CASE Study

A STRATEGIC AUDIT OF BAGUIO-BENGUET COMMUNITY CREDIT COOPERATIVE

JERAH MAY D. BANIQUED

CHERRYLYN S. ABELLERA

CASE STUDY

BACHELOR OF SCIENCE IN BUSINESS ADMINISTRATION

MAJOR IN MARKETING MANAGEMENT

COLLEGE OF BUSINESS AND ECONOMICS

NUEVA VIZCAYA STATE UNIVERSITY

Bayombong, Nueva Vizcaya

General Environment

The general environment consists of the economic, technological, sociocultural,

and political and legal trends that influence a business. By looking into each of these

areas, a business managers are able to identify possible opportunities and threats that can

influence the performance of the business.

Political Factors

Privatization. The passing of government obligations to corporations and other private

entities, has become a policy thrust of the Philippine government upon the dictates of the

International Monetary Fund and World Bank. Nationwide, the trend of outright

transformation or sale of government agencies, government-owned and -controlled

corporations (GOCC’s), public hospitals and schools, state colleges and universities, and

public utilities, has prevailed over the people’s clamor for sufficient and accessible social

services. This scheme extends to the Cordillera region, especially in Metro Baguio as it

serves as the region’s political, economic, and cultural center. Here, around 16

government agencies and GOCC’s are burdened by the policy of privatization. These are

the National Power Corporation, Social Security System, Government Service Insurance

System, PAG-IBIG, National Food Authority, National Housing Authority, Housing and

Urban Development Council, Housing Investment and Guarantee Corporation, Housing

and Land Use Regulatory Board, Department of Social Welfare and Development,

PhilHealth, Philpost, National Irrigation Administration, Baguio Water District and La

Trinidad Water District. Handing over the work of basic social services to private entities

means converting these services into profit-oriented enterprises. In light of the dreaded

multisectoral impacts of privatization, Tongtongan Ti Umili-Cordillera Peoples Alliance

together with supportive groups and allies successfully launched the Solidarity to Oppose

Privatization!, Metro-Baguio (STOP!-MB) on September 1, 2001.

Privatization of health services. The two major public hospitals in Metro Baguio are now

being subjected to privatization. The different departments of Baguio General Hospital

are being privatized piecemeal. Its dialysis center is said to be controlled by a US firm.

BGH has also two newly constructed buildings for pay wards. Following the trend to

privatize the health sector, the Benguet Provincial Board has declared Benguet General

Hospital (BeGH) as an “economic enterprise” in early 2004 through Ordinance No. 4-88.

A Board of Directors has been formed with broad decision-making powers, including the

power to ratify earlier agreements with the provincial board, such as the 60-40 percent

ratio of the hospital’s 200-bed capacity for charity and pay wards respectively. As an

“economic enterprise”, BeGH would still receive an annual subsidy of P40 million from

the provincial government, but this subsidy may cease once the hospital becomes

financially viable through the collection of additional fees from indigent patients. In May

2004, affected BeGH employees passed a counter-proposal, pressuring the Provincial

Board to recall the ordinance. The employees’ protest raised 16 concerns, ranging from

continuous appropriation to the composition of an oversight committee to ensure the

smooth implementation of the ordinance. Before this latest attempt to corporatize, BeGH

already turned over its dialysis and physical therapy department to private firms.

Continuing the privatization trend, the Baguio Health Department also increased its fees

on services and laboratory fees.

Privatization of the educational system. The government’s meager budget for state

universities and public schools means a yearly slice of subsidies, pushing these public

institutions to further privatize. As a result, student youth from all over Northern Luzon

and even some Central Luzon provinces who go to study in Metro Baguio have to endure

unending increases in tuition and other fees, and the general worsening of the educational

system.

For several months now, students of the University of the Philippines (UP) System

including UP Baguio students have voiced their strong opposition to Senate Bill 2587

(formerly House Bill 455), which is designed to privatize the UP system, leading to

higher tuition fees. Section 10 of SB 2587 states that the Board of Regents, the highest

policy-making body of the University, will be vested with corporate powers, indicating

the openness to engage in business and other profit-making schemes to generate funds for

the university’s operations.

