Introduction to the study
Chapter One includes five parts namely (1) Background and Theoretical Framework, (2) Statement of the Problem and the Hypothesis, (3) Significance of the Study, (4) Definition of Terms, (5) Delimitation of the Study.
Part One, Background and Theoretical Framework, discusses the reasons for the choice of the problem and the theoretical framework upon which the study is anchored.
Part Two, Statement of the Problem and Hypotheses, identifies the major and specific problems that the research hopes to answer and hypotheses to be tested.
Part Three, Significance of the Study, enumerates the benefits that can be derived from the results of the study.
Part Four, Definition of Terms, includes the conceptual and operational definitions of important terms in the study.
Part Five, Delimitation of the Study, states the limits of the study.
Background and Theoretical Framework
A cooperative 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.(http://www.lawphil.net/statutes/ repacts/ra2009/ra_9520_2009.html)
The history of Savings and Credit Cooperatives (SACCOS) begins at 1850 A.D. from Germany. F.W. Raiffeisen established first SACCOS for economic development of deprived, poor, unemployed and starved people. Analyzing the history of all SACCOS in the world, it found that all are established to prioritize economic empowerment of people and relieving from poverty, unemployment & starvation. The economic development of highly development countries Britain, Canada, Japan and South Korea has a significant contribution of cooperatives.
The CDA issues the MORR. The MORR contains rules and regulations, performance indicators andstandards that will serve as a guide for cooperatives with savings and credit services. These guidelines are necessary to ensure the safety and soundness of the institution, and to improve and strengthen their operations. Compliance to these rules and regulations will help cooperatives engagedin savings and credit operations become stronger, viable and sustainableinstitutions with higher degree of public trust and confidence. (http://cooperativesector.blogspot.com/2008/05/manual-of-rules-andregulations-morr.html)
MORR has the following legal basis:in Section 13 of RA 6939 (CDA Charter) provides for the rule-making authority of CDA:“ The Authority is hereby authorized to promulgate, after due public hearing and upon approval of the President, such rules and regulations as may be necessary to implement the provisions. . .” of the Cooperative Code.
Here are the major componenents of MORR: General Guidelines on the Registration and Operation of Cooperatives with Savings and Credit Operations, Prudential Standards and Best Practices, Good Governance Policies and Ethical Standards, Organization and Management Principles Internal Controls, Deposit, Borrowing and Lending Policies, Model Articles of Cooperation and By-Laws.
With implementation of MORR it is hope that Public trust and confidence will be restored and enhanced, Financial operations of cooperatives will improve and be sustainable; Weak and small cooperatives will be strengthened and thereby grow; whileStrong cooperatives will become stronger and bigger.