UNDERSTANDING CULTURE,

SOCIETY, AND POLITICS

(GRADE 12)
LEARNING COMPETENCIES:
1. Describe the organized nature of social life and rules governing behavior.

CHAPTER 6: Social and Cultural Institutions

LESSON 2 – Nonstate Institutions
Non-state Institutions
This are groups and organizations which operate outside the support of any state or
government. They are referred to be ‘stateless’ since they are considered to be independent of
any state, although, they usually collaborate with the government in implementing projects. Non-
state institutions assume different functions and focus on a specific objective. In general, they
develop certain services needed by members of the society for their progress.
1. Banks

 a financial institution licensed to provide several financial services to different types of

customers, mainly for their deposit and lending function, grow through an interest rate.
Banks also provide loans, at a higher interest rate, to customers who need money either
for personal consumption or for investment and businesses
 act as a custodian of customer’s money, which help guarantee the safety of each
deposit
 Some secondary functions of a bank include money remittance, which make it easier for
people to send money from one place to another. This holds importance especially for
overseas Filipino workers (OFWs) who provide financial assistance to their families in
the Philippines
 Also include currency exchange, allowing customers to convert foreign currencies to
another currency they need and safety deposit boxes, which provides customers a safe
place to keep their priced possessions (e.g. gold, silver, or jewelries)

TYPES OF BANKS
A. Retail bank - focuses on consumers or the general public as its customers
B. Commercial bank - focuses on businesses and businessmen as its main customers and
provides short term loans for businessmen to be used for investment purposes.
C. Investment or industrial bank - provides medium and long-term loans and deposits to
business industries.
D. Agricultural banks - caters to the financial needs of farmers and the farming industry. They
provide short-term and long-term loans to facilitate agricultural activities, used for buying seeds,
fertilizers, land, or any materials needed for farming.
The Bangko Sentral ng Pilipinas is the central bank of the Philippines. A central bank is
the only banking institution established through a special law of the government, which makes
the government of great influence to its central bank.
2. Corporations

 an organization, created by a group of people known as shareholders, which is legally

recognized to act as a single person in carrying out certain goals and objectives
 As a ‘legal person’, a corporation is mandated to enjoy the rights, privileges, and
responsibilities of an individual. Using its own name, a corporation has the right to enter
 into contracts, to hire employees, and to loan and borrow money. It is also authorized to
have its own assets.
 Any corporation-owned property belongs to the corporation itself and not to the owners
of the corporation
 Created to operate businesses and to pursue a common objective, may it be profit-
oriented or not
 A distinct and separate entity from the people who own it. This enables the corporation
to have powers and liabilities of its own
 Any debt of the corporation is the responsibility of only the corporation itself;
shareholders cannot be personally held accountable for these debts. This feature also
enables the corporation to sue and be sued in behalf of its name. Any lawsuits directed
to the corporation is solely the responsibility of the corporation itself and not of its
owners.

TYPES OF CORPORATION 
A. Business corporation - created to operate and to generate profit. (companies like
McDonald’s and Starbucks are examples of a business corporation)
B. Non-profit corporation - established with a purpose of serving the public rather than
pursuing profits.
C. A corporation whose income is taxed through the corporation itself is a C-corporation.
D. S-corporation - taxed through its shareholders. (An S-corporation can only have less than
100 shareholders, unlike a C-corporation which can have an unlimited number of shareholders)
3. Cooperatives

 an autonomous association of persons united voluntarily to meet their common

economic, social, and cultural needs and aspirations, through a jointly owned and
democratically controlled enterprise.”
 Members of a cooperative usually joins together in order to achieve a specific objective,
an objective which usually benefits the members of the organization itself
 Cooperatives are mainly structured to benefit its members and to satisfy its members’
needs. In a cooperative, the people who use its products or services are the same
people who own and control the organization. Cooperatives exist among different
industries and are composed of different types of people, may it be farmers, consumers,
or workers.