The small budget for public education affects all public elementary and high schools in

the city. In Baguio City National High School (BCNHS) alone, as per 2003 data, there

were only 365 teachers serving a large student population of nearly 12,000. At the Pines

City National High School (PCNHS), 7,000 students on the first day of classes had to be

serviced by only 174 teachers. In both schools, the average class size ranges from 70 to

80 students per class. There are worse cases of high student-teacher ratios in the city,

with the highest recorded figure so far reaching 92 students per teacher at the BCNHS

Fort Del Pilar Annex during school year 2002-2003.

Privatization of market, comfort rooms and roads. The Baguio City local government’s

blind drive to privatize its market, roads, even public toilets, underscored the intense

mayhem inflicted by favored corporate interests against the general public welfare. The

pay parking scheme on city roads, which is privately operated by and mainly benefits

Jadewell Systems, is proving itself a fiasco with its continuous violations of Land

Transportation Office’s supposed mandate, police traffic management, and city council

ordinances, aggravated by its arrogant posturing. Designating sections of city roads as

pay parking areas worsened traffic congestion. The Jadewell scheme has displaced public

utility jeep and taxi drivers, local motorists and commuters. In addition, Jadewell has

failed to remit to the City Treasurer’s Office the full revenue share of the city from its

pay-parking operations. Holding of picket/protest in front of Baguio City Hall to

influence city officials for the rescission of the Memorandum of Agreement (MOA)

between Baguio City and the Jadewell Parking System’s Corporation which paved for the

privatization of major streets in Baguio City.

Privatization of public utilities. The imposition of the onerous PPA scheme (Power

Purchased Adjustment, now being concealed through the so-called “unbundled rates”) on

consumers and the privatization of National Power Corporation (NPC) have resulted in

unjust power rates that go far beyond the consumers’ actual use of electricity. In Benguet

province, the Benguet Electric Cooperative (BENECO) is still bound to collect the PPA.

These high rates are expected to increase again with the conversion of BENECO from a

non-stock, non-profit cooperative to a stock cooperative.

A forum against the Power Purchased Agreement (PPA), an agreement between the

National Power Corporation and Independent Power Producers which had led to the

uncontrollable increases of electric/power rates. Furthermore, water rates in Baguio

continue to increase, driven by the Baguio Water District’s need to pay its P796.75

million loan incurred for the Baguio Water System’s Rehabilitation and Expansion

Project. Attempts to pass on the loan burden to water consumers would escalate again

with the P3-billion Bulk Water Supply Project. Aside from this, the Bulk Water Supply

Project threatens to privatize public water sources, which could be a prelude to more

extensive water privatization and the dependency to water rationing of the entire BLIST

area. (Read related article: Water war?)

Privatization’s impact on government employees. Mergers and abolitions of government

agencies inevitably lead to the reduction of positions in the civil service. Thus, more than

2,000 government employees in the Cordillera – most of whom are in Metro Baguio – are

faced with retrenchment and contractualization. In Baguio City alone, 87 waste

management workers, threatened with displacement, petitioned the city council to

reconsider its proposed privatization of garbage collection, hauling and disposal. The

reorganization of four City Hall departments (General Services Office, Public Utilities

and Services, City Engineering Office, Office of City Architect and Parks’

Superintendent) is threatening 349 more city employees.

Economic Factors

Labor sector in the midst of economic bankruptcy. National Statistics Office (NSO)

figures admit that the country’s unemployment rose from 3.42 million in 2002 to 3.6

million in 2003. Unemployment rates also increased in the Cordillera provinces.

Compared to other provinces, Baguio City has the highest unemployment rate of 17.2%

in a total labor force of 199,000. (Refer to table.)

Table 1. EMPLOYMENT AND UNDEREMPLOYMENT RATES AS OF

JANUARY 2004 CAR

Source: National Statistics Office

Province Labor force (LF)

LF participation

Employment Unemployment Under-employment

Abra 142,000 65.8% 91.8% 8.2% 6.1%Baguio-Benguet

Baguio only

Benguet

429,000

199,000

230,000

62.3%

54.6%

69.0%

86.6%

82.8%

89.0%

13.4%

17.2%

10.7%

4.3%

4.4%

4.6%

Ifugao 106,000 80.1% 90.8% 9.2% 13.6%Kalinga 109,000 73.5% 89.5% 10.5% 2.1%Mtn. Province

91,000 89.4% 95.4% 4.6% 2.8%

Apayao 61,000 75.3% 96.7% 3.3% 21.0%TOTAL 939,000        

Unemployment, retrenchment, low wages and poor working conditions haunt urban

workers and their families. While the living wage in the Cordillera region is defined at

P537 daily, the actual wage rates for a regular industrial worker is stuck at P190 daily.

