Collectivism in the Context of Cooperatives
The philosophy of collectivism could serve as a qualitative backbone to the operation and governance of cooperatives that could guide the cooperative actors (i.e. members and elected officers) in their behavior and activities. Essentially, every member joins cooperatives with sense of emotional connection in which he/she seeks to become a part of a group and be socially recognized. To express his/her interest, he/she is willing to give up some of his/her resources and commit efforts with an expectation that he/she could generate positive value and can make him/her economically better off and because of this, the group could improve further their social bond (Nwosu & Gatawa, 2021). Besides, they could also participate in the governance of their cooperative by electing their functioning officers and submit themselves to the authority that is guided by the VMGs and policies that the members themselves have formulated.
The interactions of the members in their cooperative are motivated by their collectivist behavior wherein they feel belongingness to a larger group that cares for them. Most likely, they have the tendency toward self-improvement which is rooted from their concern for the well-being of their larger group. They imbibe collectivist culture in which they prioritize collective goals and they promote good relationship and interdependency (O’Neill, et al., 2016) among members. The members have deeper connection among their co-members for their own survival and as an expression of their pride, loyalty and interdependence (Koch & Koch, 2007). Consequently, the members would feel pressure to adjust to their cooperative behaviors down to match the prevalent norms (Triandis, 1995) being adopted by the members. In this case, the members would have to meet the standards shared between the members in order to maintain harmony in one’s relationship to the group (Wink, 1997). They also perform competitive acts of achievement and make positive statements about themselves in order to stand out (Goncalo & Staw, 2006) in the community. Moreover, the members would set ethical standards based on their norms and they make ethical decisions to affect their individual behavior (Janis, 1982). The members are more likely to perceive negative practices that are inconsistent with the welfare of the collective (Erez & Early, 1993).
Collectivism could further allow the cooperative to overcome insecurities since the elected officers and the management are disciplined and passionate (Yang, Zhou & Zhang, 2014) to their functions. The elected officers and management could work for the best interest of the collective and it could result to psychological adjustment that they are more geared towards doing business practices that are not harmful to the collective and instead they are guided by the collectives’ norm and moral domain (Nyaw & Ng, 1994). In this manner, the entrusted resources of the members are taken cared off and they are more likely to be utilized for the general welfare rather than for the individual interests. For example, the officers would have to evaluate their actions whether it is beneficial to the collective before implementing it. More specific is that, before the management request for additional compensation, they would have to evaluate the reasonableness and without sacrificing the collective. Also, when an individual seeks for a favor (e.g. additional loan, extension of terms, discounts) from the cooperative, the collective interest is given more emphasis than that of the favor being asked by the individual.
On the pioneering work of Hofstede (1980), he described that collectivism emphasizes on group goals than personal or individual goals. Another dimension he developed was the power distance in which in an organization, the members understood that the power of the collective is supreme rather than the individual. In contrast with other organizations, an individual can be more powerful and can dominate the decisions of the group because power is based on monetary contributions. While for collective organizations such as cooperatives, there is equal representation and the general will supersedes individual’s interests. The main focus of the organization is in attaining the collective aspirations that were codified in their VMGs rather than on the interest of individuals. In collectivist organizations, they have strong regard to their shared goals and base their identities on group memberships (Yang, Zhou & Zhang, 2014). In cooperatives, Figure 1 illustrates that the members are the most powerful in a cooperative and their interest are given priority above other stakeholders and any individual. Secondly, other stakeholders (e.g. suppliers, lenders, employees, community and government) who also have voice to the cooperative but their interests are next to the general members. Lastly, the individual’s interest and power are subordinate to the general members’ and other stakeholders’ interests. In practice, the concern of the stakeholders and individuals will be deliberated and it will be decided finally by the general members.
Figure 1 . Power Distance in a Cooperative in the Perspective of Collectivism
In a cooperative setting, matters are to be decided upon by the general members through an organized meeting called as general assembly . In a general assembly, agenda are formulated by the Chairman of the BODs to be presented to the members for decision-making. The agenda will be presented for discussion, deliberated, debated and finally decided upon trough election process. Meanwhile, other matters that are relevant to members can also be deliberated and decided upon. The election process follows “one-man, one vote” that gives the members equal opportunities. The result of these processes would reflect the collective aspirations of the members and they are being codified (i.e. written) in order to guide the actions of the members, elected officers and the management. Literally, these are the VMGs and that are being supported by policies and strategic plans that are being used by the elected officers and management as their guidelines in undertaking the business operation of the cooperative. When the BODs and the management perform actions that are geared towards attaining the collective aspirations, the members’ attitudes towards their cooperative could improve (Hakelius & Hansson, 2015). Beyond the literal forms of the VMGs, these are being translated into realistic actions wherein the members, elected officers and management are expected to work and become responsible stewards of the cooperative’s resources.
In a cooperative, the codified VMGs are the foundations of the business affairs and decision-making processes. The vision is a reflection of the founders’ realistic dreams that compels the actions and energizes the structure of the organization (Altiok, 2011). Hence, the cooperative’s vision reflects the aspirations of the members that will guide the formulation of their mission and goals that will consequently energize the members, elected officers and management. The mission declares the core purpose and planned direction of the cooperative that would be implemented and accomplished through collective efforts. The goals present the steps to be implemented in order to meet the agreed vision and mission. Henceforth, the elected officers and the management are guided by the cooperatives’ goals since they are more specific and measurable statements that could be applied in the cooperative’s systems and procedures. Moreover, the VMGs set the accountability of the elected officers in which they have to exercise supervision to the management because they represent the general membership and they themselves were also part of the formulation process. These VMGs are the basis of policies in conducting the business operation of the cooperatives. Examples of these policies would include payment of subscribed shares, distribution of dividends, encouraging thrift and savings, increasing number of members, among others.
The VMGs represents the codified outcomes of the collective action of the members. In this case, this research would reflect on collectivism by particularly looking into the collective aspirations in terms of economic, social, and political. This research argues that collectivism as a way of life is embedded in the VMGs in which the VMGs can be analyzed beyond their simplistic literally forms in which they representex-post facto behaviors of the members who embrace collectivism as a way of life. The VMGs are explicitly established the collectively agreed aspirations of the general membership that are translated into actions by the cooperative actors such as the individual members, elected officers, and the management.