The mondragon cooperative group, which is the 10thlargest entrepreneurial group in spain, is one of the most outstanding examples of worker cooperatives in history mondragon corporation, 20. For instance, the largest mondragon cooperative, fagor, is reputed to operate the most automated refrigeration assembly line in spain. Business ethics order description issues concerning shareholders and employees are of critical importance to the good functioning of any organization. The mondragon model a new pathway for the twentyfirst century joel a. Pdf mondragon corporation cooperatives, people working. Many scholars have studied mondragon as a strong example of an industrial cooperative with a. Drawing from a qualitative case study of the mondragon cooperative group, this article discusses. The mondragon cooperative corporation is a 35 year old experiment in building a. Mondragon corporation cooperative located in the basque region of spain. Objectives and competences mondragon unibertsitatea. Mondragon university has been at the forefront of educational innovation, fulfilling our commitment to generating a positive impact on people, enterprises and society. Mondragon is a cooperative that has 147 companies employing 80,000 workers. Media in category mondragon corporation the following 10 files are in this category, out of 10 total. In just over four minutes, mondragons new video sums up.
Jun 24, 2012 in may 2012, i had occasion to visit the city of arrasate mondragon, in the basque region of spain. Jul 09, 2012 basic principles of the mondragon cooperative corporation posted by catemccrea on july 9, 2012 leave a comment this summary consists of both direct quotes and our summary of the mondragon text. It is the tenthlargest spanish company in terms of asset turnover and the leading business group in the basque country. The mondragon model a new pathway for the twentyfirst century. We have chosen 10 commitments, as a tangible expression of mondragon s cooperative values, recognised by the main interested parties. Cooperative bodies and terminology, mondragon corporation. At mondragon, cooperative education is framed as teaching people group process, for example, teaching members how to make decisions together. Democratic organization all authority is vested in the general assembly, which consists of. An innovative cooperative group with a worldwide footprint, made up of different businesses and committed to intercooperation. In most forprofit businesses, labor is hired at the service of capital.
As a cooperative enterprise, in organisational terms mondragon is divided into four areas. The mondragon cooperative corporation, or mcc, is often considered the most successful example of workerowned enterprise in the world. They employ over 80,000 people, have their own banks, universities, research laboratories and social security systems. About us mondragon assembly is an international group specialising in the development of automation and assembly solutions. Jul 31, 20 the mondragon corporation is an inspiration. Excerpt from shift change the mondragon corporation is a corporation and federation of worker cooperatives based in the basque region of spain. The corporations mission combines the core goals of a. Discover innovative thinking, an innovation model based on cooperation and knowledge sharing among professionals with different. Cooperation and shared progress the focus on people is one of the values of mondragon, people who come together to achieve extraordinary feats and grow together we are committed to sustainable development of our businesses, our society and our planet we have our own model different, inclusive, responsible, fair and solidary. Following the global financial crisis in 2008, the mondragon cooperative corporation was used as an example of an alternative to capitalist development. Dec 06, 2009 i honestly havent given much thought to coops in terms of v. Corporate governance and the mondragon cooperatives. All structured data from the file and property namespaces is available under the creative commons cc0 license.
Governance of the mondragon corporacion cooperativa request pdf. The basic principles of the mondragon cooperative experience were approved at our first cooperative congress held in october 1987. It was established by a catholic priest, jose maria arizmendiarrieta jma, in. Fagor, after playing a key role in the creation of the mondragon cooperative experience, had been transformed into a multinational corporation competing in the global home appliance market. Basic principles of the mondragon cooperative corporation. Since its founding in 1956 in spains basque region, the mondragon corporation has been a touchstone for the. Internal regulations of ulgor declared, manual labor should enjoy the. Governance of the mondragon corporacion cooperativa article in annals of public and cooperative economics 751. Mondragon on the other hand has realized the importance of technology in the modern economy. This article presents a case study of the rise and fall of the mondragon cooperative fagor electrodomesticos 195920. For seven of these seminars, praxis received generous donations from. 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.
It is the tenthlargest spanish company in terms of asset turnover and the leading business group. Cooperative education like that is not currently being offered on an easily accessible basis in the philadelphia area. Mondragon university is a cooperative university, which combines the development of knowledge, skills, and values, and maintains close relations with business, especially mondragon cooperatives. Corporate responsibility web mondragon corporation. 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. 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. Barker is a futurist who began popularizing the concept of paradigm shifts and and vision in 1975. The mondragon bank perceives itself not just as a guardian of the money it uses, but as a catalyst for creating new business within the mondragon cooperative complex structure. The bakery in michael moores capitalism, a love story is fairly innocuous but since mondragon is the 7th largest corporation in spain and is expanding across the globe using contract labor, id have to describe it as a capitalist firm even though it is obviously different than general motors et al. At the same time, much of the recent literature on mondragon has questioned whether mondragons democracy has degenerated, without drawing definitive conclusions. Pdf the basque town of mondragon is home to one of the largest and most. The evolution of management in the mondragon cooperatives. 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. Are democracy and success compatible in a business organization.
