PWU-CDCEC CALAMBA

ALVA CENTER ROSAL ST. BRGY. UNO, CROSSING CALAMBA CITY, LAGUNA
Contact No.: 0922-821-6938/0939-904-3185/0917-527-5465 Tel. No: (049) 508-1963/
(02)420-8209

Chapter 1

THE PROBLEM AND ITS BACKGROUND

Introduction
Corporate Social Responsibility is the new religion in business.
Investor-owned companies are now rushing to compete on the basis of who
is more socially responsible, or who can best deliver its responsibility.
Social responsibility is the obligation of organization to make decision
and take actions that will enhance the welfare and interest of society as well
as the organization. Social responsibility is quite important to the society,
organization and human. There are several reasons to support the
importance of social responsibilities. It is related to the ethical responsibility,
and differentiates into difference level of social responsibilities, which is
economic, legal, ethical and philanthropic responsibility. There are six main
areas of social responsibility, the employees, providers of finance, consumer,
community and environment, and other organizations or groups.
For cooperative, social responsibility is their nature. As member-owned
and democratically-controlled enterprises, cooperative has a different and
unique approach to social responsibility. The view among cooperative
enterprises is that social responsibility is something which is a voluntary and
natural function of all cooperatives emanating from their values and
principles.

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1

PWU-CDCEC CALAMBA
ALVA CENTER ROSAL ST. BRGY. UNO, CROSSING CALAMBA CITY, LAGUNA
Contact No.: 0922-821-6938/0939-904-3185/0917-527-5465 Tel. No: (049) 508-1963/
(02)420-8209

The movement of cooperative social responsibility has given the

impetus to shift from simply doing good things in the community to one that
embrace the notion of improved accountability to stakeholders and the need
to explain themselves, and to maintain a license to operate. The idea of
social responsibility has opened up new understanding that all cooperative
organizations affect far more members than was perhaps realized in the past
and that these stakeholders have a legitimate right to at least know what is
going on, or even have some influence on them.
Cooperatives are known for their commitments to social responsibility.
According

to

Republic

Act

No.

9520

also

known

as

Philippine

Cooperative Code of 2008, cooperative should practiced transparency and

accountability. The cooperative are required to submit social responsibility
audit to the Cooperative Development Authority (CDA).
Cooperative Development Authority (CDA) was created by virtue of
Republic Act No. 9520 in compliance with the provision of Section 15,
Article XII of the Philippine Constitution of 1987 which mandates Congress to
create an agency to promote the viability and growth of cooperatives as
instruments for equity, social justice and economic development. CDA is the
lead government agency in the registration, regulation, promotion and
development of cooperatives.
Cooperatives are defined as autonomous associations of persons
united voluntarily to meet their common economic, social and cultural needs

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2

PWU-CDCEC CALAMBA

PAGE

ALVA CENTER ROSAL ST. BRGY. UNO, CROSSING CALAMBA CITY, LAGUNA
Contact No.: 0922-821-6938/0939-904-3185/0917-527-5465 Tel. No: (049) 508-1963/
(02)420-8209

and aspirations through a jointly-owned and democratically- controlled

enterprises.
Sulong sa Tagumpay Multi-Purpose Cooperative (STMC) has already
gone a long way from the time when it took roots in Philips
Semiconductors Calamba, No. 9 Mt. Drive, Light Industry and Science Park II,
Brgy. Lamesa, Calamba City, Laguna. Now, STMC stands tall as landmark of
cooperative endeavors in Laguna.
Sulong sa Tagumpay Muliti-Purpose Cooperative is one of the most
viable and stable institutional based cooperative in the Region IV. Its
membership

is

about

1,600

individuals

all

regular

employees

of

STMicroelectronics Inc. and ST-Ericsson Philippines Inc. It offers a wide range

of basic services to its stakeholders, and presently it renders credit services,
financial and social responsibility, coop education and training. In 2007, it
won most outstanding cooperative in Laguna conferred by the Cooperative
Development Authority, making it number two in Laguna based on total
asset as of December 31, 2012.
The cooperatives organizational structures are good training grounds
for productive citizenship. Through the dynamic workings of the cooperative
structures, the members are afforded the opportunity to see a functioning
democracy and at work, to learn the enabling endowment of the value of
self-help and self-responsibility, to understand in a non-abstract way equality
and equity, to practice social responsibility and the caring for others, and of
solidarity, honesty, openness values that a cooperative holds. Through

PWU-CDCEC CALAMBA
ALVA CENTER ROSAL ST. BRGY. UNO, CROSSING CALAMBA CITY, LAGUNA
Contact No.: 0922-821-6938/0939-904-3185/0917-527-5465 Tel. No: (049) 508-1963/
(02)420-8209

their active participation, the members in consequence assimilate the

essences of these values, in a way that is incarnate and authentic. And
through these members, who in turn become purveyors and missioners of
these values to the community, the community gains, earns its peace, and
becomes a better place for all.