Other workers in the service, handicrafts and agricultural sectors receive as low as P174

daily. Piece-rate and job-out workers at the Baguio City Economic Zone (BCEZ) endure

extremely low pay.

Also, the increasing number of unpaid family workers and self-employed workers

implies the short-term, transient, or seasonal nature of available employment, as shown in

the table below.

Table 2. EMPLOYED PERSONS BY CLASS OF WORKER FROM PRIMARY

OCCUPATION

CAR, July 2003

Source: NSO

CLASS OF WORKER NO. OF WORKERS

WAGE AND SALARY (worked for private household/establishment/family operated activity)

13,850

WAGE AND SALARY(worked for government/government corporation) 

2,364

OWN ACCOUNT(self-employed) 

9, 418

OWN ACCOUNT(employer) 

1,597

UNPAID FAMILY WORKER 3,222NOT REPORTED -----TOTAL 30,415

Massive retrenchments hit Philex Mines and John Hay Development Corporation

last year. Citing the economic crisis, the management of these two firms justified the

layoffs on grounds of “losses” despite their continued reaping of profit. In the case of

Philex, for instance, the company was able to hire contractual workers and purchase new

equipment after the retrenchment. A total of 962 workers in Baguio and 425 workers in

Benguet were displaced last year, while the first two months of 2004 also witnessed

termination and retrenchment cases of workers in Baguio and Benguet.

Table 3. NUMBER OF DISPLACED WORKERS BY YEAR PER PROVINCE

Source: Department of Labor and Employment-CAR

YEAR BAGUIO BENGUET MT.PROV ABRA2000 189 656    2001 1300 422 10  2002 76 136    2003 962 425   492004 (Jan-Feb) 36 56    TOTAL 2,563 1,695 10 49

In the Baguio City Economic Zone (BCEZ), applicants are victimized by gender

discrimination and the preference for single or unwed women workers. To this aim, the

EPZA management scrutinizes applicants through expensive and prolonged screening. It

continues the practice of maintaining the casual or probationary status of workers for

several years, while the workers are severely overworked and exploited by the burden of

meeting their quotas. Lastly, workers of Texas Instruments within the BCEZ need special

attention due to their exposure to dangerous chemicals that could lead to cancer and other

serious illnesses. Their working conditions need immediate investigation, considering

that a number of recorded cases of deaths are traceable to such occupational hazards.

Sociocultural Factors

Ilocano is the predominant dialect in the city. The national language, Filipino, is

of course spoken by almost everyone. English is widely spoken and understood. It is the

medium of instruction in all public and private schools. Most newspaper and magazines

are printed in this language and the English-speaking traveler would not encounter any

communication problems. Religiosity is a basic socio-cultural characteristic that makes

the Filipino character distinct and unique as manifested likewise by Baguio residents.

Over the years, the number of religious sects in the City has been increasing. The three

most dominant are Roman Catholics to which 80.4 percent of the population belong,

followed by the Episcopalian Church with 5.8 percent and the Iglesia ni Cristo with 3.5

percent membership. The remaining 10.3 percent distributed among other religious sects.

Technological Factors

Technological advancements, government spending on technological research, the

life cycle of current technology, the role of the Internet and how any changes to it may

play out, and the impact of potential information technology changes.

Environmental Factors

The City’s main attraction is still its natural bounties of cool climate, panoramic

vistas, its pine forests and generally clean environs. Today, it still boasts of 5 forest

reserves with a total area of 434.77 hectares. Three of these areas are watersheds that

serve as sources of the City’s water supply. Of the City’s total land area, only 467.5

hectares (8.1 percent) still have old growths of pine while 1,137.5 hectares (19.8 percent)

have production pine stands and 122.5 hectares (2.1 hectares) are brush lands. The

remaining area of 4,021.1905 hectares making up 70.0 percent of the total comprises the

developed portion.

