CODE OF CONDUCT AND ETHICAL STANDARDS

FOR MEMBERS, OFFICERS AND EMPLOYEES

We, the Board of Directors of Calamianes Seaweeds Marketing

Cooperative (CSMC), recognizing that our cooperative as an effective
instrument of equity, social justice and economic development and for
promoting self-reliance and harnessing people power, do hereby
promulgate and adopt this Code of Conduct and Ethical Standards for
our members, officers and employees.

RULE 1
TITLE AND OBJECTIVES

Section 1. This rule shall be known as Code of Ethical Standard for

Members, Officers and Employees of CSMC.

Section 2. For this purpose, the following objectives are hereby set;

a. enhance the quality of life of each member;

b. strive at all times to be self-sustaining and self-reliant
c. uphold democratic process
d. observe honesty and good faith
e. maintain high degree of morality and integrity
f. obey the laws of the duly constituted authority
g. high sense of decency and morality
h. service oriented
i. independent and service oriented
j. socially responsible to the community

RULE 11
GUIDING PRINCIPLES

Section 1. The Cooperative shall be guided by Cooperative Principles

provided under Article 4 of the Republic Act 6938:

1. open and voluntary membership

2. democratic control
3. limited interest on capital
4. division of net surplus
5. continuous cooperative education; and
6. cooperation among cooperatives

Section 2. In addition to the Principles enumerated above, the

following Principles are likewise adopted;

1. Interest and Welfare of Members. The cooperative must respect

the interest and promote the welfare of its members and employees by
formulating a Human Resource Development Program, and undertaking
a continuous education and training for all its members, officer and
employees.

2. General Assembly. The General Assembly shall mean the full

membership of the cooperative duly assembled for the purpose of
exercising all the rights and performing of all the obligations pertaining
to cooperatives. It shall be the highest policy making body and the final
arbiter of all the disputes in the cooperative, thus,
 a. Any business to be undertaken must be embodied in an
annual plan, program and budget that must be approved
by the General Assembly.

b. A policy of transparency must always be maintained

whereby books of accounts and minutes of Board of
Directors’ meetings are properly kept and made accessible
to members and audited financial statements are
religiously prepared and made known to the members
and other parties interested on the cooperative’s
operation as authorized by law or the Board of Directors.

3. Social Responsibility. Our cooperative being a people’s

organization has a heavy social responsibility that requires it to maintain
a human and nationalistic stand, discharge it’s functions and render
services in the most professional manner, exercise judiciousness and
sincerity to everyone, and be responsive to the needs not only of it’s
membership but also of the general public. Among others, it has:

a. to provide optimum supply of quality products such as

drugs and medicines as well as medical and surgical
supplies and services at reasonable price or interest; and

b. To be an active catalyst for change towards the total

development of man and a potent political force in the
community and in the country. Therefore, it does not
engage only in economic activities by also in advocacy for
reforms, policy reforms and local governance, thereby
becoming an active partner together with other NGOs in
seeing to it that progress is achieved and that benefits
redound to the general public. But in the conduct of all
these, it, must exercise political neutrality.

4. Cooperative as a Way of Life. Since cooperativism is a way of

life, the cooperative must:

a. Build a credible image and promote a better way of living.

b. embody the ideals if cooperativism and clearly manifest it
by showing cooperation with and support to other
cooperatives by:

i. avoiding direct competitions;

ii. fostering “big brother helps small brother spirit”
where well established cooperatives assist
smaller cooperatives grow by helping them
access opportunities, resources and technology;

c. Federate to promote solidarity and cooperation and

strengthen their capability as an organization and the
cooperative movement.

RULE 111
STANDARD FOR COOPERATIVE MEMBERS
Section 1. Members’ Conduct - At all times, a cooperative member
shall:

a. be respectful and observe proper decorum;

b. be receptive to criticism by developing and demonstrating
maturity
c. be actively involve in cooperative and community affairs’
d. refrain from:
i. giving and receiving gifts to obtain or in exchange of
favor;
ii. engaging in activities inimical to the interest of the
cooperative;
iii. using the cooperative for personal interest.

Section 2. Members’ Quality- The members must posses the

following qualities:

1. honesty
2. sincerity
3. generosity
4. obedience
5. trustworthiness
6. confidence
7. hard working
8. persistence
9. independence
10. creativeness

Section 3. Members’ Rights, Privileges and Obligations. A

member should exercise his rights and privileges and perform his duties
and responsibilities as defined in the Articles of Cooperation and By-
laws. He must therefore:

1. Be a member in good standing by:

a. attending pre-membership seminar before applying for

membership;
b. subscribing and paying at least the minimum share
capital requirements for a full-pledged member;
c. paying the installments on capital stock subscription
as it falls due and participate in the capital build-up of
the cooperative;
d. attending all meetings particularly the General
Assembly and all continuing educational programs of
the cooperative;
e. paying all his obligations promptly; and
f. Patronizing regularly the services of the cooperative.