Theoretical Framework
This study is anchored on the code of social responsibility. Through
this theory social audit reports has been established.
The code of social responsibility framework runs through with the
seven cooperative principles. The principles identify and fastidiously
distinguish

the

cooperatives

as

business

enterprises

and

peoples

organizations. They make for the cooperatives uniqueness, so distinct from

any other businesses or community organizations, and invariably spell the
cooperative difference. These principles are the empowering framework by
which cooperatives move on in their daily activities, without being lost in the
maze of their own operations. These are also the energizing tools upon which
the cooperatives look and grasp the future and assuredly cope up with the
futures concomitant complications.
Cooperatives around the world generally operate according to the
same core principles and values, adopted by the International Cooperative Alliance in 1995. Cooperatives trace the roots of these principles

PAGE
4

PWU-CDCEC CALAMBA
ALVA CENTER ROSAL ST. BRGY. UNO, CROSSING CALAMBA CITY, LAGUNA
Contact No.: 0922-821-6938/0939-904-3185/0917-527-5465 Tel. No: (049) 508-1963/
(02)420-8209

to the first modern cooperative founded in Rochdale, England in 1844. These

principles are also embodied in RA9520. Approved and enacted into law in
2008.
These principles are: Voluntary and open membership. This
principle affirms the fundamental importance of people choosing by their
own volition to make commitments to their cooperatives. This further affirms
the universally accepted general commitment to recognize the fundamental
dignity of all persons regardless of gender, social status and cultural
preferences, race, political affiliation and religious beliefs, as long as they
have uses for their cooperatives products and services and are willing to
accept the obligations of membership.
Second

Principle

is

democratic

member

control.

Democracy

generally refers to rights the right to vote and be voted upon, equal voting
rights, etc. and to obligations. In STMC, however, democracy is not only
about rights and obligations of members; it most importantly integrates in
the idea of democracy, the fostering itself and the promotions of the spirit of
democracy within the organization.
The

third

principle

is

Member

economic

participation.

The

economic participation of the members in STMC is a three-sided affair. The

first side is the members capital contribution, which comes in four ways: (a)
the subscription of share capital, (b) putting in of savings deposits, (c) the
building-up of the collectively owned reserves, (d) the plowing back of

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5

PWU-CDCEC CALAMBA

PAGE

ALVA CENTER ROSAL ST. BRGY. UNO, CROSSING CALAMBA CITY, LAGUNA
Contact No.: 0922-821-6938/0939-904-3185/0917-527-5465 Tel. No: (049) 508-1963/
(02)420-8209

dividends in the form of new shares, and (e) participation in special fund
campaigns for special projects. The second side is the members enjoyment
of the fruits out of the usage of the products and services of the cooperative.
Fourth principle is autonomy and independence. This principle
addresses the essential nature of STMC to be autonomous. This means
vigilance, in various ways, of its independence. When it enters into
agreements, either with government or with other business entities,
cooperatives have to define in very clear terms that relationship with them,
in the same way that businesses controlled by capital are autonomous in
their dealings with government or with other businesses.
Fifth principle is Education, training and information. Education
and training are vital components of STMs life. Education is engaging the
minds

of

members,

elected

officers,

managers

and

employees

to

comprehend fully the complexity and richness of cooperative thoughts and

actions. Training means making sure that all those who are, in one way or
another, involved in cooperatives have or are fully provided with skills that
are required to carry out their functions efficiently, effectively and
responsibly. Training also includes preparing the young for leadership
positions and good citizenship in the future.
Sixth principle is Cooperation among cooperatives. It has to be
recognized that cooperators have in common their individual vulnerability
and powerlessness in the marketplace, and the inadequacy of their personal

