The Magnificent Seven: Relevance of electric cooperative board of directors

LETTERS FROM THE AGNO

March L. Fianza

Every organization has its officials to oversee the operation of the business. We have the board of directors who oversee the total operation and the management staff that execute the policies crafted by the board of directors. In a corporation, the board of directors is elected by the stockholders or shareholders while the board of directors of a cooperative is elected by the member-consumers or what we call total membership. 

Electric cooperatives are not exempt. The BODs are elected by member-consumer-owners. But what really are the duties and responsibilities of BODs? Let us go back to the Rochdale pioneers. The 28 Rochdale pioneers were the first to apply the concept of cooperation by contributing their resources for the common interest of every member.
    Because they received very low wages, they thought of organizing themselves into a cooperative to contribute their meager wages to help every member in case one will need financial support. Because of the success of the Rochdale pioneers, membership increased.

So they thought of electing who would manage the cooperative. That is where the board of directors comes in. They elected their board of directors to protect the common bond of interest of every member for economic and social gains.

 The same principles apply to the board of directors of the electric cooperative. Once, we use the word cooperative, it signifies that the highest policy-making body of the cooperative is the members, consumers, owners, or for CDAs cooperative, the total membership.

The board of directors should protect these common interests, in fact, they should embrace them. So whatever is the common bond of interest, the board of directors should follow to the best of their ability in as much as they were elected by the member-consumers as their alter-ego.

 The recent decision of the Beneco BODs that rejected the endorsement of the NEA-BOA is a test of character. Whether they protect the common bond of interest of member-consumers or purely for personal interest. Taking the cue from the member-consumer-owners as well as the overwhelming support from the LGUs, private sector, I could see that they prefer the OIC GM to be appointed as the general manager, if that is the basis.

So, the six members of the board adhered to the common bond of interest of the member-consumer-owners. They exercised their mandate to protect the rights of every member-consumer against outside interference. It was very clear in the congressional hearing that the electric cooperative has the right to appoint their general manager as stated by the NEA-BOA member and not the NEA-BOA.

The NEA-BOA should respect these basic rights of the cooperative. As they say, “the voice of the people is the voice of God.” I liken Beneco to a well-oiled bus and the member-consumer, the owner are the passengers, and they prefer a driver who is experienced to bring them to their destination, so be it.

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Integrity. Every man is measured by a certain character that you will be remembered by. One character they see in a man is about integrity. How do we measure integrity? Can it be measured in an hour, a day, weeks, or years, or worse with just one question?

One controversial issue about integrity and honesty recently happened during the final interview of applicants for the general manager (GM) of a certain electric cooperative. During the congressional hearing, one congressman asked one member of the National Electrification Administration Board of Administrators (NEA-BOA).

He was asked “What are your other criteria in the selection of the GM?” The NEA BOA answered: “I ask a question and the interviewee will answer and by their answer, we can see their integrity.” While the question was controversial and not related to the job, I will not dwell on that.

But the lingering question is, is it right to judge someone’s integrity with just one question and an answer? I find it surprising because integrity cannot be measured by instant questions. You have to be with the man, work with him, at most to be with him for a number of years.

Sometimes, we have to look at his personal relationship, even his family. Is he a loving family man? God-fearing?\I am a member-consumer-owner of Beneco and I have known him for a while but I cannot judge his integrity. But what I know about him is this: 30 years ago, a young graduate from Saint Louis University (SLU) with a Bachelor of Science in Electrical Engineering was excited to work and apply his years of schooling. Just like most of us, we are all excited to work and apply our profession.

He applied in an electric cooperative a few days before the earthquake in July of 1990 and was told to come later. After the earthquake, together with the other applicants, they were told to come back. They were immediately called to work and do extensive rehabilitation of our devastated electric supply.

The applicants and the young engineer included, had to carry electric poles, electrical lines, and do other heavy-duty works. As years went by through thick and thin, he stayed with the electric cooperative despite the fact that he could have worked in other companies that offered him higher pay. But he did not. As years went by, he was promoted to supervisor, department manager because of hard work and dedication, and today appointed as OIC general manager. If I could summarize that, I call it INTEGRITY.

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 In order for a man to be a leader he must have followers. And to have followers he must have their confidence. Hence, the supreme quality for a leader is unquestionable integrity…if a man’s associates find him guilty of phoniness, if they find that he lacks forthright integrity, he will fail. His teachings and actions must square with each other. – Dwight D. Eisenhower

I could see that our OIC GM has overwhelming support from the member-consumer-owners and the officials of Baguio and Benguet. Mr. Dwight D. Eisenhower is correct.