person’s full potential since its people are the country’s

most important resource, a government agency that regulates the cooperatives sector is bent on

effecting social change through peace and prosperity and in accordance with the core principle

of sustainable development. ‘Cooperatives put people at the center of development processes

where money is used not to make more money but enhance the well-being of the poor, the

oppressed, and downtrodden’ the chairman stated the words of president Duterte. Ravanera also

detailed the current administration is researching a way through cooperatives to strengthen the

beneficiary programs for farmers and micro-entrepreneurs.

Cooperatives according to the chairman may be tax exempt but they are tax makers.
 31

“As poverty is rooted in their lack of power to have access and control over their

resources and utilities, cooperativism is the empowering path in crafting their own destiny.”

Bernardo Villegas (2011) stated that instead of the Marxist cry for workers to join

together and end the free enterprise system to switch it with Socialism, there is the rising trend

towards workers establishing cooperatives to engage in all types of business. As the country

reaches dependable industrialization, with more and more workers being absorbed in the various

industry areas of mining, manufacturing, construction and public utilities cooperatives that are

now beginning to appear in the Philippine business can flourish into powerful conglomerates.

Through a workers’ cooperative, the members are enabled to concentrate work or labor

in the product, service or business thereof, and in return, not only do each members earn from

their personal labor, but also benefit from the effort or work of the other members. This type of

business is clearly in keeping with the essence of a cooperative, which is a business freely

formed by individuals for each member’s benefit and support, who equitably share in the capital,

participate in the services and become entitled to a reasonable share of the benefits, as well as

in the other consequences of the undertaking.

 32

CHAPTER III

METHODS AND PROCEDURES

This study is focused on the effect of multi-purpose loan of Calasiao Plant Cooperative

to its members. It aimed to determine the effect of multi-purpose loan in terms of their socio-

economic status.

The study would like to discuss if there is a significant difference between the effects of

multi-purpose loan along with their profile and proposed measures/interventions that can be

recommended to improve the utilization of multipurpose loan.

Research Design

The study used descriptive method. It deals with the collection of facts and figures

regarding present existing phenomenon. It has a purpose of developing a better comprehension

of a situation in detail. The study has the objective of describing the situation and classifies the

nature of a condition in a specified context while viewed from a specific and fixed perspective.

The descriptive study is best suitable as it is the major objective of research method.

Population and Locale of the Study

The research will be conducted mainly at the Calasiao Plant Cooperative, which is

selected for reason of being multi-awarded cooperative by the Cooperative Development

Authority. It focused on the members from the Calasiao Plant Cooperative located at Mc Arthur

Highway, Bued, Calasiao, Pangasinan.

As agreed with the management of Calasiao Plant Cooperative a set of 60 respondents

gathered thru random sampling of the overall number of their members who availed multi-

purpose loan will be selected through a simple random sampling technique to ensure equal

opportunity for all members of the study population to participate in the study. Since the sample
 33

size is more or less than a few hundred simple random sampling was selected, it is also best

suited to the study as it aims to minimize the biases in the process of the study.
 34

Figure 2

Calasiao Plant Cooperative in Bued, Calasiao, Pangasinan

Instrumentation/Sources of Data
 35

The researcher conducted an interview to the Calasiao Plant Cooperative’s Manager and

designed a survey questionnaire titled "Effect Of Multi-Purpose Loan Of Calasiao Plant

Cooperative To Members: Its Impact To Their Socio-Economic Status" for the data collection

instrument of this study. The content of the instrument was based on the possible effects of the

multi-purpose loan to the members from Calasiao Plant Cooperative.

The questionnaire has two sections: The upper and lower sections. Upper section is on

personal data of the respondents. Lower section is on the possible effects of the multi-purpose

loan. It has a total of 16 items, including the follow up question at the end of the questionnaire.

The instrument was structured in the modified Likert fashion, on a 5 point scale, ranging

from “strongly agree” (1), through “agree” (2), "neutral" (3), “disagree” (4) to “strongly

disagree” (5). Subjects were then instructed to respond to their degree of agreement with the

statements contained in the instrument.

The questionnaire was validated by research experts at Philippine College of Science

and Technology for the clarity and suitability of the instrument, and also found reliable.

Data Analysis/Treatment of Data

The researchers had undergone a quest to conduct, inspect and to discover useful

information. A written permission from research adviser was sent to the subject of this to bind

this research and its participants. The researchers sought permission and guidance in formulating

questionnaires to be issued to the participants. The process of inspecting, cleansing,

transforming and modeling of data with respect to the goal of discovering useful information,

informing conclusions and supporting decision-making were observed by the researchers in this

study.
 36

Through questionnaires, the researchers verified and counter checked the diversity of

responses from the participants. This supports the validity of this research study.

Data were gathered after performing interviews and administering the questionnaires.

The researchers used Frequency as a statistical tool. This is the number of times the event occur

in a study. This is often presented graphically in a histogram. The frequency formula:

𝑭
P= x 100
𝑵

where P is equal to the percentage

F = number of repetitions of an event / time it took for the repetition to occur

N is the number of respondents.

Ethical Considerations

Present adequate measures and procedures to be used that will safeguard and uphold

ethical standards in research such as, protecting the well-being of human participant; the

researchers carry both ethical and regulatory responsibilities to secure the welfare and interest

of those who volunteered to partake in the research study. Confidentiality of information is also

essential to the trust relationship between researcher and participant and to the integrity of the

research project.

Observance of protocol have also been conducted in the research where the system of

rules in the agreement is standardized and clearly defined, as observing and having our presence

can affect the performance of the group being observed.

Integrity of the sources or references must also be done to ensure the reliability of our

sources, that's where the researcher's observation and collecting data from the participants

comes to great use. The researchers must also give credit whenever they are directly quoting

another person's written or spoken words or paraphrase another person's spoken or written
 37

words. Giving credits must also be done when using theories, ideas, opinions, research, etc. to

avoid plagiarism.

The researchers and participants also valued Intellectual honesty where they were

unbiased, have an honest attitude, and when he or she knows the truth must state it. Ethical

considerations must also indicate that a member of the Research Ethics Council was present

during every defense.

CHAPTER IV

RESULTS AND DISCUSSIONS

This chapter identifies the effects of multi-purpose loan of Calasiao Plant Cooperative

to members’ socio-economic status based on their beliefs and perception and thus serves as a

basis to determine the necessary improvements for the betterment of the lives of its members.