PWU-CDCEC CALAMBA
ALVA CENTER ROSAL ST. BRGY. UNO, CROSSING CALAMBA CITY, LAGUNA
Contact No.: 0922-821-6938/0939-904-3185/0917-527-5465 Tel. No: (049) 508-1963/
(02)420-8209

wealth to meet their needs for subsistence and welfare. For cooperation to
be practiced by economically vulnerable people, the only way is for them to
act together, to organize themselves into cooperatives. That is one of the
essences of cooperatives. However, cooperatives can only achieve much on
a local level this one has to be recognized. Beyond are so much more. To
achieve full potential, cooperatives must enter into practical and rigorous
collaboration with other cooperatives. This can be done through alliances,
mergers or joint ventures, by way of large-scale business enterprises that
can have real impact on the members and the community.
The

seventh

and

last

cooperative

principle

is

Concern

for

community. STMC exist primarily for the benefit of its members. Because of
this reason, they carry with them a very strong affinity with the communities
of the members.
The seven principles are not simply measuring sticks. They are
guidelines

upon

which

the

stakeholders

continuously

evaluate

the

cooperative in a more socially responsible way. They equally raise the

question of how the cooperatives can better carry out their work in
conformity with the directions suggested in each of the principles, as they
raise the challenge of how the cooperatives conform to the directions and
practices as suggested by the integrated application of all the principles.
Cooperatives are independent of government and other private
businesses and for social responsibility to be accepted by a conscientious

PAGE
7

PWU-CDCEC CALAMBA
ALVA CENTER ROSAL ST. BRGY. UNO, CROSSING CALAMBA CITY, LAGUNA
Contact No.: 0922-821-6938/0939-904-3185/0917-527-5465 Tel. No: (049) 508-1963/
(02)420-8209

business person, it should be framed in such a way that the entire ranges of
business responsibilities are embraced.
Archie Carroll (2000), a business management professor at the
University of Georgia: The social responsibility of business encompasses the
four

kinds

of

social

responsibilities:

economic,

legal,

ethical

and

philanthropic. Furthermore, these four categories or components of social

responsibility might be depicted as a pyramid.

Figure 1. The Pyramid of Corporate Social Responsibility

PAGE
8

PWU-CDCEC CALAMBA
ALVA CENTER ROSAL ST. BRGY. UNO, CROSSING CALAMBA CITY, LAGUNA
Contact No.: 0922-821-6938/0939-904-3185/0917-527-5465 Tel. No: (049) 508-1963/
(02)420-8209

At the most basic level, companies have an economic responsibility

to be profitable so that they can provide return on investment to their
owners or investors, create jobs for the community, and contribute goods
and services to the economy.
Of course, businesses are also expected to obey all laws and
regulations. Legal responsibilities reflect a view of "codified ethics" in the
sense that they embody basic notions of fair operations as established by
our lawmakers. They are depicted as the next layer on the pyramid to
portray their historical development, but they are appropriately seen as
coexisting with economic responsibilities as fundamental precepts of the free
enterprise system.
Business
behaviour

in

ethics
the

comprises principles

world

of

business.

and standards

Although

economic

that guide
and

legal

responsibilities embody ethical norms about fairness and justice, ethical

responsibilities embrace those activities and practices that are expected or
prohibited by societal members even though they are not codified into law.
Ethical responsibilities embody those standards, norms, or expectations that
reflect a concern for what consumers, employees, shareholders, and the
community regard as fair, just, or in keeping with the respect or protection of
stakeholders' moral rights.
Finally, philanthropic responsibility refers to activities that are not
required of business but promote human welfare or goodwill. Philanthropy
encompasses those corporate actions that are in response to societys

PAGE
9

PWU-CDCEC CALAMBA
ALVA CENTER ROSAL ST. BRGY. UNO, CROSSING CALAMBA CITY, LAGUNA
Contact No.: 0922-821-6938/0939-904-3185/0917-527-5465 Tel. No: (049) 508-1963/
(02)420-8209

expectation that businesses be good corporate citizens. This includes

actively engaging in acts or programs to promote human welfare or goodwill.
The

distinguishing

feature

between

philanthropy

and

ethical

responsibilities is that the former are not expected in an ethical or moral

sense. Communities desire firms to contribute their money, facilities, and
employee time to humanitarian programs or purposes, but they do not
regard the firms as unethical if they do not provide the desired level.
Therefore, philanthropy is more discretionary or voluntary on the part of
businesses even though there is always the societal expectation that
businesses provide it.
Based from the above-cited theoretical framework, the proponents of
the study have conceptualized his research as shown in the figure given
below.
INPUT