TYPES OF COOPERATIVES
A. Credit cooperative provides financial services to its members, including securing savings
and creating funds to be used for issuing loans.
B. Consumer cooperative operates mainly to obtain and distribute products and commodities
to its customers, both members and non-members.
C. Producer cooperatives aids those in the sector of production, either agricultural or
industrial.
D. Service cooperative (or a worker cooperative) concentrates on helping workers in the
service-oriented occupations (i.e. health care, transportation, labor) by creating employment
opportunities and other benefits to its members.
E. Multi-purpose cooperative undertakes two or more functions of different cooperatives. For
example, multi-purpose cooperative could act as a consumer cooperative and establish a
supermarket. At the same time, it could also provide financial services like a credit cooperative.
4. Trade Unions

 an organization with a membership composed of workers or employees from related

fields, which aim to represent the interests and rights of its members, both in the
workplace and in the society
 While an individual has the capacity to demand better conditions from his employer,
trade unions recognize that a unity of several employees would act as a more powerful
tool in advancing these interests. This is how trade unions became the voice of the
workers to the management; they serve as link between employees and their employers.
Trade unions work to improve certain issues like wage adjustment, good working
environment, and rewards and other benefits.

TYPES OF TRADE UNIONS

A. General unions represents workers with a range of jobs and skills, from different industries
and companies. (An example of this type of union is a trade union of drivers, janitors and office
workers)
B. Industrial unions are composed of workers from one particular industry, across different
levels of the hierarchy. (A trade union of all employees who work in the mining industry (with
different levels and positions) is an example of an industrial union)
C. Craft union seeks to represent skilled workers doing the same work who may be employed
in different industries. (A craft union of carpenters is one example)
D. White-collar union is composed of professionals doing similar jobs across different
industries. (A trade union of teachers and professors is an example of a white-collar union)
5. Transnational Advocacy Groups

 The word ‘transnational’ denotes something that goes beyond one’s national borders.
‘Advocacy’ can be defined as issues or causes that are being defended or supported by
a certain group of people known as advocates. A ‘group’, as you were familiarized in
previous lessons, is generally defined as a collection of individuals with significant
relations among each other.
 Collection of actors (individuals or groups) characterized by their fluid and open relations
with each other, united by their commitment to work on and defend certain issues and
causes that are relevant across several nations.
 They “use the power of information, ideas, and strategies to influence the value context
within which states make policies”.
 Transnational advocacy groups are also referred to as “transnational advocacy
networks” due to the nature of actors’ connection with each other.
 The main function of a transnational advocacy group is the creation and development of
advocacies and campaigns about certain causes, issues, ideas, values and beliefs.
These campaigns aim to motivate changes in policies, which are necessary for the
betterment of people involved.
6. Development Agencies

 Development agencies were formed as a response to crises like war damage and
industrial decline. In some countries, such agencies were established with the hope of
stimulating economic development, post- war.
  Development agencies have come a long way since they were first established, as
thousands of them are currently operating within the globe.
In a research commissioned by the Organization for Economic Cooperation and Development
(OECD), the roles of development agencies may include;
A. Strategic roles, such as coordinating with local actors and international donors, monitoring
the local economy, and strategic planning for economic and local development;
B. Asset and investment roles, such as land and property management, funding and investing in
local development projects, income generation, and provision of grants or donations for other
organizations;
C. Innovation, enterprise, skills, and employment roles, which include workforce and skills
development, employment creation, and support of small and medium scale businesses;
D. Promotional roles, like foreign investment promotions and project management; and;
E. Capacity building roles which include providing technical assistance to other local
development organizations and informing them of good practices and models.
7. International Organization

 Institutions established by three or more states as voluntary members, formed through a

formal agreement or treaty, in order to promote cooperation and coordination among
them. Members of an international organization work together for the development and
management of their common interests.
 Membership is entirely composed of national states or governments
 These member states give power to the international organization which gives the
institution some degree of authority to manage and govern the same member states.
 International organizations tend to focus on different agendas. The decision of what
agendas to pursue by an organization exclusively depends on the interests of its
members
 Some agendas may be economic (e.g. finance and investments), humanitarian (e.g.
human welfare, human rights), or environmental (e.g. global warming, climate change,
biodiversity) in nature.
 International organizations provide an avenue for different countries and states to
connect. This connection among countries help form international laws, norms, and
ideas, which in turn strengthen the relationship among member states. These norms
also serve as guides on how to regulate and manage these member states.