2. Promote the purposes of the cooperative, the success of its

business, the welfare of its members and the cooperative
movement as a whole by:

a. obeying the rules and regulations provided in the

implementing Rules and Regulations of RA 6938, the
 By-laws, decisions of the General Assembly and the
Board and the policies and decisions that may be
promulgated by the Cooperative Development
Authority;

b. showing interest and extending know how, resources

and time for cooperative betterment; and

c. participating in its parliamentary affairs.

Section 4. Members’ accountability. Individual members shall be

accountable to himself, to other members and officers, cooperative and
ultimately to the community.

Rule IV
STANDARD FOR BOARD OF DIRECTORS

Section 1. The Board of Directors acting collectively in the

performance of their duties and responsibilities must take into
consideration the welfare and the well-being of the general membership
and its employees as well as the advancement of the cooperative, the
community and the nation. As such, they must exercise their functions
with due care and prudence like a good father of a family. Relative to
this, they should adopt bold and aggressive policies that can withstand
the rigors of public scrutiny and a policy of transparency for the welfare
of the general membership;
1. seek new ways in making the cooperative responsive,
viable and progressive;
2. coordinate with the committees and management to effect
harmonious business operation;
3. be supportive of the union’s and federation’s program and
activities where his cooperative is a member;
4. respect the powers of the manager as duly defined in the
Articles of Cooperation and By-laws of the cooperative;
and
5. implement the Cooperative Code of Conduct and Ethical
Standards for Members, Officers and Employees.

Section 2. Board of Directors’ Qualities – The Board of Directors should

possess the following qualities:

1. Hardworking
2. Understanding
3. Creative
4. Flexible
5. Persistent
6. goal Oriented
7. Honest
8. Trustworthy
9. Sincere

Section 3. Board of Directors’ Limitations - Any members of the Board

of Directors must not:
a. be engaged in the business which directly competes
with the business of the cooperative;
 b. be an officer of another cooperative whose business
is in conflict with the line of business of the
cooperative.

Section 4. Board of Directors’ Duties – The members of the Board of

Directors shall perform the following duties;

1. Protect the best interest of the members and the

cooperative
2. Implement the policies, by-laws, rules and regulations
of the cooperative
3. Comply with the legal and administrative requirements
of CDA and its Rules and Regulations.

Section 5. Board of Directors’ Responsibilities – The Board of Directors

shall have the following responsibilities;

1. prescribe forms , approve membership, and maintain

membership records;
2. recommend changes in the by-laws;
3. adopt, use and maintain cooperative seal;
4. borrow money for the cooperative and issue such
evidence of indebtedness as required;
5. decide upon the investment in other cooperatives and/or
other business based on the approved budget.
6. hire and dismiss employees;
7. determine the duties and responsibilities of the
manager;
8. fix the compensation, benefits and allowances of the
manager and staff;
9. determine the accountable officers and staff to be
bonded, fix the amount of bonds;
10. provide adequate insurance protection for employees,
all facilities and equipment;
11.fill vacancies when constituting a quorum;
12.provide for the installation of a sound accounting
system;
13.adopt the standard chart of accounts as prescribed by
CDA;
14.hire duly accredited auditor to audit the financial status
of the cooperative;
15.declare dividends in share capital and patronage refund;
16.enter into contracts;
17.sue and be sued;
18.formulate and evaluate major and minor operating
policies;
19.develop plans and programs for the cooperative both for
short and long term;
20.propose annual budget to the general assembly;
21.to purchase, receive, take a grant, hold, convey, sell,
lease, pledge, mortgage and otherwise deal with such
real and personal property as the transaction of the
lawful affairs of the cooperative may reasonably and
necessarily require;
22.accept and receive grants, donations and assistance
from foreign and domestic sources;
 23.initiate membership in Union and Federations;
24.to open book of accounts with the cooperative bank;
25.conduct training/ seminar for the members and officers;
26.prescribed rules and regulations governing withdrawals
for the savings deposits;
27.prescribe the form to be used for the Time Deposit
Certificates.

Section 6. Board of Directors’ Accountabilities - The Board of

Directors shall be directly accountable to the General Assembly.

Rule V
STANDARD FOR OFFICERS AND COMMITTEE MEMBERS

Section 1. Committees’ Duties – The Officers and committee

members must:

a. review and recommend sound policies to the Board of

Directors;

b. prepare an annual program of activities to be approved by

the Board of Directors and to be integrated with the
Cooperative’s annual plans and budget;

c. actively pursue the development of its members, promote

and foster harmonious relationship and cooperation; and

d. render annual report to the general assembly.

Section 2. Officers and Committee Members Responsibilities- the

Officers and Committee members shall have the following
responsibilities:

a. Propose and recommend policies to the BODs

b. Devise and recommend programs to improve and expand
credit services.
c. Install accounting and bookkeeping system in accordance
with the Standard Chart of Accounts.
d. Judiciously and religiously perform their functions by
faithfully implementing the program.

Section 3. Officers and Committee Members’ Limitations – The

following are the limitations for Officers and Committee Members:

1. Shall not act on any applications in violation of the

policies.
2. Shall not serve for more than three consecutive terms.
3. Shall not be directly or indirectly associated in any
financial matters or transaction with the cooperative.