There are five major creeks/waterways that serve as a natural drains leading to the

lowlands. These continue to serve as sources for irrigation of cultural lands along its

banks. There are also nine major springs that continue to supply water in various areas of

the city, mostly those that have not been reached by or cannot be served by the water

system. The overall water consumption expanded by 3.05 percent over the previous year,

contributing to the increase is the presence of metered deep wells (private wells) wherein

volume of production is being paid to Baguio Water District. Continuing efforts to

conserve the environment through public and private sector partnerships are being

embarked upon. The City has initiated and persistently implemented its solid and liquid

waste management program. The Baguio Sewage Treatment Plant, the only one of its

kind in the country, now operates at percent of its rated capacity. The city is currently

implementing a citywide installation of secondary bilateral inlet pipes to enable majority

of the city to gain access to the services of the treatment plant.

Solid Waste Management now covers 98percent of the total 128 barangays. Most of the

City’s total households or 99 percent are served regularly. The average solid waste

density per kilograms per cubic meter is 300. The volume of waste collected decreased

by 0.31 percent. This is attributed to the proliferation of ambulant scavengers who roam

around the City pulling out recyclable materials from piles of solid wastes before the

regular collection. The facility is now operating at 103.97 percent rated capacity more

than last year’s level of 93.32 percent. Its performance continue to improve with 90.04

and 91.11 percent reduction rate of biochemical oxygen demand and chemical oxygen

demand compared to the allowable standard of 85 percent.

The average Total Suspended Particulates (TSP) in micro gram per normal cubic meter is

200 in 2003 and 198 in 2004, taking into account the air quality of the surrounding areas

of the Central Business Areas which are still within the fair to good condition since

Baguio City has a good to fair air quality. The Ambient Air Quality (AAQ) Standard is

pegged at 230 TSP.

Legal Factors

Republic Act No. 9520. “AN ACT AMENDING THE COOPERATIVE CODE

OF THE PHILIPPINES TO BE KNOWN AS THE "PHILIPPINE COOPERATIVE

CODE OF 2008”. "ART. 3. General Concepts. - A cooperative is an autonomous and

duly registered association of persons, with a common bond of interest, who have

voluntarily joined together to achieve their social, economic, and cultural needs and

aspirations by making equitable contributions to the capital required, patronizing their

products and services and accepting a fair share of the risks and benefits of the

undertaking in accordance with universally accepted cooperative principles.

Competitive Environment

Threat of New Entrants. As Baguio City and Benguet continue to grow. It is expected

that more banks, more lending services, more lodging/function hall services and other

financial institutions will open in the city, BBCCC considers the impact of this force as

high therefore new entrants-new competition-new challenges.

Threat of Substitutes of Product/Services. BBCCC as a primary cooperative, a shining

hope for Baguio and Benguet, offering services and extending loans of different purposes

and located at the heart of Baguio where several lending companies and different

financial institutions, and other informal money lenders who all offer different services

and credit facilities is great threat of Substitution.

Bargaining Power of Buyers. The member has a minimal choice in availing the services

because the cooperative strictly implements its policies and procedures, hence, the

bargaining power of buyers low.

Bargaining Power of Suppliers. Due to other linkages and the credible reputation that

was built along the years, many suppliers and different providers offer better prices to the

cooperative. Therefore, BBCCC truly proves that they are the leading in terms of market

share in the City that makes the bargaining power of suppliers low.

Rivalry among Competing Firms. The rivalry among competing firms in Baguio City is

high because the competitor also offers the same services as the cooperative does.

Historical Background

The BBCCC was organized as the BAGUIO TEACHERS’ CREDIT UNION in

1958. Fifteen teachers from what was then Saint Louis College (now Saint Louis

University) in the City of Baguio pooled whatever savings they had and registered the

BTCU under the provisions of the pre-war Commonwealth Act 565 (The Cooperative

Law) and Republic Act 2023 (The Philippine Non-Agricultural Cooperative Act) which

were passed only a year earlier. Their aggregate capital amounted to only PhP 150.00 and

they ran a desk in the house of their principal organizer, Atty. Alexander Brillantes, for

their transactions. But they had such verve that in three years, they expand their

membership to include other teachers in the city. They adopted a new name, the

BAGUIO COMMUNITY CREDIT UNION. Circumstances were harsh, however, and

they kept moving their office. From the Brillantes residence, they relocated to Upper

Padre Burgos and promptly returned to the Brillanteses when that place was buried by a

landslide.

