Jo B. Bitonio. CDA Dagupan

The implementation of this Code shall create positive motivation rather than punitive control, hereby penalties shall apply only when necessary and only the extent required by the circumstances.

Jo B. Bitonio. CDA Dagupan

An Ethics Committee is hereby created and shall be composed of three (3) members to be appointed by the Board of Directors. Within ten (10)days after their appointment, they shall elect from among themselves a Chairman, Vice-Chairman and a Secretary who shall serve for a term of one (1) year or until successors shall have been appointed and qualified. No member of the Committee shall hold any other position in the Cooperative during his term of office.

Article I Creation of Ethics Committee

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The Ethics Committee shall: 1.Develop Code of Governance and Ethical Standard to be observed by the members, officers and employees of the cooperative subject to the approval of the BOD and ratification of the GA; 2.Disseminate, promote and implement the approved Code of Governance and Ethical Standards; 3.Monitor compliance with the Code of governance and Ethical Standards and recommend to the BOD measures to address the gap, if any;

Article 2: Functions & Responsibilities

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4.Conduct initial investigation or inquiry upon receipt of a complaint involving Code of Governance and Ethical Standards and submit report to the BOD together with the appropriate sanctions; 5.Recommend ethical rules and policy to the BOD; 6.Perform such other functions as may be prescribed in the By-laws or authorized by the GA.

Article 2: Functions & Responsibilities

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Offenses & Violations

Article 3:

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An officer should not be delinquent in his/her loans

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Should an officer is delinquent of his/her loan , an officer is disqualified to be elected in any position in the cooperative

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In attending meetings – The number of hour/s Late should be deducted prorate from the Officers’

Per Diem

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Do not wear slippers, shorts and sleeveless shirts

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Wear Uniform

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No Sleeping During Meeting

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No Text and Call during Meeting

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No to Excessive Calls during Meetings

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No to Conflict of interest

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No to Nepotism

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No to Abuses of Resources

1. Remuneration 2. Transportation 3. Communication 4. Travel 5. Training 6. Entertainment

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No to Commissions (kickbacks)

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No to Board interference in management duties

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No to One-Man leadership

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Non to Excessive spending for non-earning assets (building, cars, computers, lavish meetings, excessive travels, etc.)

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No to Falsifying financial information

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No to incomplete, false records No to tampering of records

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No to overspending

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No to irregular external audits

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No to accepting free or greatly discounted products, services or other items of an extraordinary value that are suitable for personal use from an employee or representative of a supplier, vendor, subcontractor, consultant or competitor of the Cooperative

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Personal interests or activities that are or could only be reasonably accomplished using Cooperative, material, equipment or proprietary information (e.g., working for an outside interest - whether paid or unpaid - whose activities could only reasonably be conducted during normal business hours)is prohibited.

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Directly or indirectly acquiring or turning any business opportunity which ought to be available to the Cooperative to your own or someone else’s personal advantage is prohibited.

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During Meeting the avoid the 5 S • Smile (smiling only)

• Sit (sitting only)

• Sleeping during meeting

• Snoring

• Intent is only to Sign the voucher

(receive honorarium without participating)

Jo B. Bitonio. CDA Dagupan

Directors, officers and committee members, who willfully and knowingly vote for or assent to patently unlawful acts, or who are guilty of gross negligence or bad faith in directing the affairs of the Cooperative or acquire any personal or pecuniary interest in conflict with their duties as Directors, officers or committee members shall be liable jointly and severally for all damages resulting there from to the Cooperative, members and other persons.

Article 5: Liabilities of Directors, Officers and Committee Members.

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When a director, officer or committee member attempts to acquire, or acquires in violation of his duties, any interest or equity adverse to the Cooperative in respect to any matter which has been reposed in him in confidence, he shall, as a trustee for the Cooperative, be liable for damages or loss of profits which otherwise would have accrued to the Cooperative.

Article 5: Liabilities of Directors, Officers and Committee Members.

