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.