In 1972, when Philippine dictator Ferdinand Edralin Marcos declared Martial

Law, BCCU’s members were 512 strong. In fourteen years they had raised their

aggregate share capital to PhP 121,418, an astounding average annual increase of 2,884%

over the period at the end of which, they reported a gross income of PhP 9,612.00 and a

net surplus of PhP 2,906.00. Modest perhaps, but they were also able to build up their

total assets to PhP 158,290.00. Still looking for permanent ground on which to found a

home, they transacted on Holy Ground, sinking their stakes at Sangkabalayan Building at

the Baguio Cathedral grounds in 1976. That year, they renamed the Cooperative the

BAGUIO-BENGUET COMMUNITY CREDIT COOPERATIVE, INC. (a.k.a. The

KILUSANG BAYANG PAMPANANALAPI NG BAGUIO-BENGUET) and registered

it with the Bureau of Cooperatives Development, organized by virtue of Presidential

Decree No. 175. They moved their offices again in 1977 to a small building within the

Church of the Resurrection compound along Magsaysay Road.

In 1978, at twenty years of age (and counting!), BBCCCI moved back to the

Brillantes compound. Its membership had dwindled to 373 but it still managed to push

aggregate share capital up to PhP187,049.00. Reported at PhP 20,810 at the end of that

year, the cooperative’s gross income was increasing at an average annual rate of 19.42%

over the last six years. Net surplus jumped to PhP 8,558.00 over the same period,

indicating an average annual growth of 32.42%. BBCCCI’s total assets then registered

PhP 202,472.00. That year, the first thorough systems analysis was made and a 5-year

Development Program implemented. In the following year, membership expanded to 494

cooperators and things began to look bright. Finally by the end of the decade, the

BBCCCI could boast of a mean share capital of PhP 563.00 per member, higher than the

Philippine cooperatives’ average of PhP 537.00/cooperator; it was granting loans at an

average of PhP 353.00/member-borrower compared to the Philippine mean of PhP

91.00/member-borrower; and it was earning PhP 22.00/member compared to the national

mean of PhP 4.00/cooperator.

In 1983, on its 25th year of existence, BBCCCI had 722 members from all over

Baguio and the province of Benguet. It broke new ground once again, breaching the One-

Million Peso mark in aggregate share capital the previous year. This year, its fixed

deposits registered PhP 1,763,752.00. The BBCCC’s total assets in 1983 amounted to

PhP 2,059,408.00, having broken also the One-Million Peso mark the previous year. The

cooperative’s Silver Jubilee celebrated these achievements with a simple theme: 25 Years

of Commitment to Progress Through Service. It was, to say the very least, an

understatement. In the last five years, BBCCC had increased its gross earnings by an

average of over 200% annually, reaching PhP 229,570.00 at the end of the period. The

Cooperative had also achieved an annual 230% rate of increase in net surplus over the

same term, realizing a net surplus of PhP 106,643.00 in 1983. In this very same year, the

BBCCCI moved into its new home at the newly renovated former garage of the Saint

Louis University Guest House.

In 1988, thirty years into its existence, the BBCCCI greeted a new dawn; a tyrant

had fled two years earlier and Philippine democracy was a-birthing, a new Constitution

written and the Congress restored. Members had tripled since 1983 and now numbered

2,314 with aggregate fixed deposits of PhP 12,246,767.00. With assets now at PhP

15,959,138.00 the Cooperative finally moved into a home of its own, purchasing the

newly renovated Estepa apartments. This led to a new surge of confidence and by the end

of the year, BBCCCI was reporting another milestone: breaking the One-Million Peso

mark, this time in gross earnings (PhP 1,670,278.00) and in net surplus (PhP

1,048,846.00). All these mean that in the past five years, capital build-up had been

registering at an average rate of 118% per year; assets were growing at an average rate of

135% per year; gross income at an annual mean rate of 125%; and net surplus at an

astounding average rate of 177% per year. There had been another reason to celebrate:

three years earlier, in 1985, BBCCCI had been selected by the Bureau of Cooperatives

Development as the MOST OUTSTANDING COOPERATIVE in the entire country.

