BAGUIO CITY—When cooperatives invest in their people and innovate together, they transcend traditional business boundaries to become something greater: both social movements and economic forces united by shared aspirations.

This was the vision shared by leaders of cooperatives at the inaugural National Cooperative Summit 2025, which was held on Oct. 9–10 in Baguio City. It was a milestone event that drew nearly 2,000 delegates from cooperatives and federations nationwide. 

Themed “Cooperative Economics: Harnessing the Collective Power,” the event marked the first time cooperatives in Luzon, Visayas and Mindanao converged to share best practices, celebrate achievements, and chart a unified path forward.  

Ander Etxeberria-Otadui, head of Cooperative Dissemination of Spain’s Mondragon Cooperative Corporation, was the keynote speaker. He outlined how Mondragon became the world leader in cooperative movements and the leading business project in the Basque Country, operating 104 production plants in 37 nations, with sales in more than 150.

His speech set the tone of the summit, which was aimed at helping educate the delegates on how cooperatives should work together to build a strong cooperative economy.

This was his main message: By embracing innovation, cooperatives can succeed while maintaining their social mission. In the case of Mondragon, which was established in 1956, it now employs more than 70,000 people across the finance, industry, distribution, and knowledge sectors, having brought together 81 cooperatives guided by the values of “inter-cooperation, grassroots management, corporate social responsibility, innovation, democratic organization, education, and social transformation.”

One of Etxeberria-Otadui’s most striking points of discussion centered on profit allocation strategies that fundamentally differ from conventional business practices: 10% of Mondragon’s profit goes to the communities it serves; 30% to the workers; and 60% to building new technology, market expansion, and further research and development.

3 essential principles

It’s an approach that represents a fundamental reimagining of business purpose, said Cecile Laguna, acting president and CEO of 1 Cooperative Insurance System of the Philippines, who confirmed Etxeberria-Otadui’s call for cooperatives to help each other and work toward achieving shared prosperity when she addressed the delegates during Day 2 of the summit.

“Cooperatives today are never defined by traditional business models,” said Laguna. “They are embracing digital transformation, while balancing these three Rs: revenue, return, and reach.”

Laguna also highlighted these three essential principles:

First, elected values and good governance are necessary for cooperatives to succeed, as these ensure fairness and sustainability. She emphasized that cooperatives cannot simply declare democratic values—they must embed them in governance structures that are transparent, accountable  and participatory.

Second, a cooperative ecosystem integrates agriculture, housing, health, education, and government procurement to ensure fairness among all sectors. This holistic approach means cooperatives do not operate in isolation but as interconnected systems that strengthen entire communities.

Lastly, unity, connection and reinforcement are key to cooperative economics. The cooperative movement gains strength through solidarity across sectors, regions, and even national borders.

Work, as discussed throughout the summit, should therefore be seen as a means to contribute to society and community, with the goal of improving society and leaving a positive impact—while treating everyone with respect and equality. 

It’s a reframing with profound implications: In traditional employment, workers sell their labor to owners who capture the surplus value. In cooperatives, workers ARE owners, directly benefiting from the value they create while taking responsibility for collective success.

When workers have ownership and agency, productivity and innovation flourish because everyone has skin in the game.

Building strong communities

Rev. Fr. Anton CT. Pascual, the summit organizer and chair of the National Union of Cooperatives (NUC), likewise highlighted how “cooperative economics is essential for building strong communities and economies.” 

Each of the discussions by the summit’s extensive lineup of speakers, which featured billionaire-level local cooperatives, offered best practices that focused on these key lessons:

Solidarity and innovation go together. Cooperatives can compete globally while investing in people and maintaining social mission.

Governance matters. Good values require good structures. Successful cooperatives embed fairness, transparency, and accountability in their operations.

Think ecosystem, not enterprise. Cooperatives succeed when they build interconnected systems across agriculture, housing, health, education and other sectors.

Professionalize without losing your soul. Cooperative leaders need sophisticated business skills but must never forget that cooperatives exist to serve people, not profits.

Work is contribution. When labor creates value for the community, work becomes meaningful participation rather than mere survival.

Scale and diversity both matter. The movement needs both large institutional cooperatives and small community-based ones.

Cooperate across borders. The movement will grow stronger across the region—and globally—through shared learning and mutual support.

Government should enable, not control. The best policies create space for cooperatives to flourish on their own terms.

Long-term thinking builds generational wealth. Leaders who “think longer of what will happen to us” create communities that endure.

Circle as symbol

Pascual made use of the circle as the best symbol to represent the cooperative movement—representing “unity, eternity, equality, liberty and balance,” and focusing on “making rich communities” rather than rich individuals.

Concluding the summit with a solid call to action to start building a cohesive cooperative economy in the next 5 to 10 years, the delegates signed a manifesto to showcase their commitment to the movement’s path forward, recognizing that the real work begins once they return to their respective cities and provinces. 

They are galvanized by the momentum generated by this historic first gathering in Baguio City.