The lessons of mondragon apply most clearly to worker cooperatives and other. The mondragon corporation is a corporation and federation of worker cooperatives based in. The largest cooperative in the world, they are a federated network of over 250 cooperative businesses who together are the seventh biggest group in spain. Will the point bank continue to dominate the players, or will they break free and take control by. May 11, 2012 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.
Many ask if the profit pooling system promotes free riding. It always has the welcome mat out for anyone who wishes to create more jobs. The cooperative group has amassed technical, managerial and financial resources comparable to those of a major corporation and used. Jul 22, 2014 excerpt from shift change the mondragon corporation is a corporation and federation of worker cooperatives based in the basque region of spain. The parent company in spain was created in 1977, one of the pioneers in the development of production and assembly technologies. You will learn about the history of regional autonomy in spain and of the mondragon cooperatives, visit service and industrial cooperatives, engage the mondragon innovation and knowledge research center, receive presentations on careers at mondragon university including on the new career of leadership and entrepreneurial innovation leinn and team academy, and attend a reception at. Degree in business administration and management by mondragon unibertsitatea. Opportunity for mondragon university students to work at the alecop cooperative. Capital is borrowed, stock is not sold for financing. There have been coops whose economic performance has been weak over. It bought an existing foundry and casting shop to free itself from outside. Mondragon is the result of the cooperative movement began in 1956, when he created the first industrial cooperative in donostia of this name, its business philosophy is reflected in its corporate values. 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.
Their commitment to innovation and job creation is a stated goal of the corporation. Web mondragon corporation corporate responsibility. Pittsburgh the united steelworkers usw and mondragon internacional, s. The mondragon cooperative corporation mcc is composed of a group of industrial, retail, service, and support cooperatives primarily in the arrasatemondragon valley in the basque country in spain. Apr 30, 2014 the case of mondragon by vincent navarro. 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. On october 27th, the united steelworkers and mondragon internacional, the worldwide network of cooperatives based in basque territory, announced a new alliance. Control mechanism in the mondragon cooperative corporation. Oct 19, 2016 mondragon corporations corporate video, 2016. The usw and mondragon, the worlds largest workerowned cooperative, announced our collaboration on oct. It is the headquarters of the mondragon corporation mc, a stunningly successful alternative to. 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. Mondragon cooperative corporation by kathy saroglia on prezi.
Also, i decided in this essay to examine the aspects of mondragons education that bears respect. Mondragon, a huge basque cooperative that is beating the crisis. Annual report, corporacion mondragon mondragon corporation. Mcc can be considered a world leader in cooperativism. The mondragon model a new pathway for the twentyfirst. The education of mondragon adventures in free schooling.
The mondragon cooperative movement, born in the 1950s around the local. Of these 91 are worker cooperatives and 44 are holding companies that are partly or. I present the case study of the spanish basque town of mondragon, which is. Jose maria arizmendiarrieta founded the cooperative, with the help of five of his students, in the early 1950s. Mondragon corporation wikipedia republished wiki 2. Economists recognize the crucial role they play in improving spains economic struggle. The town is best known as the birthplace of the mondragon cooperative corporation mcc, the worlds largest worker cooperative, whose foundation was inspired in the 1940s by the catholic priest jose maria arizmendiarrieta. In its industrial sector mondragon has had a rich experience over many years in. Files are available under licenses specified on their description page. The mondragon cooperative corporation is a 35 year old experiment in building a comprehensive cooperative society in which labor plays the primary and dominant role.
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. Pdf corporate governance and the mondragon cooperatives. The business of discovering the future and future edge, which was listed as the most influential business book of 1992 by library journal. The mondragon cooperative corporation united diversity. We believe cooperatives are an excellent example of a sustainable and socially just economic business model for the 21st century. Fees, grants and scholarships mondragon unibertsitatea. The largest worker cooperative in the world, mondragon corporation, is based in the basque region of spain, best exemplifies this claim. Oct 29, 2016 economists recognize the crucial role they play in improving spains economic struggle. Finance, industry, retail and knowledge, which operate independently within the framework of an overall strategy, all in line with the strategic policies established at the cooperative congress.
The mondragon corporation is a corporation and federation of worker cooperatives based in the basque region of spain. Nowadays, more that 68,000 worker are owners of one the most unique corporations in the world. There are many nonmonetary rewards, like access to education, free health care. The mondragon cooperative group has engaged in a domestic expansion process since the early 1960s and internationally since the 1990s.
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