In 1998, Joseph Ejercito Estrada was voted into the Philippine Presidency with

the largest winning margin in the country’s history. The BBCCC (the “Incorporated” had

been dropped in 1991 by its registration with the newly established Cooperatives

Development Authority as per Republic Act 6939 or the New Cooperative Code) faced

the turn of the millennium with tremendous confidence brought about by its

achievements as a “millionaire cooperative.” In 1991, it had succeeded in having the City

Government of Baguio name the thoroughfare leading to its site, “Cooperative Street,”

the first of a few so named in the country. 1998 would see the Cooperative 9,489

members strong, with total fixed deposits of over PhP 149.86 million. BBCCC’s assets

then stood at nearly PhP 206.46 million with negotiations well under way for the

construction of its own high-rise building. Its gross income registered slightly over PhP

30.33 million by the end of the year with a net surplus of over PhP 21.76 million.

In compliance with its mandate under R.A 6939, the Cooperative established the

BBCCC Foundation, Inc. as its social arm. The Foundation was registered with the

Securities and Exchange Commission on August 13, 2002. It has since put up a Pre-

school Program and, through a Memorandum of Agreement with the City of Baguio, has

committed to provide quarterly grocery coupons to street urban working children

(SUWC) in coordination with the City Social Welfare and Development Office. Its

scholarship program assists needy but deserving students of Baguio and Benguet public

schools through monthly and annual book allowances. The Foundation also conducts

regular outreach medical and dental services and participates actively in the Clean and

Green Program of the City, having enlisted in the “Adopt a Park” Project of the local

government.

The BBCCC then took stock of itself in 2008. At fifty years of age, where stood

the Baguio-Benguet Community Credit Cooperative? With 16,387 regular members and

total assets of almost PhP 952.10 million, the BBCCC was poised to receive one of the

most outstanding awards yet—the “Baguio Builder Award” given to the city’s most

enduring and significant contributors to the City’s development on its Centennial Year.

The new eight-floor BBCCC building, a postmodern edifice of emerald glass and

brownstone had been inaugurated three years earlier. On its fiftieth year, the Coop—as it

was fondly called—had PhP 636,577,854.00 in total share capital with gross earnings of

over PhP 101.68 million. By year end, it reported a net surplus of over PhP 58.73 million.

The journey, though rife with pitfalls, had been fruitful. Yet where did it stand go now?

The cooperative had approached a fork in the road, one tine (increasingly taken by a

growing number of institutions) leading to the corporate cooperative and the other

(increasingly desolate and forlorn) to a re-invigoration of the true cooperative philosophy.

QUO VADIS, BBCCC?

The move into the second decade of the 21st century had the Cooperative poised

at the cusp of a fresh offensive against the perennial social problems challenging the

country and the globe: poverty, ignorance, and political apathy. But the BBCCC is also

uniquely positioned in this regard:

By itself, fifty three (53) years later, as a Billionaire Cooperative, it had the capability to

project itself as a beacon of financial stability to all self-help financial organizations and

as a living and vibrant argument against the predominant principle of profit maximization

as the heart and soul of financial activity. Social activism, not profit, drives the strong

Cooperative.

And so the BBCCC counts more as assets the cooperator than the properties; the member

more than the currencies, and the community rather than the deposits, all of whom the

Cooperative co-exists in symbiosis. Man is a social, more than a financial, being. This

basic principle had served as an unshakeable foundation of the Cooperative’s faith amidst

the turmoil of the worldwide financial crisis. Markets based on faith in the stability of

currencies will crash; those based on faith in the resilience of people-in-communities

remain solid as a rock.

As for the struggle against ignorance, BBCCC looks forward to the realization of the full

potential of its social arm—the BBCCC Foundation. With the drafting of a medium-term

strategic plan and a long term development map, the Coop is finally moving for the

activation of its own Institute for Cooperative Training and Education which is expected

to help promote institutional development among brother and sister Cooperatives, not

only in the Cordillera Administrative Region but also in the rest of Northern Luzon. The

Foundation intends, not to compete, but to lend its intellectual muscle to the expansion of

the Cooperative spirit and movement by sponsoring and organizing seminars, workshops,

and forums addressing the various needs and challenges of cooperators wherever and

whenever its help may be called.

