They include a set of ideas forged over more than 30 years of operation as a cooperative, and are set out below in a condensed version. Are democracy and success compatible in a business organization. The mondragon cooperative corporation mcc, a system of worker cooperatives located in the. Mondragon corporation cooperative located in the basque region of spain.
The cooperative congress is a governance body that defines common principles mission, vision and values for the network, the mondragon corporation, sets its sociobusiness policy, and establishes priority action strategies for the network during a given period. Don jose was a fascinating man whose background shows courage and a willingness to. The scale of the cooperative corporation can become an obstacle in the future, but if managed properly. We believe cooperatives are an excellent example of a sustainable and socially just economic business model for the 21st century. What stands out is that mondragon cooperatives succeeded in creating for their members a good way of life, a good. The corporation s mission combines the core goals of a. Excerpt from shift change the mondragon corporation is a corporation and federation of worker cooperatives based in the basque region of spain. This company is actually a federation of 110 worker cooperatives. Business ethics order description issues concerning shareholders and employees are of critical importance to the good functioning of any organization. Fagor, spains largest manufacturer of domestic appliances and also part of the mondragon cooperative, has successfully managed down. Democratic organization all authority is vested in the general assembly, which consists of.
Posted by catemccrea on july 9, 2012 leave a comment in most forprofit businesses, labor is hired at the service of capital. The mondragon model a new pathway for the twentyfirst century. A members capital account keeps track of his or her. Taking its name from the small town in the basque country of northern spain where it was founded, the mccs reach now extends across spain, europe and the globe. Mondragon corporation is the embodiment of the cooperative movement that began in 1956, the year that witnessed the creation of the first industrial cooperative in mondragon in the province of gipuzkoa. This may sound like just another big player in the multinational corporate scene, however mondragon corporation is anything but your typical corporation. Better understanding and implementation of corporate governance. In an academic essay format, compare and contrast the mondragon cooperative corporation mcc with a traditional capitalist corporation of your choice and determine how the treatment of these stakeholders impacts on ethical outcomes. Basque country of spain, is still considered to be one of the. This research studies one of the biggest and most successful cooperatives in the western world, mondragon corporation cooperative located in the basque. It is the headquarters of the mondragon corporation mc, a stunningly successful alternative to the capitalist organization of production.
Praxis peace institute has established a special relationship with the mondragon cooperatives and is a proud educator of cooperatives and the ethics and values of cooperatives. In 1996 mcc published their first corporate management model rooted in the european quality standards. For seven of these seminars, praxis received generous donations from. The business of discovering the future and future edge, which was listed as the most influential business book of 1992 by library journal. Media in category mondragon corporation the following 10 files are in this category, out of 10 total. The mondragon cooperative group today the mondragon cooperative corporation mcc is a highly complex federation of cooperatives bound together by much more than a formal contract of association. It is often said that a company cannot be both efficient and equitable at the same time. Mondragon corporation wikipedia republished wiki 2. It is the tenthlargest spanish company in terms of asset turnover and the leading business group in the basque country. Following the global financial crisis in 2008, the mondragon cooperative corporation was used as an example of an alternative to capitalist development. Arizmendiarrieta founded the cooperative, with the help of five of his. The mondragon cooperative was started in 1954 by a jesuit priest named don jose maria arizmendiarreta i will refer to him as don jose from here on and five young men. The mondragon model a new pathway for the twentyfirst. The usw and mondragon, the worlds largest workerowned cooperative, announced our collaboration on oct.
Jose maria arizmendiarrieta founded the cooperative, with the help of five of his students, in the early 1950s. Corporation is the embodiment of the cooperative movement that began in 1956, the year that witnessed the creation of the first industrial cooperative in mondragon in the province of gipuzkoa. Mondragon corporation mc is the most successful business group in the basque country, and the seventh largest in spain. Spains giant cooperative where times are hard but few go bust this article is more than 7 years old the northern spanish town is dominated by its eponymous 15bn corporation that. Their commitment to innovation and job creation is a stated goal of the corporation. In this cooperative form, the corporations net worth is reflected in a system of internal capital accounts. Mondragon has sales and production presence on five continents and employs more than 80,000 people around the globe. The mondragon model a new pathway for the twentyfirst century joel a.