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Article 5: Possible Penalties

1. Letter Reminder 2. One on One meeting 3. Hearing 4. If found guilty: suspension or termination

depending on the degree of violations committed

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Article 6 Code of Conduct for Cooperative Employees

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Objectives

• To provide management with prudent guidelines in the administration of employees’ discipline, and to ensure and maintain high level of efficiency; and

• To provide the employees with the basic guidelines of personal conduct in the performance of their job.

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Employees shall: 1. Report on time and be ready to perform their

assigned tasks at the start of their official working time.

2. Practice courtesy at all times in dealing with visitors, customers, co-employees and officers. They shall entertain customers and visitors courteously and say thank you for every transaction attended.

3. Exercise prudence in discharging their day-to-day tasks by reporting to the immediate supervisor any problem that arises during their tour of duty and to refrain from discussing the same in

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4. answered before the third ring. When making or receiving a call, the employee must identify himself/herself. When receiving a call for somebody who is not available at the time of the call, he/she shall ask the name and the message of the caller. Say thank you at all times for every attended calls.

5. Maintain proper behaviour at the workplace at all times by using appropriate language and manners.

6. Perform his/her job with utmost honesty and maintain high moral standards of behaviour and shall refrain from indecent, lewd, and immoral acts which can give occasion for scandal or loss of confidence in the company.

Employees shall:

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7. Exercise expediency in delivering goods and services to its clientele. In the private corporate world, any form of delay is a mortal sin and therefore unforgivable.

8. Put official communications in writing.

9. Protect the interest of the cooperative

10. Wear their cooperative I.D. within the company premises and to wear the appropriate uniform prescribed by the company during official working hours/days in accordance with the schedules set for each uniform suit/style.

Employees shall:

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11. Exercise due care in the handling/use of the properties belonging to the company or entrusted by the company. Improper/incorrect use of equipment or parts thereof that leads to the damage of said property shall constitute a violation.

12. Comply with and perform all reasonable directives and instructions of duly authorized superiors to maintain the work-flow and promote harmony and good order which are essential to the efficiency of operations and realization of the corporate objectives of the company.

Employees shall:

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PENALTIES

After due process, an employee who violates a particular provision of this Code shall be disciplined on the basis of the following penalties:

A – Verbal Warning

B – Written Warning

C – Suspension depending on the gravity of the offense

D – Termination

Except for offense(s) punishable by termination, counting of offense(s) begins every 1st day of the year and ends every last day of the year.

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VERBAL WARNING

Is an advice calling the attention of the employee if the violation is a minor offense and no damage caused by such simple infraction.

WRITTEN WARNING

Is a formal letter or notice to an employee as the employee’s violation of a company policy or rules and regulation.

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SUSPENSION

Is a forced temporary absence from work with pay which may be imposed as a penalty depending upon the gravity of the offense committed.

A. PREVENTIVE SUSPENSION

• Is not a penalty but an interim measure to be imposed depending on the gravity of the offense allegedly committed pending formal investigation of a reported violation to temporarily remove the respondent from the scene of his misfeasance/malfeasance and to preclude the possibility of exerting undue influence or pressure on the witnesses against him or tampering/destruction of documentary evidence on file.

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Preventive suspension without pay can be imposed only for a maximum period of thirty (30) calendar days. In exceptional circumstances, the company has the option to extend the suspension beyond (30) days provided that the employee is paid his salary.

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During the period of preventive suspension, the employee is not allowed to enter the premises of the company except to attend the investigation proceedings/hearings of the case.

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B. PUNITIVE SUSPENSION

Is an imposition of a penalty of an erring

employee after conviction for an offense or a misconduct committed.

TERMINATION

Is the separation of the employee for employment after the facts and circumstances of case have been fully considered, established and proofs

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Date Approved:

Signatories:

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Reference CDA ACBL template

Regional Tripartite Wages and productivity Board – I. A guide Handbook in the Formulation of a Code of Conduct and Discipline For Micro, Small and Medium Establishments (MSMEs)

Josefina B. Bitonio (2011) Code of Ethics and Conduct for Cooperatives. Lecture Presentation for DAR

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