Calasiao Plant Cooperative and their Multi-Purpose Loan

Membership. Members comprised of employees from related companies to the Calasiao

Plant Cooperative. Members are allowed to apply relative limited to one for a membership. This

could be a child of the member, a parent or a sibling provided the age of a child must not below
 38

18 years old and the age of the parents and siblings must not be older than 65 years old. The

cooperative do not accept walk in membership applications nor applicants not employed to

companies related to the cooperative. The cooperative collects membership fee.

Dividends. The cooperative issues dividends to its members through their contribution

or share capital in a certain percentage as to how the cooperative gained profit on its business

and other incomes. Members receive the same percentage of dividend. The computed amount

of dividends varies because of the amount of contribution of the members.

Patronage Refund. With patronage refund, the members of Calasiao Plant Cooperative

availing a multi-purpose loan receives a percentage of amount from its paid interest. The

percentage varies, and minimum percentage of refund is from 20% and above.

Multi-Purpose Loan. The cooperative does not state how a member will be granted a

multi-purpose loan and the monetary range allowed, but their basis is the capacity of the member

to pay through its Net Disposable income. It is guaranteed that 50% of the loan is kept by the

member for his household and the other 50% may be used to pay its loan and others. It is

important to the cooperative to let its members save money from the proceeds of the 1st 50%.

Interest. Calasiao Plant Cooperative Multi-Purpose loan’s interest depend on how long

the member shall loan an amount. The shorter the term of loan the lower the interest and the

longer the term of the loan the higher the interest. As the term of the loan prolongs, the higher

is the interest. The minimum interest is .0968% for 1 year. The term of the loan depends on the

arrangement of the cooperative and the member.

 39

Contributions. The members give monthly contributions to the cooperative through the

cooperative's tie up with related companies. There is an agreement within each plant and

employees who are members whom signed and are aware of their contributions through payroll

deduction. The deduction will depend on how the member can pay for the contribution and will

serve as his savings in the cooperative. In agreement with the member, weighing its capacity to

pay and its salary, monthly contribution will be determined. Each member has its capacity to

state its contribution, but required minimum amount of contribution is P400 per month. With

this, employees do not need to directly pay to the cooperative, instead the company belonged to

are obliged to turn over the deducted contributions.

Cost of Capital. The cooperative prioritize share capital as its way of financing. Seeking

members with high capacity to pay and has a high contribution to the cooperative to have an

additional contribution in terms of capitalization is the first step they consider in order to

increase its cost of capital. The cooperative shall first ask its members rather than to easily

outsource to other institutions. Some members who received high amount of separation pay

invest their money in the cooperative according to Ma’am Merly F. Molinar, Calasiao Plant

Cooperative Manager.

As to those who do not know about the multi-purpose loan, the cooperative

employees like Ma’am Merly visits members in their plants to inform them about the loans

offered by the cooperative. They do cascading and seminars. The cooperative do safety

measures before visiting plants such as informing the Human Resource Manager of the plant to

ask permission on their conduct on giving information to its members. Calasiao Plant

Cooperative sees it members as equal regardless of their position in the company and

contribution.
 40

Profile of the Members of Calasiao Plant Cooperative who Availed Multi-purpose Loan

This section presents the profile of the members of Calasiao Plant Cooperative who

availed multi-purpose loan in terms of age, gender, occupation and years as members.

Frequency counts and percentage method was used.

Age of the Respondents. Table 1 shown below presents the profile of the respondents

as to age categories. It is found out that respondents equivalent to 40% are 35-42 years old, 5%

are 18-26 years old, 35% are 27-34 years old and 18.33% are 45-51 years old. Generally, the

age of workers in the plant is 35-42 years old. It is because the people within this age are the

most experienced in labor extensive work compared to younger people who are more focused

in office and technology work.

Table 1
Profile of the respondents as to age
N=60
Age Frequency Percentage
18-26 y/o 3 5%
27-34 y/o 21 35%
35-42 y/o 24 40%
45-51 y/o 11 18.33%
52 and above 1 1.67%
Total: 60 100%

Gender of the Respondents. Table 2 shows the profile of the respondents as to gender

categories. It is found out that 36 or 60% of the respondent are male and the rest are female.

Majority are male because the main work done in the plant requires extensive labor and they

have more strength compared to a female.

Table 2
Profile of the respondents as to Gender
N=60
Gender Frequency Percentage
 41

Male 36 60%
Female 24 40%
Total 60 100%

Years as Members. Table 3 shows that most of the respondents are members of the

Calasiao Plant Cooperative for 7-9 years with a rating of 36.67% and only 8.33 % of the

respondents are member of the cooperative for less than a year. Most of the members stayed for

7-9 years because of the benefits they earned from the cooperative (ex. Low interest on loans,

helped provide education for families).

Table 3
Profile of the Respondents as to their Years as Member
N=60

Years as members Frequency Percentage

Less than 1 year 5 8.33%
1-3 years 8 13.33%
3-6 years 21 35%
7-9 years 22 36.67%
10 years and above 4 6.67%
Total: 60 100%

Effects of Multi-purpose Loan to the Members of Calasiao Plant Cooperative

This section presents the effects of multi-purpose loan to the members of Calasiao Plant

Cooperative in terms of social status and economic growth. Social Status is an economic and

sociological combined total measure of a person’s work experience and of an individual’s or

family’s economic and social position in relation to others, based on household income, earner’s

education, and occupation are examined, as well as combined income, whereas for an

individual’s status only their own attributes are assessed. However, social status is more

commonly used to depict an economic difference in society as a whole. It is typically broken

into three levels such as high, middle and low class.

 42

Economic Growth is an increase in the production of economic of goods and services,

compared from one period of time to another. Traditionally, aggregate economic growth is

measured in terms of gross national product (GNP) or gross domestic product (GDP).

Using a simple random sampling which is best to give every member chance to

participate in the research. The researcher started surveying with a quick interview to the

members of Calasiao Plant Cooperative requesting them for a permission. 60 respondents were

surveyed and interviewed for a week of staying in the cooperative during office hours. Members

were selected randomly while they visit the Calasiao Plant Cooperative for some matters.

Social Status. Table 4 presents the responses of the respondents on the benefits of Calasiao

Plant Cooperative multi-purpose loan as to their social status growth with an overall mean rating

of 3.80 or with a descriptive rating of favorable. It shows the responses of the selected members

of Calasiao Plant Cooperative who agreed to be surveyed and be guided by the researchers who

visited the cooperative and monitor the questionnaire.