Code of Social
Responsibility
of STMC
OUTPUT
based on the Seven
Cooperative Principles
Open & Voluntary
Membership
Democratic Members
Control
Members Economic
Participation
Autonomy & Independence
Education, Training &
Information
Cooperation Among
Cooperatives
Concern for Community
Promotion of the Welfare
of Stakeholders based on
the four components of
social responsibility
Economic Responsibility
Legal Responsibility

PROCESS
Identification of the
problems
Data Analysis
Data Collection and
Organization
Comparative Analysis
Difference in
assessments on
observance of CSR

Correlation Analysis
Relationship between
observance of CSR and
promotion of welfare of
stakeholders of STMC

Developed
Guidelines on
Managing Social
Responsibilities

PAGE
10

PWU-CDCEC CALAMBA
ALVA CENTER ROSAL ST. BRGY. UNO, CROSSING CALAMBA CITY, LAGUNA
Contact No.: 0922-821-6938/0939-904-3185/0917-527-5465 Tel. No: (049) 508-1963/
(02)420-8209

Feedback

Figure 2
Paradigm of the study
The researcher made use of the paradigm of the study as shown in
Figure 2 to formulate Guidelines for managing social responsibility.
The first block are the inputs of the study which contain the code of
social responsibility based on the seven cooperative principles. It also
includes the promotion of the welfare of stakeholders based on the four
components of Social Responsibility.
On the second block are the processes conducted in the study, it
includes problem identification, data analysis with regards to data collection
and organization, comparative analysis; to compare the assessments of the
officers and members on the observance of code of social responsibility and
lastly the correlation analysis to compare the relationship of code of social
responsibility and the stakeholders welfare.
The expected output of the study is to develop guidelines managing
social responsibilities.
Statement of the Problem

PAGE
11

PWU-CDCEC CALAMBA
ALVA CENTER ROSAL ST. BRGY. UNO, CROSSING CALAMBA CITY, LAGUNA
Contact No.: 0922-821-6938/0939-904-3185/0917-527-5465 Tel. No: (049) 508-1963/
(02)420-8209

This study aimed to make an intensive study of Sulong sa Tagumpay

Multi-Purpose Cooperative observance of its code of social responsibility for
the welfare of its stakeholders.
Specifically, it sought answers to the following questions:
1.

How is the code of social responsibility at Sulong sa Tagumpay

Multi-purpose Cooperative (STMC) assessed by its officers and
members observed in terms of the following cooperative
principles:
1.1 open and voluntary memberships
1.2 democratic members control
1.3 members economic participation
1.4 autonomy and independence
1.5 education, training and information
1.6 co-operations among cooperatives
1.7 concerns for community

2.

Is there a difference in the assessments of the two groups of

respondents

on the

observance of

the code

of

social

responsibility along the above mentioned aspects?

3.

How is the welfare of its stakeholders promoted in terms of the

following social responsibility components:
3.1 Economic responsibility
3.2 Legal responsibility

PAGE
12

PWU-CDCEC CALAMBA
ALVA CENTER ROSAL ST. BRGY. UNO, CROSSING CALAMBA CITY, LAGUNA
Contact No.: 0922-821-6938/0939-904-3185/0917-527-5465 Tel. No: (049) 508-1963/
(02)420-8209

3.3 Ethical responsibility

3.4 Philanthropic responsibility
4.

To what extent is the observance of the code of social

responsibility for cooperative related to the promotion of the
welfare of the stakeholders of ST Multi-purpose cooperative?

5.

Based on the findings of the study, what action plan can be

proposed to further improve the observance of the code of
social responsibility?

Significance of the Study

The researcher deems that the following would benefit from the current
study:
Researcher. The study would give him ideas on how important the
Code of Social Responsibility in cooperative. If time comes he becomes a
Manager or a Board of Director, the knowledge he gains from the study
would give him deeper understanding of the reasons why it is important to
be socially responsible.

