Social Audit Performance of Multipurpose Cooperatives in Isabela, Philippines: Basis for Policy Recommendations

Abstract

The main purpose of this study is to assess the social audit performance of multipurpose cooperatives in Isabela, Philippines. Social performance of cooperatives is measured through the conduct of annual social audit required by the Cooperative Development Authority (CDA).  Cooperatives are evaluated using six different components: organization, membership, staff/employees, cooperation among cooperatives, community and nation, and network alliance and linkages.

The result of this study is envisioned to add knowledge in the field of auditing, specifically social audit for cooperatives. It will be used as a basis for policy formulation by the CDA to propel the social performance of multipurpose cooperatives and to help the different cooperatives achieve their goals for social responsibility.

The study used descriptive method. A total of 29 multipurpose cooperatives who are in operation for at least five years as of December 31, 2015 were included in the study.

The 2015 social audit report of each cooperative was subjected for analysis to determine the social audit performance of the different multipurpose cooperatives. Moreover, the analysis was supported by survey questionnaires given to and answered by multipurpose cooperatives’ managers.  Results of the study showed that majority of the multipurpose cooperatives obtained desirable and acceptable points in their social audit report. Most multipurpose cooperatives in Isabela are performing well and complying with the requirements of the different social audit components namely: organization, membership, staff/ employees, cooperation among cooperatives, community and nation building and network alliances and linkages. In addition, the study also discovered that there is no significant relationship in the level of social audit performance of multipurpose cooperatives and their profile variables.

            Policy recommendations emanating from the study are polices on: preparation of annual social audit plan for multipurpose cooperatives, design and implementation of Social Performance Management System for multipurpose cooperatives and policy on monitoring and evaluation of social responsibility programs addressing the components required in the social audit.