Measuring co-op impact through social audit

1. Canadian Co-operative Association Annual AGM June 21, 2003 Aylmer, Quebec by: Edgar Comeros Philippines Measuring co-op impact through social audit

2. outline • The Philippine situation • Coop as a vehicle for development: its role in poverty alleviation • The coops in the Philippines • Why social audit?; elements • The coop principles: measuring impact

3. situation • Population of 78 million • 49.6% women • Poverty threshold $130 per month • 36% of families live below poverty threshold • 61% in rural areas

4. quo vadis: Philippines • Country slowly regaining economic loss brought about by the 20 year martial law regime • Improved democratic space was priority of the Cory Aquino era • Ramos era’s economic gains eroded by the crippling Asian Economic crisis • Two year of Estrada administration dismantled economic fundamentals • Arroyo’s administration met with the devastating effect of 9/11 • High degree of uncertainty: terrorism and political instability

5. Increasing people’s insecurity • No certainties with regard to: • Finding work • Having decent livelihood • Earning enough • Having enough to eat, eating proper diet • Staying healthy, staying alive • Affording a doctor and medicines when sick • Sending children to school • Repaying debts, borrowing anew • Knowing whom and where to run for help

6. Impact of the Crisis • Impacting on the Vulnerable Groups • Women • Children • Youth • Older persons • Factory workers • Overseas migrant workers

7. Why is co-op important to us? • Co-op put people first • Member owned • Driven by members’ needs • Increase clout in the marketplace • Collective enterprise; member share in the earnings • Democratically governed,political action • Enhance and protect local autonomy

8. We believe. . . • Co-operatives are Community Enterprises • Co-operatives Promote Democracy • Co-operatives Raise Human Dignity • Co-operatives are Systems for Development

9. nat’l co-opstats • 60,000 co-ops as of Dec 2002 • Rule of the 50s apply • 2.9 million co-operators or 3.8% of Philippine population • 560 federations and unions or average of 7-8 federations/unions per province • Only about 3,000 millionaire co-ops

10. The emerging Situation (Benoit Tremblay model) Intensity of Co- operative rules Strong cooperative intensity & Low competitive intensity Strong cooperative Intensity & High competitive intensity Coop Values Cooperative Principles & Practices + I IV Weak cooperative Intensity & Low competitive Intensity Weak cooperative Intensity & High competitive Intensity - V Cooperative in Non-market environment Intensity Of market Rules II III - + Competitive intensity Deregulation internationalization VI Corporate status

11. Profile of Cooperatives’ Diversity of Context Intensity of Co- operative rules Coop Values Cooperative Principles & Practices + A C I IV - B V Cooperative in Non-market environment Intensity Of market Rules II III - + Competitive intensity Deregulation internationalization D VI Corporate status

12. the importance of social audit Not just doing things Right, but doing the Right Things

13. Ghandhi’sSeven Social Sins • Politics without Principle • Wealth without Work • Commerce without Morality • Pleasure without Conscience • Education without Character • Science without Humanity • Worship without Sacrifice

14. what is social audit for us? • account for its social performance, report on and improve that performance. • assesses the social impact and ethical behavior • focuses also social rather than just financial performance

15. The social audit process serves as: • Report on co-op performance along the areas of co-op principles • effectively monitor and steer performance • Provided basis in shaping mgt decision

16. The Process: CCA Project project • Conceptualization • Canadian expert actual conduct working papers FGD Buy-in validation Strategic planning AGM presentation BOD presentation

17. Initial benefits noted • Recognized need for accountability and • credibility with members and stakeholders • Reflected co-op's desire to be • credible model and advocate for social responsibility • Wanted to "make a difference" in • communities and strengthen business • Market differentiation in financial services • industry — co-op as a leader Good business is Good Social Responsibility

18. Provided management with a tool • to evaluate & assess performance • Mechanism to communicate community • impacts to a wide range of stakeholders • Basis for some marketing initiatives Social responsibility is Good business

19. measuring the impact of social audit. the coop Indicators

20. Principle 1: Voluntary & Open • Membership database • Percentage increase / decrease of regular membership • Market penetration and demographics • Obstacles to membership • Convenience in refund of capital for withdrawing member