PAGE
13

PWU-CDCEC CALAMBA
ALVA CENTER ROSAL ST. BRGY. UNO, CROSSING CALAMBA CITY, LAGUNA
Contact No.: 0922-821-6938/0939-904-3185/0917-527-5465 Tel. No: (049) 508-1963/
(02)420-8209

The Company. The study may provide accurate information on the

evaluation of Code of Social Responsibility in the company as observed by
the employees. In addition, this study will serve as an eye opener to the
management to understand and realize the essence of social responsibility
and its impact to the organization.
The Staff. Regarding their employees, cooperatives have since their
foundations always favored education and training so that employees feel
considered not only as a workforce, but as human beings to be respected
and whose wellbeing matters.
The Coop Members. The study will encourage the members to
development and support a wide range of social and cultural initiatives.
Future Researcher. The study may provide empirical evidence of a
current scenario which they want to further explore and study in the future.
This may also serve as their basis for other research work related to social
responsibility and stakeholders welfare.

Scope and Limitation of the Study

This study discusses the observance of the code of social
responsibility of Sulong sa Tagumpay Multi-purpose Cooperative.
involves the Officers and members of the cooperative.

This

PAGE
14

PWU-CDCEC CALAMBA
ALVA CENTER ROSAL ST. BRGY. UNO, CROSSING CALAMBA CITY, LAGUNA
Contact No.: 0922-821-6938/0939-904-3185/0917-527-5465 Tel. No: (049) 508-1963/
(02)420-8209

A social responsibility begins by defining the scope and focus of the

entire procedure. The scope and focus includes the areas of decisions and
actions, the objectives of the whole exercise and the objectives of each area
of concern and the measurement methodologies.
The scope and focus may incorporate all the areas of decisions and
actions that are of concern to social responsibility at STMC. It is good, of
course, to look at how the STMC performs in the most comprehensive way.

Definition of Terms
To facilitate better understanding of the study the following terms are
define operationally.
Accountability.

It refers to the obligation of organization to

account for its activities, accept responsibility for them, and to disclose the
results in a transparent manner. It also includes the responsibility for money
or other entrusted property.
Capital Contribution. It is commonly known as paid-up capital. It
can be separate account within the stakeholders equity section of the
balance sheet, or it can be split between additional paid in capital account
and a common stock account.
Cooperativism. It comes from the verb to cooperate, that also
means to work together with people to realize the same objective.
Cooperatives. It is defined as autonomous associations of persons
united voluntarily to meet their common economic, social and cultural needs

PAGE
15

PWU-CDCEC CALAMBA
ALVA CENTER ROSAL ST. BRGY. UNO, CROSSING CALAMBA CITY, LAGUNA
Contact No.: 0922-821-6938/0939-904-3185/0917-527-5465 Tel. No: (049) 508-1963/
(02)420-8209

and aspirations through a jointly-owned and democratically controlled

enterprises.
Corporate

Social

Responsibility.

It

refers

to

the

continuing

commitment by business to behave ethically and contribute to economic

development while improving the quality of life of the workforce and their
families as well as of the local community and society at large.
Democracy. It means fundamental to highlight the cooperative
difference and represents members and governance. Criteria include
democratic participation, education, training, diversity, Board representation,
dividends and satisfaction.
Dividend. This means that for every share you own, you are paid a
portion of the cooperatives earnings.
Economic Responsibility. It refers to the ultimate goal of any
business to make a profit and create shareholder value by providing goods
and services that people want to buy or invest in.
Ethical Responsibilities. It Involves those standards, norms, or
expectations that reflect a concern for what consumers, employees,
shareholders, and the community regard as fair, just, or in keeping with the
respect or protection of stakeholders' moral rights
Good Citizenship. It means to conduct oneself in accordance with
the rights, duties, and privileges of being inhabitant of a geographical
location by means of birth or naturalization.

PAGE
16

PWU-CDCEC CALAMBA
ALVA CENTER ROSAL ST. BRGY. UNO, CROSSING CALAMBA CITY, LAGUNA
Contact No.: 0922-821-6938/0939-904-3185/0917-527-5465 Tel. No: (049) 508-1963/
(02)420-8209

Institutional Based Cooperative. It refers to cooperative that

established by the member of a private corporation. It operates inside the
company. Their members are all regular employees who voluntarily joined
the cooperative.
Legal responsibilities. It pertains a view of "codified ethics" in the
sense that they embody basic notions of fair operations as established by
our lawmakers.
Patronage Refund. It is the return of profits to the member customer.
Philanthropic Responsibilities. It encompasses those corporate
actions that are in response to societys expectation that businesses be good
corporate citizens.
Principles. It refers to guidelines by which cooperative put their
values in to practices.
Self-Help Organization. It is define as a group of people who come
together to form savings and credit organization. This process creates an
ethic that focuses on savings first.
Social Audit. It refers to the procedure that simply looks on a
business organizations own currently running documentation and reporting.
Yet: it allows the organization to assess its social impact and ethical
performance

vis--vis

its

stated

vision-mission-goals;

it

enables

the

organization to develop a process within, whereby it can account for its social
performance, report on that performance and draw up an action plan to
improve that performance.

