Reviewer:

Lesson 1:

Guilds were considered the direct

ancestors of cooperatives.
Eranoi — it is the association that was formed As early as 300 B.C., by the Greeks.
Peace Guild— formed a volunteer police force to combat crime and preserve life and property In Saxon Europe.
Social and Religious Guilds— were organized in England during the Middle Ages to meet through voluntary and
mutual help, the dire needs of the masses.
Merchant Guilds— these guilds’ objectives were to protect the members’ business interests, regulate trade and meet
the competition brought by the presence of “outsiders” and foreigners.
Trade and Craft Guilds— These guilds were established to supervise the conditions and standards of production;
foster social and religious activities etc.
Friendly Societies— were mutual-aid organization formed voluntarily by individuals to protect members against debts
incurred through illness, death, or old age.
Trade union, also called labour union, association of workers in a particular trade, industry or company created for
the purpose of securing improvements in pay, benefits, working conditions or social and political status through
collective bargaining.
Robert Owen— “Father of Cooperation” in Europe.
Rochdale Pioneers consisted of 28 poor unschooled weavers who established the first real consumers’ cooperative
store in Toadlane, Rochdale, Lancashire, England on December 21, 1844 and signaled the birth of modern
cooperation.

the Rochdale Principles:

■ Open membership.
■ Democratic control (one person, one vote).
■ Distribution of surplus in proportion to trade.
■ Payment of limited interest on capital.
■ Political and religious neutrality.
■ Cash trading (no credit extended).
■ Promotion of education.

Raiffeisen— “Father of Credit Cooperatives.”

Capitalism— industry are
controlled by private owners for profit, rather than by the state.
Fascism— a form of far-right, authoritarian
ultra-nationalism characterized by dictatorial.
Communism— political theory derived from Karl Marx, advocating class war and leading to a society in which all
property is publicly owned and each person works and is paid according to their abilities and needs.
Socialism— is a political and economic theory of social organization which advocates that the
means of production, distribution, and exchange should be owned or regulated by the community as a whole.
Open Membership— Membership in a cooperative is voluntary and is open to all who are engaged in the same field
of activity.
Domestic Control— The affairs of a cooperative are conducted on a democratic basis, with an elective board of
directors serving as the executive body.
One-Man-One-Vote— Regardless of the amount of capital shares that members have in
their cooperative, every member is entitled to only one vote.
Limited Interest to Capital— the capital for a cooperative is raised by purchase of shares
by members and from their earnings.
Service Limited to Members— though non-members may avail goods and services from a cooperative, only its
members are entitled to patronage refunds.
As an entity, a cooperative is generally neutral to political, religious or other controversial matters.
Education for Members. A cooperative must also endorse technical skills and business training for its members.

Expansion. Through a majority vote from the Board of Directors, a portion of the cooperative’s earnings or savings
may be kept by the association to increase its capital for the purpose of expanding its business operations.

Federation. Whenever possible, cooperative associations must cooperate with other cooperatives on a district,
regional or larger levels for purposes of publicity, education, improvement of techniques, education of common
problems, or expansion of business.
Answer this:

1. Who is the Father of Cooperation in Europe?

2. What two guilds made an important contribution to the ideals and practices of cooperative efforts.
3. The Unions still exist today in the form of the Chamber of Commerce.
4. Rochdale Pioneers introduce_______which made them significant in the history of cooperative?
5. What guilds protected the members’ business interests, regulated trade and met the competition
brought by the presence of “outsiders” and foreigners.
6. Who is considered the direct ancestors of cooperatives.
7. It is one of the most significant events in human history which described Britain’s economic
development from 1760 to 1840.
8. In early organizations replaced the guilds purposely to protect members against debts incurred
through illness, death, or old age.
9. This expresses the validity of existing situations and rationalizes certain behaviors, situations and
institutions.
10. Organizations pool their needs together to be able to purchase these needs on a wholesale basis
and later sell these to the members at cost.

Lesson 2:

1 & 2. What are the two important matters discussed in a cooperative’s general meeting?
3. What is the framework within which an organization that arranges its lines of authorities, communications and
allocates rights and duties?
4. What accomplishes a cooperative’s objectives with the use of men, materials and machines?
5. In cooperatives, who assumes part of management responsibility?
With cooperative organizations, supervision is
exercised internally and externally.

Management of cooperative association rests on three distinct groups: the members; the
directors; and the managerial staff