21. Principle 2: democratic member control • Number of general assemblies • Average number of voting members • Percentage of Member in Good Standing (MIGS) to total membership • Quality criteria in determining MIGS • Members’ perception on the importance of AGMs • Members’ perception on their participation in the affairs of the co-op • Number of Board meetings • Compliance of officers Terms of Office

22. Number of committee meetings • Integrity, character and credibility of officers • Members’ perception on the performance and conduct of the officers • Male-female ratio: board & committees • Members’ perception on the way Staff deals with them; staff performance • Members’ perception on the manners services are delivered

23. Principle 3. Member economic participation • Number of members contributing to share capital & savings deposits • Membership patronage to co-op products & services • Paid-up capital and savings mobilization • Perception on the cost of services

24. Members’ perception on interest yield • Co-ops marketing process • Perception on co-op practices in its dealing with members • Allocation of patronage refund and interest of capital • Services to members • Programs for senior citizens

25. Principle 4. Autonomy and independence • Type of capital-up build-up mechanisms beings implemented or adopted • Type of savings mobilization schemes being implemented • Percentage increase (decrease) in working capital • Profitability ratio (net income over gross income) • Compliance with government rules and regulations

26. Principle 5. Education, training & information • Education services/Programs for the last 5 years • Members’ perception on the importance of ownership meetings • Economic capability building program • Culture building programs • Presence of gender related training for staff or general membership • Presence of education programs for successor generation

27. Presence of youth development program • Dissemination of important co-op information on operation • Designation of point person in charge for information and communication • Dissemination of important cooperative information on the organization • Media communication to disseminate information • Capability building program of BOD, Mgt. staff

28. Principle 6. Cooperation among co-ops • Economic participation in other Co-ops • Active support to federation/apex organization • Partnership, cooperation, and/or alliances (business or otherwise) with other co-operatives and civil society formations • Participation in the cooperative federation/union activities/programs/services • Number of board members/officers in co-operative secondary organizations and time spent

29. Principle 7. Concern for community • Environment protection programs and activities • Community infrastructure projects facilitation • Advocacy and education on social development • Cultural, sports and value enhancement program • Participation in local governance programs • Presence of institutional gender-specific programs that were implemented in the last two years • Good employee practice • Community activities

30. The coop staff 1. Commitment to the VMG To determine the level of commitment of the staff to the VMG of the cooperative 2. Enjoyment and satisfaction in work To find out whether the staff finds enjoyment and satisfaction in their work 3. Staff’ feeling of being a part of a supportive team To determine the level of bonding and unity of the staff as an important development block of the cooperative 4. Agreeableness of work environment to health To look at the workplace for its hindrance to healthy living 5. Fairness and objectivity of performance rating To determine the staff’s perception on the fairness and objectivity in rating the staff 6. Reasonability of remuneration and other benefits To determine the staff’s perception on the reasonability and equitability of the system of remuneration and other benefits of the cooperative 7. Long-term future with the co-op To determine the staff’s level of proclivity for long term engagement with the cooperative

31. a future not our own

32. “ A Future Not Our Own ““It helps now and then to step back and take the long viewThe kingdom is not only beyond our efforts; it is even beyond our vision. We accomplish in our lifetime only a tiny fraction of the magnificentEnterprise that is God’s work.Nothing we do is complete, which is another way of saying that the kingdom always lies beyond us. No statement says all that could be said.No prayer fully expresses our faith.No confession brings perfection, no pastoral visit brings wholeness.

33. No program accomplishes the Church’s mission.No set of goals and objectives includes everything.This is what we are about.We plant the seeds that one day will grow.We water the seeds already planted, knowing that they hold future promise.We lay foundations that will need further development.We provide yeast that produces effects far beyond our capabilities.We cannot do everything, and there is a sense of liberation in realizing that.This enables us to do something, and to do it very well.

34. It may be incomplete, but it is a beginning, a step along the way, an opportunity for God’s grace to enter and do the restWe may never see the end results, but that is the difference between the Master Builder and the worker.We are workers, not Master Builders, ministers, not Messiahs.We are prophets of a future not our own.”by Archbishop Oscar Romero

35. Ordinary people are special to us

36. salamat and mabuhay!