On one hand, mondragon companies must be competitive in. Barker is a futurist who began popularizing the concept of paradigm shifts and and vision in 1975. The mondragon corporation, a group of cooperatives, is a thriving example. The mondragon cooperative corporation is a 35 year old experiment in building a comprehensive cooperative society in which labor plays the primary. Cooperative corporation mcc in the basque country which is a point of reference for participatory enterprises all. The university masters degree in cooperative enterprise and social business management develops skills for the overall management of cooperatives and social economy organizations in the heart of one of the most cuttingedge cooperative ecosystems in the world. The ties that link the mondragon cooperatives are strong, as these bonds emanate from a humanist concept of business, interrelated by a philosophy of participation and solidarity and a shared business culture rooted in a number of basic. The case of the mondragon cooperative corporation article pdf available in annals of public and cooperative economics 744. The mondragon corporation is a corporation and federation of worker cooperatives based in the basque region of spain. The cooperatives do not discriminate on the basis of religion, politics, ethnicity, or sex when it comes to becoming a member of the cooperative. The largest worker cooperative in the world, mondragon corporation, is based in the basque region of spain, best exemplifies this claim. Basic principles of the mondragon cooperative corporation. Nowadays, more that 68,000 worker are owners of one the most unique corporations in the world.
The mondragon domestic and international expansion process must be further described. This would seem to indicate that mondragon corporation has accumulated big reserves at the expense of its owners, of its members. Pdf the basque town of mondragon is home to one of the largest. Pdf mondragon corporation cooperatives, people working. They employ over 80,000 people, have their own banks, universities, research laboratories and social security systems. They have proven to be incredibly resilient to the on going economic crisis. Of these 91 are worker cooperatives and 44 are holding companies that are partly or. This research studies one of the biggest and most successful cooperatives in the western world, mondragon corporation cooperative located in the basque region of spain. The corporations mission combines the core goals of a. The mondragon cooperative movement, born in the 1950s around. On october 27th, the united steelworkers and mondragon internacional, the worldwide network of cooperatives based in basque territory, announced a new alliance. The successfully managed cooperatives in winconsin, united states, are those with good corporate governance pitman, 2005.
Economists recognize the crucial role they play in improving spains economic struggle. Mondragon wanted to connect with other organizations to to show we are excellent. It was founded in the town of mondragon in 1956 by graduates of a local technical college. The evolution of management in the mondragon cooperatives.
About us mondragon assembly is an international group specialising in the development of automation and assembly solutions. Each member has an individual capital account to reflect the value of the members relative equity in the corporation. Pittsburgh the united steelworkers usw and mondragon internacional, s. The basic principles of the mondragon cooperative experience were approved at our first cooperative congress held in october 1987.
Taking its name from the small town in the basque country of spain where it was founded, the mccs reach now extends across spain, europe and the globe. Mondragon university has been at the forefront of educational innovation, fulfilling our commitment to generating a positive impact on people, enterprises and society. This has not only ensured that the cooperatives are managed in the interests of their employees, but also that all employees have a strong bond with mondragon. The corporation has its own governing council, comprised of a president, vice. The mondragon cooperative corporation was formed in 1991, though its first coop, fagor, started in 1955. Mondragon is a cooperative that has 147 companies employing 80,000 workers. The parent company in spain was created in 1977, one of the pioneers in the development of production and assembly technologies. All the mondragon cooperatives that began after ulgor used its experience. Mondragon corporation project gutenberg selfpublishing. At the same time, much of the recent literature on mondragon has questioned whether mondragons democracy has degenerated, without drawing definitive conclusions. In addition, each cooperative sends delegates to the general assembly of the mondragon network, where the major strategic issues of the network are decided. The mondragon cooperative corporation united diversity.