And with regard to political apathy, BBCCC also looks forward to the revitalization of

the national cooperative movement as an active force in national governance as it

promotes the increase of the number of cooperative sectoral deputies in the Philippine

House of Representatives. However, more than a simple move of political involvement,

BBCCC’s participation in the electoral exercise is itself an act of advocacy—the

promotion of Cooperativism not only in the financial or economic area but in the very

soul of nationhood—the area of governance. For what is cooperativism but the very

essence of the Democratic Project? And what is a Cooperative but the complete

manifestation of a government of the people, by the people, and for the people, as they

manage their own resources, conscious of the growing needs both of themselves and of

their children, mindful always of the sustainability of their Project, because it is their

present as well as their future? Ah, but the BBCCC knows this well. This is its secret that

is no secret. Faith in ourselves and faith in our own people. And as the cooperative looks

forward to the next fifty years, through a fine mist that freshens the brow much as it

seems to obscure the road beyond, the BBCCC cooperators are strengthened by the

memories of their predecessors, a past that they carry deep within themselves and, thus, is

very much a part of their present, a Faith-sustaining past; a past that enriches and

delineates much more clearly the outlines of their future, and makes it more meaningful,

even through the mist—that thickens now but for their resoluteness—as they march on, a

smile on their lips as they murmur, proudly, “We remember!”

Currently, BBCCC is affiliated with various local, national and Asian cooperative

entities. It is a supporting member of the Asian Confederation of Credit unions (ACCU)

based in Bangkok, Thailand; a member of the Philippine Federation of Credit

Cooperatives (PFCCO) and its secondary, the Northwestern Luzon League of

Cooperatives (NORWESLU), the Philippine Cooperative Center (PCC), and the Regional

Cooperative Development Council of the Cordillera Administrative Region (RCDC-

CAR), to name a few.

The BBCCC is also a recipient of innumerable awards. It is a Hall of Fame

Awardee in various cooperative groups and has been awarded the Trailblazer Award, The

Biggest Cooperative Award, Most Prolific Cooperative Award, and Most Outstanding

Cooperative of the Philippines on several occasions. In 2005, the Coop was awarded

“Outstanding Organization in the Social and Business Sector” by the City Government

which also recognized the Coop’s slogan, “Things can happen through the Cooperative

Way,” as best slogan for the City’s 96th Charter Day.

Indeed, the Baguio-Benguet Community Credit Cooperative (BBCCC) has come

a long way. Flitting back through the years on the wing of memory, we touch ground at

certain milestones, measured not only by the quantitative growth of our community and

our assets but by the wealth of our sociality; not only by the number of loans we have

extended but by the quality of life those loans have enriched; and not only by the

proliferation of the services we extend to our regular as well as associate members but by

the richness of the relationships these extensions have fostered. Yet the most visible

signposts along this journey would be the measurable indicators of our growth:

membership, assets, aggregate capitalization, etc. In our rational and rationalizing

society, for better or for worse, these are the gauges of the quality of the journey, not the

bumps on the road or the potholes along the way, nor the vicious turns that are sometimes

unexpected or the storms that were stubbornly weathered. But these we did meet along

the way as we did the butterflies, the sun, and the fair wind. It was an altogether

fascinating journey all things considered, as we shall see in reminiscing.

The officers and members are unanimous in saying! “We have not only survived,

we are determined more than ever to protect our BBCCC at all costs.”

Such is the story of SACRIFICE, SURVIVAL, and SUCCESS of the Baguio-Benguet

Community Credit Cooperative.

Organizational Management

Vision

The BFi envision to be widely known to render excellent services to the BBCCC

members, supplementing only what BBCCC itself renders, such as but not limited to, pre-

school and cooperative education, assistance to victims of calamities and extreme

poverty.

Mission

Their mission is based on the articles of incorporation to serve as a channel of

BBCCC assistance to members, in terms of goods and services. Creating opportunities

for the improvement of the life of the less fortunate BBCCC members. Networking with

individuals and institutes to obtain assistance in whatever form or kind for the poverty-

deviation programs and activities of BBCCC.

