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Showing posts with label common bond of memebrship. Show all posts
Showing posts with label common bond of memebrship. Show all posts

Thursday, November 6, 2025

Cooperatives: Open Doors, but Only for Those Who Belong

Voluntary and Open Ownership in Cooperatives is one of the core principles that guide how cooperatives are formed and managed. It ensures that cooperatives remain inclusive, democratic, and community-oriented, subject to some exemptions expressed by law.

 Voluntary and Open Membership vs. Common Bond of Interest in Cooperatives

These two ideas both relate to cooperative membership, but they emphasize different aspects:

 1. Voluntary and Open Membership (Cooperative Principle)

This is one of the 7 Cooperative Principles from the International Cooperative Alliance (ICA).

Meaning:

*Voluntary – People choose to join or leave the cooperative freely, without force or pressure.

*Open – Membership is open to all persons who are able to use the cooperative’s services and are willing to accept membership responsibilities.

*No discrimination – Race, gender, religion, political belief, or economic status should not be a barrier to joining.

*Key Idea - Everyone qualified is welcome - no one is excluded unfairly.

2. Common Bond of Interest or “Associational Principle”

While cooperatives are open to all, they are not open to everyone in general. Why? Because members must share a common interest or purpose. 

Meaning:

*Members must have a shared bond or objective — like being farmers, employees of the same company, residents of a community, fishermen, vendors, etc.

*This bond helps build trust, unity, and mutual responsibility.

*The cooperative is formed by people with similar needs or economic activities.

*Key Idea- Membership is open - but only to those who share the cooperative’s purpose or field of activity.

Cooperatives are open, but not for just anybody. They are open to all individuals who share the cooperative’s common purpose and agree to its responsibilities.

Simple Example:

*A teachers' cooperative: Voluntary and Open; Any teacher can join; they cannot be excluded for personal reasons like religion or gender.

Common Bond: Only teachers (or employees in the education sector) can be members — not doctors or farmers.

Cooperatives practice voluntary and open membership to welcome all eligible individuals without discrimination — but they also require a common bond of interest to ensure members share the same goals and needs.

Why Not Everyone Can Be Part of a Cooperative

Many people believe that cooperatives are open to everyone — that anyone who wants to join should be allowed in. And while this sounds good, it isn’t entirely true. Cooperatives are built on the principle of voluntary and open membership, but this openness comes with an important condition: members must share a common bond of interest.

A cooperative is not just a business; it is a community of people who face the same challenges and work together for the same goals. Farmers form a cooperative because they understand the hardship of planting, harvesting, and selling crops. Teachers form a cooperative because they share the same salary schedules, loan needs, and workplace conditions. Fisherfolk, drivers, vendors — each group has its own cooperative because they have something in common that binds them together.

So yes, membership is open — but only to those who belong to that shared purpose.

Imagine a farmers’ cooperative suddenly accepting people who do not farm — a store owner, a government employee, or a business investor who has never planted rice or held a plow. These people may have good intentions, but they do not share the same struggles, risks, or needs. They do not understand the life of a farmer. If too many join, the cooperative might start serving interests that are no longer about farmers. Slowly, the cooperative loses its identity.

This is why the law, Republic Act No. 9520 (AN ACT AMENDING THE COOPERATIVE CODE OF THE PHILIPPINES TO BE KNOWN AS THE “PHILIPPINE COOPERATIVE CODE OF 2008”), clearly states that cooperatives must be formed by people with a common bond of interest. It could be based on where they live, what they do for a living, or where they work. This bond is not meant to exclude or discriminate. It is meant to protect the cooperative and make sure it remains relevant to the people it serves.

Because when people understand each other — when they have the same needs, the same dreams — trust is easier to build. Decisions are easier to make. Problems are easier to solve. And the cooperative becomes stronger.

So, when we say cooperatives are open to all, what we really mean is: they are open to all who are part of the group they were created to serve, and who are willing to carry the responsibilities that come with being a member.

The Ties That Bind: What Connects Members of a Cooperative

A cooperative is not just a group of people doing business together. It is a community of individuals who share something deeper — a common bond of interest. This bond is what holds the cooperative together. It creates unity, trust, and a shared sense of responsibility. Without it, a cooperative is just another organization.

In many cooperatives, this bond starts with place, as for example. People who live in the same barangay or town form a cooperative because they face the same community problems — high prices in local stores, lack of access to basic goods, or the need for clean water, credit, or livelihood support. They know each other. They see each other every day. Their lives are connected by their community. That is a residential bond.

In other cases, the bond is work or livelihood. Farmers come together because they all struggle with buying fertilizers, selling crops at fair prices, or accessing capital. Fishermen, drivers, vendors, and teachers do the same. They create cooperatives not because they are friends, but because they share the same daily challenges and opportunities. This is known as an occupational or associational bond.

There are also cooperatives formed within offices or institutions. Employees working for the same school, hospital, factory, or government agency often build a cooperative so they can save money, apply for loans, and support one another during emergencies. They trust each other because they work under the same employer, follow the same policies, and depend on the same salaries. This is called an institutional bond.

Some cooperatives are born from a shared identity or advocacy. These include cooperatives of women, youth, elderly citizens, or indigenous communities. Their bond is not just economic — it is social. They come together because they understand one another’s struggles and stand together for the same cause.

No matter what form it takes, this common bond is what makes a cooperative unique. It gives members a sense of belonging. It ensures that decisions are made not for personal gain, but for the good of all. The cooperative becomes a reflection of the members’ shared life — their work, their community, their dreams.

That is why cooperatives are strong: because they are built not on money alone, but on trust, shared experiences, and a common purpose.

Not everyone can or should join — and that’s not to keep people out, but to keep the cooperative true to its purpose. 

FEATURED POST

Cooperatives: Open Doors, but Only for Those Who Belong

Voluntary and Open Ownership in Cooperatives is one of the core principles that guide how cooperatives are formed and managed. It ensures th...