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ASSOCIATION
02 HISTORY OF ASSOCIATION
 Associations find their roots in organizations such as the church,
medieval craft guilds and merchant trading groups

 Most of the early associations were local, but with the onset of the
American Civil War, many regional and national organizations were
formed to take advantage of the country’s industrial capabilities.

 Railroads led to expansion and new markets for manufacturers,

which, in turn, resulted in the formation of more trade associations to
ensure fair competition.

 By 1900, more than 100 associations had been organized to influence

federal and state legislation, to obtain industry information and to
benefit from standardized insurance rates.
02 HISTORY OF ASSOCIATION
 Both World War I and World War II had a profound impact on the
number of trade associations. They served as a valuable link between
the companies and industries they represented and the various levels
of government, and they played a major role in the war effort by
encouraging conservation and providing technical specialists to the
public service.

 Trade associations continued to maintain their essential role as

intermediaries with the government even after peace was declared
and the economy stabilized.
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WHAT IS ASSOCIATION?

 As per R.M Maclver, “an organisation deliberately formed for the collective
pursuit of some interest or a set of interests, which its members share”.

 According to Morris Ginsberg, an association is “a group of social beings

related to one another by the fact that they possess or have instituted in
common an organisation with a view to securing a specific end or specific
ends”.

 An association is “a group organised for the pursuit of an interest or group of

interest in common”
 MAIN CHARACTERISTICS OF
ASSOCIATION?
 Association-a Human Group: By the term group here means collection of
social being who share distinctive social relationships with one another. As
group which refers to reciprocity between its members. Therefore, here
association as a group expressly organized around a particular interest.

 Common Interests: It is not just collection of individuals but association

as a distinct social group in terms of interest aspect of association. Because
the association is organized for particular purposes, for the pursuit of
specific interests, we belong to it by virtue of these interests.

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 MAIN CHARACTERISTICS OF
ASSOCIATION?
 Association as an organization: Association denotes some kind of
organization. An association is known essentially as an organized group.
The character of an organization gives stability and proper shape to an
association. The idea of association as an organization also determines the
way in which the status and roles are distributed among its members.

 Regulation of Relations: Every association has its own ways and means to
regulate the behaviour and relations of its members. Therefore, they frame
certain rules and regulations which may be in written or unwritten forms.

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 MAIN CHARACTERISTICS OF
ASSOCIATION?
 Co-operative Spirit: One of the characteristics of association is its co-
operative pursuit to fulfil its interests. This co-operative pursuit may be
spontaneous as offering a helping hand to a stranger. It may be casual or in
fact may be determined or guided by the customs of a community as in case
of farmers assisting their neighbours at harvest time.

 Membership is Voluntary: Membership in association is voluntary. It

depends on individual choice as per their interests. In fact individuals are at
liberty to join them. One can join athletic club for purposes of physical
recreation or sport, to a business for livelihood or profits, to a social club for
fellowship. Therefore, membership in an association has social limited
significance.
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 MAIN CHARACTERISTICS OF
ASSOCIATION?
 Associations as Agencies: Associations are means or agencies through
which their members realize their similar or share interests. Such social
organizations necessarily act, not merely through leaders but through
officials or representatives as agencies. In a way associations normally act
through agents who are responsible for and to the association. It also give a
distinctive character of association as a legal entity.

 Association has Corporate Character: Association by virtue of being a

social organization may own property or funds which are held collectively
and do not belong to individual members. It possesses rights and
obligations, powers and liabilities which the members can not exercise as
individuals. It is in this sense, corresponding to its peculiar method of
functioning that association has a corporate character.
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 MAIN CHARACTERISTICS OF
ASSOCIATION?
 Durability of Association: The nature of association may be permanent
or temporary. There are some more enduring and exist on a larger scale
like the state, family, religious organisations etc. However, some
associations are very temporary in nature.

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THREE TYPES OF
ASSOCIATION?
1) Professional Associations
• A professional association focuses on a specific industry. Professional
associations help their members by offering educational content and/or
professional development specific to that industry.
2) Social Associations
• Of the three types of associations, social associations make up the smallest
group. These organizations generally include clubs or fraternal organizations.

