How cooperatives generate and absorb social capital has attracted a great deal of attention due to the fact that they are collective organizations owned and democratically managed by their members, and, accordingly, are argued to be closely linked to the nature and dynamics of social capital (Gil, et al, 2021). So that the board of directors are keen to move forward and improve the quality of lives of their members. 30 years ago, the cooperative has a starting capital of PhP 4,400.00 and for the present times their asset has grown to PhP 696,984,392.93. This is a manifestation of the commitment of officers and members to bring the cooperative forward and in the realization of their vision.
In their Cooperative By-Laws, the cooperative may derive its funds from any or all of the following sources: a. Member’s share capital contribution; b. Loans and borrowings including deposits; c. Revolving capital build-up which consist of the deferred payment of patronage refund or interest on share capital; d. Subsidies, grants, legacies, aids, donation, awards and winnings and such other assistance from any local or foreign institution, public or private; b. Retentions from the proceeds of services acquired /goods procured by members; and c. Other sources of funds as may be authorized by law. Likewise, all cooperatives must implement a continuous Capital Build-Up scheme.
Here are the testimonies given by members on how LU MPC strategize to enhance their internal social capital and spread it in their immediate environment and how the internally generated social capital promotes aided the development of cooperatives and as well us their members.
Each time Maria earns extra or gets hold of a substantial amount, she goes to LUMPC to deposit her savings account. Most members will most likely do the same, guaranteed to make their savings earn bigger interest. Only a few members would think of investing in their paid-up capital, which is one of their most important obligations as a member.
Marketing manager, Jovic Panes, has observed this for a long time and wishes to reinforce the collection of paid-up capital, not only among members but also among staff. He drafted his plans on paper and presented them to the CEO and the Board of Directors for approval.
One of the strategies Sir Jovic hatched was holding a raffle draw. For every PhP 100.00, a member invests on his paid-up capital, he receives a raffle ticket. The tickets will be drawn at the end of the month and entitle him to prizes. The more capital you invest, the more chances of winning.
The item a member gets is proportionate to his investment in paid-up capital. For example, if you give an additional PhP 100,000.00 in your existing investment, you get a brand-new 32-inch LED TV set. That’s more pleasurable couch potato time. Smaller amounts will also get you gifts like a bag of groceries, coffee drinks, and household items.
Finally, each payday, every employee gets a salary deduction, but for a good reason. One hundred pesos goes outright to his paid-up capital. For the Board of Directors and the CEO, the amount is much higher – PhP 2,000.00 from their honoraria after every board meeting. But they do not mind. If they want the staff and members to invest in their paid-up capital, then they would have to take the lead.
Look what I get for investing. For investing a paid-up capital of PhP 100,000.00, member, Emma Villanueva, gets a brand-new LED television set.
With these strategies, LUMPC hopes to improve paid-up capital collection over time (Evelyn P. Carpio / Constancia A. De Guzman).