Section 4. Officers and Committee Members’ Accountabilities- The

Officers and Committee Members shall be directly accountable to the
BODs.
 Rule VI

STANDARD FOR EMPLOYEES

Section 1. Employees Duties- The employees shall have the

following duties

1. Review and recommend policies and procedures to the

Board of Directors.
2. Implement and observe the cooperative’s business
policies and procedures;
3. Supervise the daily operations of the business
4. Undergo training, seminar and other manner of
education to improve their competence and perspective.
5. Shall render annual and periodic reports in the
form and in the manner prescribed by the Board of
Directors
6. Subject to the policies of the Board of Directors,
supervise and dismiss any agent and employee in the
management force.

Section 2. Employees Responsibilities – The employees shall have

the following responsibilities;

a. Shall have the general charge of all the phases of the business
operations of the cooperative.
b. Upon the appointment of their successor, they shall turn over all
monies and properties belonging to the cooperative which is on
their possession or in which they have direct control;
c. Shall maintain records and accounts in a manner that the true
and correct condition of the business of the cooperative may be
ascertained there from
d. Update and preserve the books, documents, correspondence and
records of whatever kind pertaining to the business which may
come in their possession;
e. Post an adequate bond to assure the faithful performance of his
duties.

Section 3. Employees Limitations- The employees shall have the

following limitations:

a. Seek elective position in the cooperative;

b. Engage in any business similar to the cooperative or act as
an officer or employee in any organization which business is
similar to the cooperative;
c. Receive directly or indirectly any favors or commission in
relation to their functions;
d. Tolerate or conceal any illegal acts which they have personal
knowledge to have been committed or to be committed ;
e. And other prohibited acts provided in the personnel manual.
Section 4. Employees’ Accountability – The employees shall be
accountable directly to the Board of Directors.

RULE VII
SANCTIONS
 Section 1. Offenses - The following shall be considered as grave
offenses:

a. Dishonesty
b. Gross neglect of duty
c. Grave misconduct
d. Being notoriously undesirable
e. Conviction of crime involving moral turpitude
f. Falsification of documents
g. Physical or mental incapacity or disability due to vicious
conduct
h. Disgraceful and immoral conduct
i. Inefficiency and incompetence in the performance of
duties
j. Act inimical, injurious or prejudicial to the best interest of
the cooperative
k. Willfully and knowingly assent or vote to patently
unlawful act;
l. Gross negligence or bad faith in directing the affairs of the
cooperative
m. Acquire any personal or pecuniary interest in conflict with
their duty
n. Attempts to acquire or acquires in violation of his duty,
any interest or equity adverse to the cooperative in
respect to any matter which has been reposed in him in
confidence.
o. By virtue of his office, acquires for himself an opportunity
which should belong to the cooperative.
p. Illegal use of confidential information

Section 2. The following are less grave offenses:

a. Simple Neglect of Duty

b. Simple Misconduct
c. Gross discourtesy in the Course of Duties
d. Habitual Drunkenness

The following are light offenses:

a. Discourtesy in the course of duty

b. Violation of reasonable rules and regulations
c. Lending money at usurious rate of interest
d. Willful failure to pay just debt.
e. Failure to act promptly in letters and request within
fifteen (15) days from receipt.
f. Failure to attend to the members who wants to avail
himself of the services of the cooperative

Section 2. Penalties – For grave and less grave offenses, expulsion from
membership, removal from office, and termination of employment shall
be imposed as determined by the board of directors upon compliance
with the due process of law requirement.

For less grave offenses, the following shall be imposed on a

graduated scheme upon compliance with the due process of law:
 First Offense – Reprimand

Second Offense – One (1) week to thirty (30) days suspension

from the office which includes suspension of
benefits and privileges in the cooperative with
temporary disqualifications to hold office or to
seek elective/ appointive positions as maybe
determined by the Board.

Third Offense – Expulsion from membership, removal from

office, or termination of employment from the
cooperative and permanent perpetual
disqualification.

Section 3. The board of directors upon determination of probable cause

and for the interest of the cooperative may preventively suspend any
members, officers, and employees. Provided that the preventive
suspension shall not be considered penalty. Provided further that during
the period of suspension the member, officer or employee shall cease
from performing functions and shall not be given access to any office
documents or business operations of the cooperative.

Rule VIII
MISCELLANEOUS PROVISION

Section 1. Definition, Modification and Revision- Any provision of

the Code of Conduct and Ethical Standards upon approval of the board
of directors may be defined, modified or revised.

Section 2. Liberal Interpretations. In case of doubt in the

interpretation of this Code of Conduct and Ethical Standards, it shall be
resolved in favor of the cooperative.

Section 3. Repealing Clause – Any resolutions, guidelines or rules

inconsistent with provision of this code shall be deemed repealed or
modified.

Section 4. Effectivity – This Code of Conduct and Ethical

Standards shall take effect upon the approval of the Board of Directors.

ADOPTED this 23rd day of February, 2021 at the Office of the

CSMC.

Affirming the correctness of the foregoing.

_____________________________
Secretary

Attested:

____________________________
BOD Chairman