Service over and above profit — what our principle means
Every cooperative says it. But what does "service over and above profit" actually look like at ISATUCMPC?
Tucked into Article VIII Section 1 of our Articles of Cooperation is the phrase that anchors everything we do:
“Adhering to the principle of service over and above profit, the cooperative shall endeavor to provide quality goods and services to its members.”
It sounds nice. But what does it actually mean in practice?
Net surplus belongs to members
Every year, what other businesses would call “profit” we call “net surplus” — and 78% of it goes back to members as patronage refund and interest on share capital. Only 22% stays in the cooperative for reserves, community development, and education.
The math (per Article IX of our Articles of Cooperation):
- 10% — Reserve Fund (cooperative’s safety cushion)
- 3% — Community Development Fund (projects benefiting our area of operation)
- 2% — Education and Training Fund (member development)
- 7% — Optional Fund (land, building, future investment)
- 78% — Patronage refund and interest on share capital (back to members)
We don’t chase profit at members’ expense
When the cooperative chooses between charging members a higher rate (more profit) or providing a fairer service (more value), the principle says: choose service.
That’s the difference between a cooperative and a bank. A bank serves its shareholders. We serve our members — because our members are our shareholders.
How you can live the principle
If you’re already a member: keep patronizing the cooperative’s services. Every transaction strengthens the surplus that comes back to you and your community.
If you’re not yet a member: join us. The principle works because we work together.
Mag-uswag kita upod.