Based on the findings presented in Social Status Assessment, having the highest

weighted mean of 4.10 or highly favorable, the multi-purpose loan helped respondents gained

positive feedback from community and 60% of the respondents agreed that the multipurpose

loan given by the Calasiao Plant Cooperative allowed them gained positive feedback from the

community and it also provided help to gain respect in the society. According to Merly f.

Molinar, Calasiao Plant Cooperative manager, with the multi-purpose loan, they are able to

finance their needs especially education and housing which today is an important matter in the

eye of the society.

Forty percent (40%) of the respondents agreed that multi-purpose loan helped them

provide their family a quality education and 50% of them also agreed that it was used to secure
 43

their career in the future. Both were described as favorable effect of the multi-purpose loan to

the members responded.

Table 4
Frequency Distribution of the benefit of Calasiao Plant Cooperative multi-purpose loan as to
Social Status of the member
N=60
Social Status Aspect 5 4 3 2 1 WM DE
Helps provide family a quality 18 24 9 2 7
education (90) (96) (27) (4) (7) 3.73 F
12 22 21 2 3
Provide higher class of housing (60) (88) (63) (4) (3) 3.63 F
Increase range participation with 13 18 18 6 5
other organizations (65) (72) (54) (12) (5) 3.47 F
Provide accessibility to members of 12 24 24 0 0
capital extensive requirements. (60) (69) (72) (0) (0) 3.80 F
Provide security for career in the 12 30 12 6 0
future (60) (120) (36) (12) (0) 3.80 F
Gained positive feedback from 18 36 0 6 0
community (90) (144) (0) (12) (0) 4.10 HF
Provide help to gain respect in the 24 18 18 0 0
society (120) (72) (54) (0) (0) 4.10 HF
Overall Mean: 3.80 F
Legend: (5) 4.01-5.00 highly favorable (4) 3.01-4.00 favorable
(3) 2.01-3.00 neutral (2) 1.01-2.00 unfavorable (1) 0-1.00 highly unfavorable

According to Wilson Majee and Ann Hoyt (2011) cited in Cooperatives and Community

Development: The study suggested that cooperatives may be an option that lifts groups, rather

than individuals out of poverty as a result of their ability to create social capital for the

cooperative members. Through training and interaction, members acquire skills that increase

their ability to work, confidence and participation in business and social activities, it also

provided an opportunity for all members to do well to the extent that they participate in the

cooperative.

Economic Growth of the Member. Table 5 presents the responses of the respondents

on the benefits of Calasiao Plant Cooperative multi-purpose loan as to their economic growth

with an overall mean rating of 4.50 or with a descriptive rating of highly favorable.
 44

Based on the graph presented in Economic Growth Assessment, 70% strongly agree and

30% agreed that multipurpose loan helped finance their family needs which resulted to a highest

computed weighted mean of 4.7 or with a descriptive rating of highly favorable. 60% strongly

agreed and 40% agreed that it helped them got engaged in business and other sources of income

which resulted to a 4.6 weighted mean. 50% strongly agreed and 50% agreed that it helped them

avoid bank loans, same with having reasonable credit and interest which had a 4.46 weighted

mean. 70% also agreed that it helped them lessened their current debt having a 4.2 weighted

mean which is still highly favorable.

Table 5
Frequency Distribution of the benefit of Calasiao Plant Cooperative multi-purpose loan as to
Economic Growth of the member
N=60
Economic Growth Assessment 5 4 3 2 1 WE DE
36 18 6 0 0
Increase thrift and savings (180) (72) (18) (0) (0) 4.50 HF
Help engage in business and provide 36 24 0 0 0
alternative source of income (144) (96) (0) (0) (0) 4.60 HF
42 18 0 0 0
Help finance family needs (210) (72) (0) (0) (0) 4.70 HF
30 30 0 0 0
Helps avoid loans to bank (150) (120) (0) (0) (0) 4.50 HF
 45

Provides reasonable credit term and 30 30 0 0 0

interest rate (150) (120) (0) (0) (0) 4.50 HF
The loan availed met necessary 30 30 0 0 0
expenditures (150) (120) (0) (0) (0) 4.50 HF
6 42 12 0 0
Lessened current debt (30) (168) (36) (0) (0) 3.90 HF
Overall Mean: 60 4.46 HF
Legend: (5) 4.01-5.00 highly favorable (4) 3.01-4.00 favorable
(3) 2.01-3.00 neutral (2) 1.01-2.00 unfavorable (1) 0-1.00 highly unfavorable

According to Ivana Catturani and Leanne Cutcher 2015 that financial credit co-

operatives are institutions whose members combine their deposits to create a local loan pool.

Members benefit from shared standard of reciprocity in this model of savings and loans that is

underpinned by the notion of mutuality. Financial co-operatives based on the nineteenth century

Raiffeisen principles of limitless liability and bonds of association can be found in over 100

countries across the globe. Financial co-operatives all share a belief that people have the right

to affordable, reliable and accessible financial services. Catturani and Cutcher added that

financial credit cooperatives pool their members' savings deposits and shares to finance their

own loan portfolios rather than rely on outside capital. Members benefit from the fact that any

surpluses are returned to the members in the form of higher returns on savings, lower rates on

loans.

Significant Difference between the Effects of Multi-Purpose loan to the Members of

Calasiao Plant Cooperative along with their Profile

This section presents the significant difference between the effects of multi-purpose loan

to the members of Calasiao Plant Cooperative along with their profile with the use of Chi-

Distribution Test.

Table 6
Chi-Distribution of the Significant Difference between the Effects of Multi-Purpose loan
to the Members of Calasiao Plant Cooperative along with their Profile as to Age
 46

N = 60

Computed Df Tabulated Value at Decision

Chi-Square 0.05 level of
Value significance

Social Status 84.88 59 79.08 Reject the Hypothesis

Economic Growth 151.78 59 79.08 Reject the Hypothesis

The tabulated value at 0.05 level of significance is 79.08 and the computed chi-square value in

terms of social status is 84.88 which is higher. Therefore, the hypothesis that there is significant effect

of the respondent age as to their social status benefits from the multipurpose loan is rejected. Same with

their Economic Growth benefits which is 151.78, there is no significant difference of the respondents

age as to their economic growth benefits.