PAGE
17

PWU-CDCEC CALAMBA
ALVA CENTER ROSAL ST. BRGY. UNO, CROSSING CALAMBA CITY, LAGUNA
Contact No.: 0922-821-6938/0939-904-3185/0917-527-5465 Tel. No: (049) 508-1963/
(02)420-8209

Sustainable Development. It refers to the development that meets

the needs of the present without compromising the ability of future
generations to meet their own needs.
Stakeholders. Refer to Officers and members of Sulong sa
Tagumpay Multi-Purpose Cooperative.
Values. It Means cooperative are based on the values of self-help, selfresponsibility, democracy, equality, equity and solidarity. In the tradition of
their founders, co-cooperative members believe in the ethical values of
honesty, openness, social responsibility and caring for others.

Statement of the Problem

This study aimed to make an intensive study of Sulong sa Tagumpay
Multi-Purpose Cooperative observance of its code of social responsibility for
the welfare of its stakeholders.
Specifically, it sought answers to the following questions:
1. How is the code of social responsibility at Sulong sa Tagumpay Multipurpose Cooperative (STMC) assessed by its officers and members
observed in terms of the following cooperative principles:
1.1 open and voluntary memberships
1.2 democratic members control
1.3 members economic participation
1.4 autonomy and independence
1.5 education, training and information

PAGE
18

PWU-CDCEC CALAMBA
ALVA CENTER ROSAL ST. BRGY. UNO, CROSSING CALAMBA CITY, LAGUNA
Contact No.: 0922-821-6938/0939-904-3185/0917-527-5465 Tel. No: (049) 508-1963/
(02)420-8209

1.6 co-operations among cooperatives

1.7 concerns for community
2. Is there a difference in the assessments of the two groups of
respondents on the observance of the code of social responsibility
along the above mentioned aspects?
3. How is the welfare of its stakeholders promoted in terms of the
following social responsibility components:
3.1 Economic responsibility
3.2 Legal responsibility
3.3 Ethical responsibility
3.4 Philanthropic responsibility
4. To what extent is the observance of the code of social responsibility for
cooperative related to the promotion of the welfare of the stakeholders
of ST Multi-purpose cooperative?
5. Based on the findings of the study, what action plan can be proposed
to further improve the observance of the code of social responsibility?

Significance of the Study

The researcher deems that the following would benefit from the current
study:
Researcher. The study would give him ideas on how important the
Code of Social Responsibility in cooperative. If time comes he becomes a
Manager or a Board of Director, the knowledge he gains from the study

PAGE
19

PWU-CDCEC CALAMBA
ALVA CENTER ROSAL ST. BRGY. UNO, CROSSING CALAMBA CITY, LAGUNA
Contact No.: 0922-821-6938/0939-904-3185/0917-527-5465 Tel. No: (049) 508-1963/
(02)420-8209

would give him deeper understanding of the reasons why it is important to

be socially responsible.
The Company. The study may provide accurate information on the
evaluation of Code of Social Responsibility in the company as observed by
the employees. In addition, this study will serve as an eye opener to the
management to understand and realize the essence of social responsibility
and its impact to the organization.
The Staff. Regarding their employees, cooperatives have since their
foundations always favored education and training so that employees feel
considered not only as a workforce, but as human beings to be respected
and whose wellbeing matters.
The Coop Members. The study will encourage the members to
development and support a wide range of social and cultural initiatives.
Future Researcher. The study may provide empirical evidence of a
current scenario which they want to further explore and study in the future.
This may also serve as their basis for other research work related to social
responsibility and stakeholders welfare.

Scope and Limitation of the Study

This study discusses the observance of the code of social
responsibility of Sulong sa Tagumpay Multi-purpose Cooperative.
involves the Officers and members of the cooperative.

This

PAGE
20

PWU-CDCEC CALAMBA
ALVA CENTER ROSAL ST. BRGY. UNO, CROSSING CALAMBA CITY, LAGUNA
Contact No.: 0922-821-6938/0939-904-3185/0917-527-5465 Tel. No: (049) 508-1963/
(02)420-8209

A social responsibility begins by defining the scope and focus of the

entire procedure. The scope and focus includes the areas of decisions and
actions, the objectives of the whole exercise and the objectives of each area
of concern and the measurement methodologies.
The scope and focus may incorporate all the areas of decisions and
actions that are of concern to social responsibility at STMC. It is good, of
course, to look at how the STMC performs in the most comprehensive way.