The core values are the following:

Patience- BBCCC believes that patience is a basic character of all its members,

every member who saves defers present expenses while waiting for their savings

to increase in value;

Active Participation- the cooperative believes that the members are actively and

intelligently use loan facilities of the Cooperative for the benefit of the member

and pave way to the growth of the cooperative;

Responsibility- BBCCC follows rules and regulations,. This ensures order and

rational approach to the further improvement of what needs to be dealt with the

cooperative

Advocacy- BBCCC is an advocate; an active member of the society who spreads

its values beyond the four corners of the cooperative;

Dependability- BBCCC is a means of taking positive action in relevant

situations;

Integrity- BBCCC adheres a high ethical standard of behavior;

Generosity- BBCCC share whatever resources it has. It also lends assistance to its

patrons, people, planet and personnel;

Moral Uprightness- Members, officers and staff are careful to follow acceptable

rules of behavior and behave in a moral way;

Self-discipline- the BBCCC staff and officers are conscious of their

responsibilities both as cooperators and servants of the members and maintain

self-discipline at all time in adhering to and upholding the basic

Objectives

Moreover, the BFi has its general objective to carry out the corporate social

responsibility and cultural advancement/humanitarian functions of Baguio-Benguet

Community Credit Cooperative (BBCCC).

They have also the following 2013 objectives:

1. To sustain and expand the following existing projects such as BFi Pre-school,

Scholarship Program, BFI-DSWD Street Children Assistance Project and BFi

Institute of cooperative Skills and Development;

2. To Continue with the organization process and activities of BBCCC community

senior citizen members and BBCCC community members who are person with

disabilities;

3. To institutionalize BBCCC assistance arm to alleviate other members of the

community in extreme need of care, to include among others: sick, victims of

calamities, poorest of the poor , and be like; and

4. To increase financial resources hence beneficiaries of BFi through networks and

fund raising activities.

Their core values includes Patience Active Participation, Responsibility,

Advocacy, Dependability, Integrity, Generosity, Moral uprightness and Self-

discipline, Honesty, Innovation, Fairness and Trustworthiness.

The BFi have culture of being a people oriented and family oriented organization

they carry out the corporate social responsibility and cultural advancement which

focused to the people of Baguio and Benguet. BFi promotes the humanitarian

functions of Baguio-Benguet Community Credit Cooperative as an exchange of

warm acceptance of the community.

They practice family centered and applied it in the operations which in

turn helps them to achieve their wills to support people who lack care and

assistance. They always put a simple but remarkably “smile” on every

communication process as a sign of friendship and as a pleasing way to interact

with people around them, creativity, volunteerism, cooperation and selflessness

arise in them.

In addition, they are God-centered because they put God first in

everything they o to serve the people, these kind of attitude help them to achieve

their will to adhere, attend and serve the needs of Baguio and Benguet

community.

The BFi have strategies in their operation such as:

Baseline Surveys and Needs Assessments. It helps to identify and

prioritize needs for appropriate projects and activities, accomplish social

responsibility funcyions of BBCCC as mother cooperative organization.

Fund Development Program. Helps in generating fund for the

continuous operation of the BFi and not merely depending on the amount given to

them by their cooperative.

Customer Relationship and Service Management. The BFi provides

better assistance and care, to improve and gain quality of life. Through this, they

have published a good relationship with every customer they encounter.

Community Formation. It provides them better coordination of activities.

Membership Development. BBCCC Foundation is continuously

recruiting foundation-knowledgeable and Foundation-service oriented members

from various fields of endeavor to help them provide opportunities on the

improvement of life and development of people who need assistance and care,

In addition, the BFi has their Policy Guidelines Regulating the BBCCC

Foundation’s programs and projects.

1. The Foundation undertakes to come up with more stringent methods of recording

and bookkeeping;

2. The Foundation provides the BBCCC Board of Directors and Management copies

of its up-to-date records particularly on its activities and projects on a regular

basis;

3. Each project of the foundation is meant to be funded by the BBCCC and be

supported by appropriate Project Proposal detailing therein its purposes, activities,

and detailed budget;

4. Each Project proposal of the BBCCC Foundation funded by the BBCCC be

submitted to the BBCCC Board of Directors for approval, with such approval

contained in a Board Resolution to that effect; and

5. The cost of each Project approves by the Board through a Resolution be advanced

by the BBCCC to the Foundation provided that such advances be properly

liquidated after the conclusion of ach project and copies of the financial and non-

financial reports of the projects be provided the BBCCC Board of Directors and

the BBCCC management of the purposes of the financial and social audit

mandated by R.A 9520.

The BFi operates at the old buildings of BBCCC, the Brilliantes Compound back

of BBCCC from Monday to Saturday from 8 AM to 5PM except national

holidays and is continuously recruiting members.

Human Resource Management