Table 7
Chi-Distribution of the Significant Difference between the Effects of Multi-Purpose loan
to the Members of Calasiao Plant Cooperative along with their Profile as to Gender
N = 60

Computed Df Tabulated Value at Decision

Chi-Square 0.05 level of
Value significance

Social Status 0.95 59 79.08 Accept the

Hypothesis
Economic Growth 550.76 59 79.08 Reject the Hypothesis

The tabulated value at 0.05 level of significance is 79.08 and the computed chi-square value in

terms of social status is .95 which is lower. Therefore, the hypothesis that there is significant effect of

the respondent Gender as to their social status benefits from the multipurpose loan is accepted. Since,

their Economic Growth computed Chi-Square Value is 550.76, there is no significant difference of the

respondents gender as to their economic growth benefits.

 47

Table 8
Chi-Distribution of the Significant Difference between the Effects of Multi-Purpose loan
to the Members of Calasiao Plant Cooperative along with their Profile as to Years as
members
N = 60

Computed Df Tabulated Value at Decision

Chi-Square 0.05 level of
Value significance

Social Status 84.88 59 79.08 Reject the Hypothesis

Economic Growth 151.78 59 79.08 Reject the Hypothesis

The tabulated value at 0.05 level of significance is 79.08 and the computed chi-square value in

terms of social status is 84.88 which is higher. Therefore, the hypothesis that there is significant effect

of the respondent age as to their social status benefits from the multipurpose loan is rejected. Same with

their Economic Growth benefits which is 151.78, there is no significant difference of the respondents

age as to their economic growth benefits.

Recommended Measures/Interventions to Improve the Utilization of Multipurpose Loan

of Members of Calasiao Plant Cooperatives

This section presents the proposed measures/interventions can be recommended to

improve the utilization of multipurpose loan of members of Calasiao Plant Cooperatives and
 48

improve their socio-economic status. The researchers had prepared a brochure which will be

used by the cooperative to inform its members:

 49

CHAPTER V

SUMMARY, CONCLUSIONS AND RECOMMENDATIONS

This chapter presents the summary of findings of the study, the conclusions arrived at

on the basis of the findings and the corresponding recommendations in relation with the study.

Summary of Significant Findings

This study opted to analyze the effects of multi-purpose loan of Calasiao Plant

Cooperative to members’ socio-economic status. The primary tool used in this study was a

questionnaire. The questionnaire was constructed and validated with the help of the researcher’s

professors and adviser. To ensure higher percentage of retrieval, the researcher’s personally

conducted and assisted respondents in answering the questionnaire. The data collected were

coded, tallied, tabulated and analyzed using frequency counts and percentages.

Results

The researchers have collected necessary data needed to evaluate the effects of multi-

purpose loan of Calasiao Plant Cooperative to members’ socio-economic status. The following

findings from the analysis were found:

The responses of the respondents on the benefits of Calasiao Plant Cooperative multi-

purpose loan as to their social status growth was with an overall mean rating of 3.80 or with a

descriptive rating of favorable. And the responses of the respondents on the benefits of Calasiao

Plant Cooperative multi-purpose loan as to their economic growth was with an overall mean

rating of 4.50 or with a descriptive rating of highly favorable. On the final question of the survey,
 50

50% strongly agreed and 50% agreed that the multi-purpose loan from the Calasiao Plant

Cooperative improved their Socio-Economic Status or described as highly favorable.

Conclusion

Bases on the findings of the study, the researchers conclude the following:

1. All respondents strongly agreed and agreed that the multi-purpose loan improved their

Socio-Economic Status

2. There is no significant difference between the effects of multi-purpose loan to the

members of Calasiao Plant Cooperatives along with their profile.

3. Most respondents agreed that multi-purpose loan helped them provide their family a

quality education, provided higher class of housing, provided access to capital with high

class members and provided security for their career in the future.

4. Most respondents agreed that multi-purpose loan increased thrift and savings, helped

them engage in business and provide alternative source of income, helped avoid loans

to bank, and that it provided reasonable credit term and interest.

Recommendation

Based on the gathered responses which were analyzed by the researchers, they come up

with the proposed measures and interventions recommended to improve the utilization of

multipurpose loan of members of Calasiao Plant Cooperatives and improve member’s socio-

economic status based on the gathered responses which were analyzed by the researchers.

1. The Calasiao Plant Cooperative should inform well its members about the multi-

purpose loan’s terms. There should be a pamphlet which discusses everything about

the loan to their members.

 51

2. The member’s should be aware and understand well their benefits and obligations

for availing multi-purpose loans to Calasiao Plant Cooperative. They should ask for

clarifications whenever needed.

3. The interested members should make and ask for a review from other members’ who

have tried the multi-purpose loan.

4. Be open to suggestions and recommendations.

BIBLIOGRAPHY

Virendra Kumar,KG Wankhede ,HCGena (2015). Role of Cooperatives in Improving

Livelihood of Farmers on Sustainable Basis.

https://pdfs.semanticscholar.org/c44c/590b6682a062ef6853bac9ddab40383489cf.pdf

Andrew Emmanuel Okem, Theoretical and Empirical Studies on Cooperatives (01/14/ 2016).
 52

https://link.springer.com/chapter/10.1007/978-3-319-34216-0_1

CB Gupta 6th edition (2012), Business Studies for class XI

Ivana Catturani, Leanne Cutcher (2015). Cooperative Enterprises in Australia and Italy:

Comparative Analysis and Theoretical Insights (2015)

Ethan Tremblay, Afton Hupper, Timothy Waring SocArXiv (2019).

Cooperatives exhibit greater cooperation than comparable businesses: experimental

evidence

Nicky-LaMarco (2018). Advantages-of-cooperative-business.

https://smallbusiness.chron.com/advantages-cooperative-business-23592.html

Sarah Alldred (2013). In ternational-day-of-cooperatives.

https://www.google.com/amp/s/amp.theguardian.com/global-development-

professionals-network/2013/jul/06/international-day-of-cooperatives

Salamun Pasda, Basri Bado, Siti Hasbiah (ICMEMm 2018, 2019). First International

Conference on Materials Engineering and Management-Management Section).

https://download.atlantis-press.com/article/55914197.pdf

Yvonne Yen Liu (2018). Asian Immigrants Cooperatives Came From The Home Country

https://www.yesmagazine.org/people-power/for-asian-immigrants-cooperatives-came-

from-the-home-country-20180522

Movsisyan, S. (2013). The role of cooperative in development of agriculture in America.

Asian Countries and EU. Germany: Institute for Diplomacy.

http://107.170.122.150:8080/xmlui/bitstream/handle/123456789/704/12634.pdf%3Fse

quence%3D1%26isAllowed%3Dy&ved=2ahUKEwibq22oLkAhVUa94KHXjGB5I4C

hAWMAF6BAgFEAE&usg=AOvVaw1DPBAKrGed0MEn5ecIlXsP

Credit Unions’ important role in sustainable economy cited.