Definition of Terms
To facilitate better understanding of the study the following terms are
define operationally.
Accountability.

It refers to the obligation of organization to

account for its activities, accept responsibility for them, and to disclose the
results in a transparent manner. It also includes the responsibility for money
or other entrusted property.
Capital Contribution. It is commonly known as paid-up capital. It
can be separate account within the stakeholders equity section of the
balance sheet, or it can be split between additional paid in capital account
and a common stock account.
Cooperativism. It comes from the verb to cooperate, that also
means to work together with people to realize the same objective.
Cooperatives. It is defined as autonomous associations of persons
united voluntarily to meet their common economic, social and cultural needs

PAGE
21

PWU-CDCEC CALAMBA
ALVA CENTER ROSAL ST. BRGY. UNO, CROSSING CALAMBA CITY, LAGUNA
Contact No.: 0922-821-6938/0939-904-3185/0917-527-5465 Tel. No: (049) 508-1963/
(02)420-8209

and aspirations through a jointly-owned and democratically controlled

enterprises.
Corporate

Social

Responsibility.

It

refers

to

the

continuing

commitment by business to behave ethically and contribute to economic

development while improving the quality of life of the workforce and their
families as well as of the local community and society at large.
Democracy. It means fundamental to highlight the cooperative
difference and represents members and governance. Criteria include
democratic participation, education, training, diversity, Board representation,
dividends and satisfaction.
Dividend. This means that for every share you own, you are paid a
portion of the cooperatives earnings.
Economic Responsibility. It refers to the ultimate goal of any
business to make a profit and create shareholder value by providing goods
and services that people want to buy or invest in.
Ethical Responsibilities. It Involves those standards, norms, or
expectations that reflect a concern for what consumers, employees,
shareholders, and the community regard as fair, just, or in keeping with the
respect or protection of stakeholders' moral rights
Good Citizenship. It means to conduct oneself in accordance with
the rights, duties, and privileges of being inhabitant of a geographical
location by means of birth or naturalization.

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PWU-CDCEC CALAMBA
ALVA CENTER ROSAL ST. BRGY. UNO, CROSSING CALAMBA CITY, LAGUNA
Contact No.: 0922-821-6938/0939-904-3185/0917-527-5465 Tel. No: (049) 508-1963/
(02)420-8209

Institutional Based Cooperative. It refers to cooperative that

established by the member of a private corporation. It operates inside the
company. Their members are all regular employees who voluntarily joined
the cooperative.
Legal responsibilities. It pertains a view of "codified ethics" in the
sense that they embody basic notions of fair operations as established by
our lawmakers.
Patronage Refund. It is the return of profits to the member customer.
Philanthropic Responsibilities. It encompasses those corporate
actions that are in response to societys expectation that businesses be good
corporate citizens.
Principles. It refers to guidelines by which cooperative put their
values in to practices.
Self-Help Organization. It is define as a group of people who come
together to form savings and credit organization. This process creates an
ethic that focuses on savings first.
Social Audit. It refers to the procedure that simply looks on a
business organizations own currently running documentation and reporting.
Yet: it allows the organization to assess its social impact and ethical
performance

vis--vis

its

stated

vision-mission-goals;

it

enables

the

organization to develop a process within, whereby it can account for its social
performance, report on that performance and draw up an action plan to
improve that performance.

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PWU-CDCEC CALAMBA
ALVA CENTER ROSAL ST. BRGY. UNO, CROSSING CALAMBA CITY, LAGUNA
Contact No.: 0922-821-6938/0939-904-3185/0917-527-5465 Tel. No: (049) 508-1963/
(02)420-8209

Sustainable Development. It refers to the development that meets

the needs of the present without compromising the ability of future
generations to meet their own needs.
Stakeholders. Refer to Officers and members of Sulong sa
Tagumpay Multi-Purpose Cooperative.
Values. It Means cooperative are based on the values of self-help, selfresponsibility, democracy, equality, equity and solidarity. In the tradition of
their founders, co-cooperative members believe in the ethical values of
honesty, openness, social responsibility and caring for others.

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