3) Trade Associations
• Unlike professional and social associations, trade associations consist of
organizations rather than individuals. Each organization within the
association is a primary member, with multiple “child accounts” for
individuals within the organization.
 Register the legal name of your association, if appropriate. Starting a
business doesn’t always require a trademark name. In fact, the act of
publicly beginning to use a business name is legally equivalent to
establishing your rights to that business name.

 Build a business plan. Make your plan brief and comprehensive, sharing
the purpose of your organization in the most direct way possible. Establish
long-term goals and outline them in your document.

 Determine the legal structure. Associations can be incorporated or

unincorporated. Incorporated associations follow a legal structure
determined by the local laws and are usually not-for-profit associations.
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 Consider your leadership structure. When you start the association, you
may not need a large leadership body. But think about the future and what
the ideal board or governing entity for your association would look like.

 Create and file bylaws. Make it clear how a person can become a member
and how the membership starts and ends. Decide if the association will have
the power to terminate a membership.

 Draft and adopt policies and procedures. How do you want your
association to function? Creating a procedure for an association’s operation
is the best way to make it run smoothly.

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 Establish membership requirements. Your membership requirements
should be clear, as should your membership approval process.

 File for tax exemption. One of the benefits of incorporating your

organization is becoming tax exempt.

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01

COOPERATIVE
 Cooperative societies were created long before the advent of the fair
trade movement to help workers improve their livelihoods and protect
their interests.
• Cooperatives are organizations of people who have the same needs.
• Most scholars recognize the business of the Rochdale pioneers of
England as the first coop. In 1844, this group of 28 men (weavers and
skilled workers in other trades) formed a cooperative society.
• The global rise of cooperatives is partially due to the work of the
International Co-operative Alliance (ICA). The ICA was formed in 1895
by E. V. Neale of Rochdale and Edward Owen Greening, a supporter of
worker cooperation, in order to “end the present deplorable warfare
between capital and labour and to organize industrial peace, based on
co-partnership of the worker and to promote the formation of central
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institutions for helping people to establish and maintain self-governing
workshops
 IN THE PHILPPINES
• Cooperatives have been seen for a long time as important economic
actors in the Philippines. They are well recognised in law; their
promotion by a State agency was written into the constitution in 1987,
and they have their own up to date Cooperative Code, amended in 2008.
They have been the ‘policy instrument of the government in promoting
social justice and economic development’ which means they that have
had favoured status in economic and social policy.

• ICA members represent over 9,432 cooperatives in the Philippines, with

a total number of memberships of 7,647,800, and a total number of
226,400 employees.

• Its member organisations are active in the several sectors, including

Credit, Banking, Transport, Agriculture, etc.
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WHAT IS COOPERATIVE?

 Cooperatives are people-centred enterprises owned, controlled and run by

their members to realise their common economic, social, and cultural needs
and aspirations.

 Cooperatives bring people together in a democratic and equal way. Whether

the members are the customers, employees, users or residents, cooperatives
are democratically managed by the 'one member, one vote' rule.

 As businesses driven by values, not just profit, cooperatives share

internationally agreed principles and act together to build a better world
through cooperation.
 HOW COOPERATIVES ARE
STRUCTURED
MEMBERSHIP
• New members’ admittance must be in accordance with the criteria
agreed upon during the entity’s formation. Usually, cooperatives are
organized according to a profession, business activity, or member
community. New members who join must share a common need with
other members.

• Each member is entitled to one equal vote during the annual general
meeting (AGM) or any special general meeting called to vote for
specific organizational changes or proposals.

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 HOW COOPERATIVES ARE
STRUCTURED
GOVERNING BYLAWS
Each cooperative is governed by its bylaws, which are rules of
engagement that specify the procedure of carrying out different functions
and activities.

Some of the rules the bylaws of a cooperative specify include:

• How to elect members to the board of directors.
• How and when to hold the AGM and other special meetings.
• How to compensate the officers and board of directors.
• When to dissolve the cooperative.

The cooperative’s bylaws bind all decisions made by the executive

officers and the board of directors. 05
 HOW COOPERATIVES ARE
STRUCTURED
BOARD OF DIRECTORS

• The board of directors serves as the decision-making organ of the

cooperative. Board members are voted into office for a specific term
by members.

• The cooperative’s bylaws govern the functions and powers of the

board of directors. The board should consist of an odd number of
members so there can be a clear majority when voting on closely-
contested decisions.

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