 53

http://business.inquirer.net/80764/credit-uinons-important-role-in-sustainable-

economy-cited/amp

EULOGIO T. CASTILLO, PhD and MERCEDES D (2017).

Cooperatives in the SocioEconomic Development of the Philippines

LEA MANTO-BELTRAN (Mar. 9, 2017) Cooperatives as ‘catalyst of change’

https://www.manilatimes.net/cooperatives-catalyst-change/316279/

Henry J. Schumacher (December 3,2017). Cooperatives–the key to success in agriculture.

https://businessmirror.com.ph/2017/12/03/cooperatives-the-key-to-success-in-

agriculture-3-2/

Orlando Ravanera, CDA Chair (2019). Cooperative key against poverty, says CDA chair, By

Christine Cudis (March 11, 2019).

https://www.pna.gov.ph/articles/1064237

Dr. Bernardo M. Villegas (2011). The increasing role of workers’ cooperatives.

https://www.google.com/amp/s/business.inquirer.net/31985/the-increasing-role-of-

workers-cooperatives/amp

Christian Flor Guittap. (2016 ) Agri coops boost rural development

KYLE WHITE 5 Reasons Co-ops Can Fail ( AUGUST 17, 2017).

https://cooperativesfirst.com/blog/2017/08/17/20178175-reasons-co-ops-can-fail/

THE MANILA TIMES (2019). Duterte signs new Cooperative Development Authority

charter Lotes P. Lab-oyan (2018) Issues and Challenges Confronting Cooperatives.

https://www.baguioheraldexpressonline.com/issues-and-challenges-confronting-

cooperatives/
 54

Appendices
 55

Appendix A
Letter to the Executive Vice President

ENGR. OSCAR B. GIRONELLA, SR.

Executive Vice President
Philippines College of Science and Technology

Dear Sir:

Greetings!

As part of the requirements of Accountancy and Business Management College Synthesis

course, the undersigned students, 4th year Bachelor of Science in Accountancy of the Philippine
College of Science and Technology would like to respectfully request permission to conduct a
study entitled “EFFECTS OF MULTI-PURPOSE LOAN TO MEMBERS FROM COCA-
COLA PHILIPPINES CALASIAO, PANGASINAN OF CALASIAO PLANT
COOPERATIVES: ITS IMPACT TO THEIR SOCIO-ECONOMIC STATUS”. Its main
objective is to proposed measures and interventions that can be recommended to improve the
utilization of multipurpose loan of members of Calasiao Plant Cooperative and improve their
socio-economic status.

Rest assured that the researchers will follow protocol in the conduct of the study outside the
institution.

Thank you and God bless!

Truly yours,

Ram Alexis C. Arquillano

 56

Wansy F. Ballesteros
Rainier S. Dulay
Gijan Lyn G. Sentinellar
Niña Rodille R. Vinluan

Noted by: Rosalie Sheryll T. Rosales, MBA, CMITAP, DBA

Research Adviser

Approved by: ENGR. OSCAR B. GIRONELLA, SR.

Executive Vice President
Appendix B
Letter to the Vice President for Academic Affairs

ENGR. RAUL B. GIRONELLA, SR.

Vice President for Academic Affairs
Philippines College of Science and Technology

Dear Sir:

Greetings!

As part of the requirements of Accountancy and Business Management College Synthesis

course, the undersigned students, 4th year Bachelor of Science in Accountancy of the Philippine
College of Science and Technology would like to respectfully request permission to conduct a
study entitled “EFFECTS OF MULTI-PURPOSE LOAN TO MEMBERS FROM COCA-
COLA PHILIPPINES CALASIAO, PANGASINAN OF CALASIAO PLANT
COOPERATIVES: ITS IMPACT TO THEIR SOCIO-ECONOMIC STATUS”. Its main
objective is to proposed measures and interventions that can be recommended to improve the
utilization of multipurpose loan of members of Calasiao Plant Cooperative and improve their
socio-economic status.

Rest assured that the researchers will follow protocol in the conduct of the study outside the
institution.

Thank you and God bless!

Truly yours,

Ram Alexis C. Arquillano

Wansy F. Ballesteros
Rainier S. Dulay
Gijan Lyn G. Sentinellar
Niña Rodille R. Vinluan
 57

Noted by: Rosalie Sheryll T. Rosales, MBA, CMITAP, DBA

Research Adviser

Approved by: ENGR. OSCAR B. GIRONELLA, SR.

Executive Vice President

Appendix C
Letter to the Director of Research and Graduate Studies

DR. CRISTINA L. TAGURA

Director for Research and Graduate Studies
Philippines College of Science and Technology

Dear Ma’am:

Greetings!

As part of the requirements of Accountancy and Business Management College Synthesis

course, the undersigned students, 4th year Bachelor of Science in Accountancy of the Philippine
College of Science and Technology would like to respectfully request permission to conduct a
study entitled “EFFECTS OF MULTI-PURPOSE LOAN TO MEMBERS FROM COCA-
COLA PHILIPPINES CALASIAO, PANGASINAN OF CALASIAO PLANT
COOPERATIVES: ITS IMPACT TO THEIR SOCIO-ECONOMIC STATUS”. Its main
objective is to proposed measures and interventions that can be recommended to improve the
utilization of multipurpose loan of members of Calasiao Plant Cooperative and improve their
socio-economic status.

Rest assured that the researchers will follow protocol in the conduct of the study outside the
institution.

Thank you and God bless!

Truly yours,

Ram Alexis C. Arquillano

Wansy F. Ballesteros
Rainier S. Dulay
Gijan Lyn G. Sentinellar
Niña Rodille R. Vinluan

Noted by: Rosalie Sheryll T. Rosales, MBA, CMITAP, DBA

Research Adviser
 58

Approved by: DR. CRISTINA L. TAGURA

Director for Research and Graduate Studies
Appendix D
Letter to the College of Accountancy and Business Program Department Head

Dr. ROSALIE SHERYLL T. ROSALES

Department Head
College of Accountancy and Business Program

Dear Ma’am:

Greetings!

