MONDRAGON HUMANITY AT WORK GOOD LIFE FOR ALL
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1 MONDRAGON HUMANITY AT WORK GOOD LIFE FOR ALL
2 COOPERATIVES WITHIN MONDRAGON Industrial 67 Credit 1 Consumer 1 Agricultural 4 Education 8 Research and Development 15 Services (Consulting, Engineering, Food, Insurance, ) 5 Total cooperatives 101
3 MISSION Mondragón Co-operative Corporation (MCC) is an entrepreneurial socioeconomic entity with deep cultural roots in the Basque Country, created by and for the people, inspired by the Basic Principles of our Co-operative Experience, committed to the community, to the improvement of competitiveness and to the satisfaction of customers, to create wealth within society through entrepreneurial development and job creation, preferably membership-jobs in co-operatives.
4 MISSION (II) Based on a commitment to Solidarity. Using democratic methods (one person, one vote). Encourages the participation and integration in: Management. Profits. Ownership. Harmonizing projects aimed at social, business and personal development.
5 MONDRAGON Intercooperation Cooperativa CooperativaCoop Coop Cooperativa Coop Cooperativa Cooperativa Coop Cooperativa Cooperativa Educational Welfare/ Health mutual Financial R+D Centers
6 International Intercooperation MONDRAGON ARIZMENDI Co-op Assoc. San Francisco Bay ASCES (Valencia) CLADE (Catalunya) EVERGREEN Cleveland Ohio
7
8 1. Open Admission and neutrality 2. Democratic Organization. 3. Sovereignty of Labor. 4. Instrumental and Subordinate Nature of Capital. 5. Participatory Management. 6. Wage Solidarity. 7. INTERCO-OPERATION. 8. Social Transformation. 9. Universality. 10. Education The keys Corporate BASIC PRINCIPLES
9 Structure of the Power POWER Factor of production (Tool, Resource) Conventional Companies (Sociedades Anónimas) Capital Labour Cooperatives Labour Capital
10 The keys corporate values CO-OPERATION Owners and protagonists PARTICIPATION Commitment to management SOCIAL RESPONSIBILITY Distribution of wealth based on solidarity, and involvement in the community INNOVATION Constant renewal
11 CHALLENGES FOR MONDRAGON 1- TO MAINTAIN THE VALUES AND COOPERATIVE BASIC PRINCIPALS 2- TO BE INNOVATIVE * SOCIAL DEVELOPMENT * TECHNICAL DEVELOPMENT IN ORDER TO CREATE WEALTH WITHIN SOCIETY TO FIND THE BALANCE BETWEEN SOCIAL TRANSFORMATION + SUSTAINABILITY
12 Privacy Policy Contact Unique product Semi-automatic concept User-friendly design Small footprint Flexible functionality
13 CHALLENGES IN NEW SECTORS 1- New energies 2- Health + Food (Biotech, Biomedic) 3- New Inf+Com Technologies 4- The third age (elderly people sector) 5- New materials (electric car, aeronautic, railway)
14 INNOVATION IN MONDRAGON 564 family patents 160 M euro invested in R+D 15 Research and Development Centers people in Research Centers Participating in 91 R+D projects in Europe 19% sales with new products
15 The European Parliament has passed a resolution that recognises the important role played by co-ops in the social economy. Adopted on 19 January 2017, the EP Resolution on a European Pillar of Social Rights states that co-operatives, together with other social economy enterprises, provide a good example in terms of creating quality employment, supporting social inclusion and promoting a
16 Basic Structure within a Cooperative Supreme Board General Assembly Accounting Auditors Watchdog Committee Board of Directors Governing Council Social Council Advising Board Executive Board General Manager Management Council Department Director A Department Director B Department Director C Department Director D Department Director E
17 Membership Rules to enter MONDRAGON Relocation of staff among cooperatives. Restructuring results (from the gross profits). Within the sectorial groups (>15%-<40%). Within corporative funds in MONDRAGON (Investment Fund 10%), (Education Fund 2%), (Solidarity Fund 2% - for compensation in case of losses). Solidarity in profit distribution (net profit of each co-op). 10% Fund of Education (Law 10%). 45% Fund of Reserve of Co-op (Law 20%). 45% Returns to workers Capitalize Interest <7,5% in cash Initial capital ( euros in 2015). Solidarity in compensation. Reporting of data to MONDRAGON Headquarters. Not internal competition between co-ops within MONDRAGON
18 Our organisation
19 Conventional Corporation VS. MONDRAGON Authority Conventional Corporations Cooperatives (autonomous) Sectorial Divisions MONDRAGON Conviction Values
20 Expansion model of MONDRAGON (Strategic Plan ) Information transparency. Same style of Management overseas. 30% of property should belongs to worker. 5% of results have to dedicate to local development.
21 STRATEGIES OF MONDRAGON Internationalization. Innovation. Intercooperation. Re-investment of 90% of profits. Participation: Management Results (profits and losses). Ownership Transparency in all the companies. Cooperative Education and Technical training. Leadership of Arizmendiarrieta and founders. Adopting our own Management Corporate Model. Creation of infrastructures: Educative (University and schools), own Cooperative Bank, own Healthcare and mutual system, R+D Centres. Creation of intercooperative investment funds.
22 STRATEGIES OF MONDRAGON STRATEGIC PLAN More internationalization. More innovation. More inter-cooperation between cooperatives. Ideal-best size of companies (best dimension to compite). More cooperative commitment.
23 INTERNATIONALIZATION OF MONDRAGON First international sales in In % were international sales in 150 countries. - We have 125 subsidiaries overseas with employees Strategic Plan 75% international sales Strategic Plan 80% international sales.
24 History of the MONDRAGON Cooperative Experience 1941 Father Arizmendiarrieta arrives in Mondragon Arizmendiarrieta sets up the Professional Polytechnic School (today the Engineering School of MONDRAGON UNIVERSITY) First co-op is created: ULGOR Caja Laboral (Bank + Entreprenurial Division) Lagun Aro (Own Social Welfare System) First co-operative Group (Ularco-Fagor) Alecop (Student working in a worker co-op) Ikerlan (First Research Centre) I Congress of co-ops: Creation of MONDRAGON Cooperative Group (GCM) III Congress: Creation of MONDRAGON Cooperative Corporation Creation of MONDRAGON UNIVERSITY.
25 On the global stage NATIONAL AND INTERNATIONAL PRESENCE 12,000 Employees in subsidiaries and international offices
26 MONDRAGON HUMANITY AT WORK
BACKGROUND = ,000 ( 14B,
1 MONDRAGON = Network of 260+ cooperative enterprises, subsidiaries and affiliates. 120 coops in MCC core. Employee-owned, one worker-one vote, involving nearly 100,000 workers 7th largest business group
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