Forms and Functions of Non State Institution

Forms and Functions of
Non-state Institution
Dennis R. Arcillo, LPT
Objectives:
1. identify the characteristics of non-state
institutions;
2. explain the different forms and functions of non-
state institutions;
3. evaluate the roles and impact of non-state
institutions to the society; and
4. appreciate the importance of non-state
institutions to the people, the country, or the
world.
Task 1: Name that logo!
Directions: In this activity you are going to name the
common logos that can be seen around. You may ask for
help from your family members in order to identify all the
items given. Write your answer on your activity sheet or in
your notebook.
Questions to Ponder:
A. What do you think are the kinds of
institutions presented above?
B. Do you think these are helpful to the people

or to our society? Why?
Non-state Institutions
Governments have put up different
institutions that provide services for its
people's welfare, such as public works,
military and police forces, education,
transportation, public works, health
services, and other departments and
agencies.
Forms of Non-state Institutions
Non-state institutions intended to
promote the country’s economy
A. Banks
are companies, corporations, or
associations, or any lawful
organizations approved by the
government which is engaged in the
lending of funds acquired from the
general population through the
receipt of deposits and the sale of
bonds or obligations of any kind
(Jimenez 2017, 174).
Classifications of Banks
1. Universal and commercial banks

are banking institutions that grant
short term loans and varieties of
banking services.
Source: https://www.esquiremag.ph/money/industry/rural-
thrift-commercial-banks-differences-a00289-20200709
2. The thrift banking system –

These are banks specializing in
offering savings accounts and
home mortgages for clients. These
are sometimes referred to as Savings
and Loan Associations (S&Ls).
3. Rural and Cooperative Banks-

These are the most well-known type
of banks in the rural communities.
Their role is to promote and expand
the rural economy in an orderly and
effective manner by providing the
people in the rural communities with
basic financial services.
B. Corporation
Corporations are legal entities that
are independent and distinct from
their owners. Corporations enjoy
most of the rights and
responsibilities that people have;
they can enter agreements, loan and
borrow money, sue and be sued,
recruit workers, own assets, and pay
taxes.
C. Cooperatives
These financial institutions promote
and undertake savings and lending
services among their members.
These generate common pool of
funds to provide financial assistance
and other related financial services
to their members.
Types of Cooperatives in the Philippines
a. Credit Cooperative – is a
financial institution owned and
controlled by its members that
promote and undertakes savings and
lending services.
b. Consumer’s Cooperative –
frequently appears as retail outlet
possessed and worked by the
consumers, for example, food co-ops.
Its primary aim is to procure and
distribute goods to its members and
even nonmembers.
c. Producer’s Cooperative – is a
joint production undertaking of all
members where they processed
products from raw materials to
produce goods for sale by the
cooperative to its members and
nonmembers or their chosen market.
d. Marketing Cooperative – focuses
on supplying goods or production
inputs to members and marketing
their products.
e. Service Cooperative – concerns
giving services such as medical and
dental care, hospitalization,
transportation, insurance, housing,
labor, electric light and power,
communication, professional and
other services.
f. Multipurpose Cooperative – is a
combination of two or more of the
forms of different types of
cooperatives. Example of this is
Panabo Multi-Purpose Cooperative
(PMPC).
g. Advocacy Cooperative – is a
cooperative focused on advocating
cooperativism among its members
and the public through socially-
oriented projects, education and
training, research and
communication, and other activities
to reach out to its intended
beneficiaries.
h. Agrarian Reform Cooperative –
intends to develop an appropriate
system of land tenure, land
development, land consolidation and
land management which is organized
by marginal farmers who are
agrarian reform beneficiaries.
i. Cooperative Bank – is a
cooperative that aims to provide wide
range of financial services to its
members.
j. Dairy Cooperative – has members

that are engaged in fresh milk
products which may be possessed or
marketed as dairy products
k. Education cooperative – is
organized to own and operate
licensed educational institutions
without going beyond what is
stipulated in RA No. 9155 known as
the Governance of Basic Education
Act of 2001
L. Electric Cooperative – has the

purpose of managing the generation
and utilization of renewable energy
sources and the acquisition and
operation of sub-transmission or
distribution to household members.
m. Fishermen Cooperative – is
organized by fishermen members in
localities whose products either as
fresh or processed products.
n. Housing Cooperative – is a
cooperative that aims to provide or
assist members who actively
participate in the housing savings
program to have access to
o. Insurance Cooperative – aims to
venture into the business of insuring
life and property of cooperative and
their members.
p. Water Service Cooperative – is

organized to manage water systems'
distribution and operation to
distribute potable waters to its
members and their households.
q. Worker’s Cooperative – is
organized by workers who are
workers, aiming to provide
employment and business
opportunities to its members.
r. Other types of cooperatives as may be

determined by the Cooperative
Development Authority (CDA)*
D. Labor/Trade Unions
These are membership-based organizations
created by workers and their leaders who are
united to promote, protect their common
interest and welfare in their workplace. For
example, the same company's banana
plantation workers can create their own
union to be heard and be given what is due
to them, especially during disadvantageous
or unfair situations in their workplace.
Reasons why workers would join Trade Unions
1. Negotiate agreements with employers on
their wage/salary and working conditions
2. Deliberate significant changes to the
workplace
3. Discuss members’ concern towards their
employers
4. Escort members in disciplinary and
grievance meetings
Reasons why workers would join Trade Unions
5. Provide legal and financial provisions for
members
6. Raise concerns and demands for the
members such as free health and insurance
benefits, and the like
7. Take collective action to enforce the agreed
terms with employers (Jimenez 2017, 178)

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Forms and Functions of

B. Do you think these are helpful to the people

1. Universal and commercial banks

2. The thrift banking system –

3. Rural and Cooperative Banks-

j. Dairy Cooperative – has members

L. Electric Cooperative – has the

p. Water Service Cooperative – is

r. Other types of cooperatives as may be

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