As part of the requirements of Accountancy and Business Management College Synthesis

course, the undersigned students, 4th year Bachelor of Science in Accountancy of the Philippine
College of Science and Technology would like to respectfully request permission to conduct a
study entitled “EFFECTS OF MULTI-PURPOSE LOAN TO MEMBERS FROM COCA-
COLA PHILIPPINES CALASIAO, PANGASINAN OF CALASIAO PLANT
COOPERATIVES: ITS IMPACT TO THEIR SOCIO-ECONOMIC STATUS”. Its main
objective is to proposed measures and interventions that can be recommended to improve the
utilization of multipurpose loan of members of Calasiao Plant Cooperative and improve their
socio-economic status.

Rest assured that the researchers will follow protocol in the conduct of the study outside the
institution.

Thank you and God bless!

Truly yours,

Ram Alexis C. Arquillano

Wansy F. Ballesteros
Rainier S. Dulay
Gijan Lyn G. Sentinellar
Niña Rodille R. Vinluan

Noted by: Mr. Manolo Filomeno, CPA, MBA

Research Instructor

Approved by: Dr. ROSALIE SHERYLL T. ROSALES

Department Head, College of Accountancy and Business Program
Appendix E
 59

Letter of Request to Conduct Study

MS. MERLY F. MOLINAR

Manager, Calasio Plant Cooperative
Bued, Calasiao, Pangasinan

Dear Ma’am:

Greetings!

As part of the requirements of Accountancy and Business Management College Synthesis

course, the undersigned students, 4th year Bachelor of Science in Accountancy of the Philippine
College of Science and Technology would like to respectfully request permission to conduct a
study entitled “EFFECTS OF MULTI-PURPOSE LOAN TO MEMBERS FROM COCA-
COLA PHILIPPINES CALASIAO, PANGASINAN OF CALASIAO PLANT
COOPERATIVES: ITS IMPACT TO THEIR SOCIO-ECONOMIC STATUS”. Its main
objective is to proposed measures and interventions that can be recommended to improve the
utilization of multipurpose loan of members of Calasiao Plant Cooperative and improve their
socio-economic status.

In line with this, we selected your cooperative as the most suitable respondent to our research
as we observed that Calasiao Plant Cooperative standout on its operations among different
cooperatives in Pangasinan.

Rest assured that the researchers will follow protocol in the conduct of the study.

Hoping for your prompt and favorable approval on this request.

Thank you and God bless!

Sincerely yours,

RAM ALEXIS C. ARQUILLANO

WANSY F. BALLESTEROS
RAINIER S. DULAY
GIJAN LYN G. SENTINELLAR
NIÑA RODILLE R. VINLUAN

Noted by: Mr. Manolo Filomeno, CPA, MBA

Research Instructor
 60

Recommending Approval:

Dr. ROSALIE SHERYLL T. ROSALES

Department Head, College of Accountancy and Business Program
 61

Appendix F

REPUBLIC ACT NO. 9520

AN ACT AMENDING THE COOPERATIVE CODE OF THE PHILIPPINES TO BE
KNOWN AS THE "PHILIPPINE COOPERATIVE CODE OF 2008"

SECTION 1. Articles 1, 2, 3, 4 and 5 of Chapter 1 on General Concepts and Principles of

Republic Act No. 6938, otherwise known as the "Cooperative Code of the Philippines," are
hereby amended to read as follows:

GENERAL CONCEPTS AND PRINCIPLES

"ARTICLE 1. Title. - This Act shall be known as the "Philippine Cooperative Code of 2008".

"ART. 2. Declaration of Policy.- It is the declared policy of the State to foster the creation and
growth of cooperatives as a practical vehicle for promoting self-reliance and harnessing people
power towards the attainment of economic development and social justice. The State shall
encourage the private sector to undertake the actual formation and organization of cooperatives
and shall create an atmosphere that is conducive to the growth and development of these
cooperatives.

"Toward this end, the Government and all its branches, subdivisions, instrumentalities and
agencies shall ensure the provision of technical guidance, financial assistance and other services
to enable said cooperatives to develop into viable and responsive economic enterprises and
thereby bring about a strong cooperative movement that is free from any conditions that might
infringe upon the autonomy or organizational integrity of cooperatives.

"Further, the State recognizes the principle of subsidiarity under which the cooperative sector
will initiate and regulate within its own ranks the promotion and organization, training and
research, audit and support services relative to cooperatives with government assistance where
necessary.

"ART. 3. General Concepts. - A cooperative is an autonomous and duly registered association

of persons, with a common bond of interest, who have voluntarily joined together to achieve
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 cooperative
principles.

"ART. 4. Cooperative Principles. - Every cooperative shall conduct its affairs in accordance
with Filipino culture, good values and experience and the universally accepted principles of
cooperation which include, but are not limited to, the following:

"(1) Voluntary and Open Membership - Cooperatives are voluntary organizations, open to all
persons able to use their services and willing to accept the responsibilities of membership,
without gender, social, racial, cultural, political or religious discrimination.
 62

"(2) Democrative Member Control - Cooperatives are democratic organizations that are
controlled by their members who actively participate in setting their policies and making
decisions. Men and women serving as elected representatives, directors or officers are
accountable to the membership. In primary cooperatives, members have equal voting rights of
one-member, one-vote. Cooperatives at other levels are organized in the same democratic
manner.

"(3) Member Economic Participation - Members contribute equitably to, and democratically
control, the capital of their cooperatives. At least part of that capital is the common property of
the cooperative. They shall receive limited compensation or limited interest, if any, on capital
subscribed and paid as a condition of membership. Members allocate surpluses for any or all of
the following purposes: developing the cooperative by setting up reserves, part of which should
at least be indivisible; benefitting members in proportion to their partonage of the cooperative's
bubsiness; and, supporting other activities approved by the membership.

"(4) Autonomy and Independence - Cooperatives are autonomous, self-help organizations

controlled by their members. If they enter into aggreements with other organizations, including
government, or raise capital from external sources, they shall do so on terms that ensure
democratic control of their members and maintain their cooperative autonomy.

"(5) Education, Training and Information - Cooperatives shall provide education and training
for their members, elected and appointed representatives, managers, and employees, so that they
can contribute effectively and efficiently to the development of their cooperatives.

"(6) Cooperation Among Cooperatives - Cooperatives serve their members most effectively and
strengthen the cooperative movement by working together through local, national, regional and
international structures.

(7) Concern for Community - Cooperatives work for the sustainable development of their
communities through policies approved by their members.

"ART. 5. Definition of Terms. – The following terms shall mean:

"(1) Member includes a person either natural or juridical who adhering to the principles set forth
in this Code and in the Articles of Cooperative, has been admitted by the cooperative as member;

"(2) General Assembly shall mean the full membership of the cooperative duly assembled for
the purpose of exercising all the rights and performing all the obligations pertaining to
cooperatives, as provided by this Code, its articles of cooperation and bylaws: Provided, That
for cooperatives with numerous and dispersed membership, the general assembly may be
composed of delegates elected by each sector, chapter or district of the cooperative in
accordance with the rules and regulations of the Cooperative Development Authority;

"(3) Board of Directors shall mean that body entrusted with the management of the affairs of
the cooperative under its articles of cooperation and bylaws;

"(4) Committee shall refer to any body entrusted with specific functions and responsibilities
under the bylaws or resolution of the general assembly or the board of directors;
 63

"(5) Articles of Cooperation means the articles of cooperation registered under this Code and
includes a registered amendment thereof;

"(6) Bylaws means the bylaws registered under this Code and includes any registered
amendment thereof;

"(7) Registration means the operative act granting juridical personality to a proposed
cooperative and is evidenced by a certificate of registration;

"(8) Cooperative Development Authority refers to the government agency in charge of the
registration and regulation of cooperatives as such hereinafter referred to s the Authority;

"(9) Universally Accepted Principles means that body of cooperative principles adhered to
worldwide by cooperatives;

"(10) Representative Assembly means the full membership of a body of representatives elected
by each of the sectors, chapter or district o the cooperative duly assembled for the purpose of
exercising such powers lawfully delegated unto them by the general assembly in accordance
with its bylaws;

"(11) Officers of the Cooperative shall include the members of the board of directors, members
of the different committee created by the general assembly, general manager or chief executive
officer, secretary, treasurer and members holding other positions as may be provided for in their
bylaws;

"(12) Social Audit is a procedure wherein the cooperative assesses its social impact and ethical
performance vis-à-vis its stated mission, vision, goals and code of social responsibility for
cooperatives to be established by the Authority in consultation with the cooperative sector. It
enables the cooperative to develop a process whereby it can account for its social performance
and evaluate its impact in the community and be accountable for its decisions and actions to its
regular members;

"(13) Performance Audit shall refer to an audit on the efficiency and effectiveness of the
cooperative as a whole; its management and officers; and its various responsibility centers as
basis for improving individual team or overall performance and for objectively informing the
general membership on such performance;

"(14) A Single-Line or Single-Purpose Cooperative shall include cooperative undertaking

activities which are related to its main line of business or purpose;

"(15) Service Cooperatives are those which provide any type of service to its members,
including but not limited to, transport, information and communication, insurance, housing,
electric, health services, education, banking, and savings and credit;

"(16) Subsidiary Cooperative refers to three or more primary cooperatives, doing the same line
of business, organized at the municipal, provincial, city, special metropolitan political
subdivision, or economic zones created by law, registered with the Authority to undertake
business activities in support of its member-cooperatives."
 64

Approved:
February 17, 2009

(SGD.) GLORIA MACAPAGAL ARROYO

President of the Philippines

Appendix G
Letter of Consent to Inform

Informed Consent Form for Manager

This informed consent form is for the Manager of Calasiao Plant Cooperative in
Calasiao, Pangasinan who has met the inclusion criteria for this research. They are invited to
participate in the research entitled, “Effects of Multi-purpose Loan to the members of Calasiao
Plant Cooperative: Its impact to their Socio-Economic Status”.

Part I: Information Sheet

Introduction

Researchers are Fourth Year Accountancy students of Philippine College of Science and
Technology in Nalsian, Calasiao, Pangasinan. We are doing a research study regarding the
Effects of Multi-purpose Loan to the members of Calasiao Plant Cooperative: Its impact to their
Socio-Economic Status. Researchers will give you information regarding the study for you to
be a part of this research. You do not have to decide today whether or not you will participate
in the research. Also, before you decide, you can talk to anyone you feel comfortable with about
 65

the research. This consent form may contain words that you do not understand. Please ask us to
stop as we go through the information and we will take time to explain. If you have questions
later, you can ask them to the researchers.

Purpose of the research

Employees who are involved, may have improvement of understanding about the
benefits of the loan since this study is focused on the effect of multi-purpose loan of Calasiao
Plant Cooperative to its members. It also aimed to determine the effect of multi-purpose loan in
terms of their socio-economic status.

Type of Research Intervention

This research includes distribution of survey questionnaires to the members of Calasiao

Plant Cooperative and short interviews to the manager and members.

Participant Selection

The researcher sees that you have met all the inclusion criteria of this research. Your
experience will be of great help in the formulation of our study of Effects of Multi-purpose Loan
to the members of Calasiao Plant Cooperative: Its impact to their Socio-Economic Status.
Voluntary Participation

Your participation in this research is voluntary. It is your choice whether to participate

or not. Rest assured that your participation will have not affect the services you are receiving in
this company. If at the later part of the research you decide to stop participating, you may do so,
even if you have agreed earlier.

Procedures

The researcher is asking your help to explore your experiences regarding the Effects of
Multi-purpose Loan to the members of Calasiao Plant Cooperative: Its impact to their Socio-
Economic Status. You are invited to take part in this research study. If you accept, you will
undergo phase for data gathering.

First, you will be asked to fill out the survey questionnaires that will be administered
and collected by the researchers. You can answer these questionnaires on your own, or the
researcher can read to you the questions and you can say out loud your answers and the
researchers will write down for you. If you do not wish to answer any of the items in the survey,
you may skip them and move on to the next question. The information recorded will be treated
 66

with confidentiality and that you will only be known by a specific number assigned to you all
throughout the research study. Rest assured that only the researcher would have access to the
information you shall give.

Second, you will be asked to participate in an interview with us. During interview, some
of the researchers will sit down with you in a comfortable place where you can talk. If you do
not wish to answer any of the questions during the interview, you may say so and we will move
on to the next question. No one else but the interviewer will be present unless you would want
someone else to be there. The information recorded will be treated with highest confidentiality
and only the researcher will have access to the information documented. The entire interview
will be recorded, but no one will be identified by the name on the recording. The recording will
be kept digitally and only the researcher will have access to the recording. This will be destroyed
once the research study has been completed.

Duration

The research takes place over four to five months in total. During this time, the
researcher will visit you from time to time. The interview may be needed to further explore
certain vague points during the depth interview, this too shall take about 30mins to an hour. The
researcher shall always consider your convenience and shall abide with your request for time
and place.

Benefits

There will be no benefit to you, but this will benefit the management by enhancing its
understanding in determining the effects of multi-purpose loan, its benefits and necessary
improvements to its members. The study will help in terms of broadening the member’s
knowledge about the effects of multi-purpose loan in their socio-economic status.

Confidentiality

This research study will draw attention and if you participate, others might ask question.
Information will be treated with upmost confidentiality by the researcher. The information
gathered will be kept privately and the researcher will have the sole access to this. Recordings
will be kept digitally in a laptop with a password that the researcher can only access.

Sharing the Results

Everything you share with the researcher today will not be shared to anybody else and
nothing will be attributed to your name. The knowledge that we get from this research will be
shared to you and the rest of the participants before it is made available to the public. The result
 67

of this study can also be published or can be shared in a conference so that others may gain
knowledge from it and may interest others to conduct further research on the same topic.

Right to Refuse or Withdraw

It is your decision if you would want to be part of this researcher, and choosing to
participate will not affect the services you receive in this company. You may stop participating
at any time that you wish to. I will give you an opportunity at the end of the interview to review
your remarks, and you can ask to modify or remove portions of those, if you do not agree with
my notes or if I did not understand you correctly.

Whom to Contact

If you wish to ask questions later, you may contact any of the following other than the
researchers:

Rosalie Sheryll T. Rosales, MBA, CMITAP, DBA

Research Adviser
College of Accountancy and Business Program
Philippine College of Science and Technology
Contact Number: 0949-994-5546

Mr. Manolo Filomeno, CPA, MBA

Research Instructor
College of Accountancy and Business Program
Philippine College of Science and Technology
Contact Number:
 68

Part II: Certificate of Consent

I have been invited to participate in research about the Multi-purpose Loan of Calasiao
Plant Cooperative. I know this research will be beneficial in the understanding of the effects of
the multi-purpose loan to the members of the Cooperative.
I have read the foregoing information, or it has been read to me. I have had the
opportunity to ask questions about it and any question I have been asked have been answered
to my satisfaction. I consent voluntarily to be a participant in this study

Print Name of Participant

Signature of Participant
Date ________________
Day/Month/Year
If Illiterate

I have witnessed the accurate reading of the consent form to the potential participant,
and the individual has had the opportunity to ask question. I confirm that the individual has
given consent freely.

Print Name of Witness __________

Signature of Witness ____ Thumbprint of Participant
Date ________________
Day/Month/Year
Statement by the researcher/person taking consent

We have accurately read out the information sheet to the potential participant, and to the
best of my ability made sure that the participant understands that the following will be done:

1. Answering assessment tools regarding effects of multi-purpose loan to members.

2. In depth Interviews and follow up interviews.
3. Consensual validation of results.
We confirm that the participant was given an opportunity to ask questions about the
study, and all the questions asked by the participant have been answered correctly and to the
best of our ability. We confirm that the individual has not been coerced into giving consent, and
the consent has been given freely and voluntarily.

A copy this ICF has been provided to the participant.

A Print Name of Researcher/Person taking the consent ______________________
Signature of Research/Person taking the consent ______________________
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Date ________________
Day/Month/Year

Appendix H
Survey Questionnaire

Name (Optional) _____________________________________________________

Part I. PROFILE

DIRECTION: Please check ( / ) the choices below that describes your personal profile.

AGE:

18-26 years old 35-42 years old 51 and above

27-34 years old 43-50 years old

GENDER:

Male Female

YEARS AS MEMBER:

Less than 1 year 4-6 years 10 years and above

1-3 years 7-9 years

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PART II. EFFECTS OF MULTI-PURPOSE LOAN OF CALASIAO PLANT

COOPERATIVE TO MEMBERS

DIRECTION: Please check ( / ) the choices below that describes your beliefs and perception
on the Effects of Multi-Purpose Loan of Calasiao Plant Cooperative to members using the
scale below:

1-Strongly Disagree 2- Disagree 3-Neutral 4- Agree 5- Strongly Agree

SOCIAL STATUS ASSESMENT 5 4 3 2 1

1. The multi-purpose loan help provide my family quality
education.
2.The multi-purpose loan provided higher class of housing.
3.The multi-purpose loan increased my range of participation in
other organizations with co-members.
4. The multi-purpose loan provide accessibility to members
of capital extensive requirements.
5. The multi-purpose loan help secure my future career or any of
such.
6.The community I belonged to have knowledge about the loan
and I gain positive feedback.
7. The multi-purpose loan helped me up in the society. Like
becoming more respected.

ECONOMIC GROWTH ASSESMENT 5 4 3 2 1

1. The multi-purpose loan increased thrift and savings.
2. The multi-purpose loan help me engage in Business and
provided alternative source of income better than contractual
arrangements or the present set up.
3. The multi-purpose loan help finance family needs and other
financial factors.
4. The multi-purpose loan help avoid loans to bank and other
financial institutions, who includes higher interest rates.
5. The multi-purpose loan provided reasonable credit term and
rate of return.
6. The multi-purpose loan availed met necessary expenditures.
7. The multi-purpose loan lessen my current debt.

I believed that Multi-Purpose loan from Calasiao Plant

Cooperative improves SOCIO-ECONOMIC STATUS of its
members.
I will recommend multi-purpose loan to other members who
haven’t avail yet.

Appendix I
Invitation and Acceptance Letter
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Rosalie Sheryll T. Rosales, MBA, CMITAP, DBA

Research Adviser
Philippine College of Science and Technology

Dear Ma’am:

The group members of the thesis/research study entitled “Effects of Multi-purpose Loan to the
members of Calasiao Plant Cooperative: Its impact to their Socio-Economic Status”, have
requested through the undersigned that you serve as their adviser. Relative to this request, the
undersigned takes the pleasure of inviting you to do so. With your qualifications, expertise and
experience, there is no doubt that the researchers will be benefited with your guidance for the
completion of their research study for A.Y. 2019 – 2020.

Your acceptance is duly anticipated and very much appreciated.

Thank you and more power.

Noted by,

ROSALIE SHERYLL T. ROSALES, MBA, CMITAP, DBA

Department Head

ACCEPTANCE SLIP

To the Research Coordinator:

Thank you for the invitation.

I am willing to accept duties and responsibilities of an adviser for the thesis/research study
entitled “Effects of Multi-purpose Loan to the members of Calasiao Plant Cooperative: Its
impact to their Socio-Economic Status”.

ROSALIE SHERYLL T. ROSALES, MBA, CMITAP, DBA

Adviser
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Certificate of
Compliance
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Curriculum Vitae