Mikel_Lezamiz_-_Presentation_MONDRAGON-2014

1. MONDRAGON
HUMANITY AT WORK

2. MONDRAGON
HUMANITY AT WORK

3. COOPERATIVES WITHIN MONDRAGON
 Industrial 76
 Credit 1
 Consumer 1
 Agricultural 4
 Education 8
 Research and Development 15
 Services (Consulting,
Enginearing, Food, Insurance, …) 5
 Total cooperatives 110

4. Our organisation

5. Intercooperation
Cooperativa
Coop
Cooperativa
Cooperativa
Cooperativa
Cooperativa
Cooperativa
Cooperativa
Coop Coop
Coop
Coop
Coop
Coop
Welfare/ Health
mutual
Educational Financial
R+D Centres

6. 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 ccrreeaattee wweeaalltthh
wwiitthhiinn ssoocciieettyy tthhrroouugghh eennttrreepprreenneeuurriiaall
ddeevveellooppmmeenntt aanndd jjoobb ccrreeaattiioonn,, pprreeffeerraabbllyy
mmeemmbbeerrsshhiipp--jjoobbss iinn ccoo--ooppeerraattiivveess..

7. MISSION (II)
Based on a commiment to Solidarity.
Using democratic methods (one person, one
vote).
Encourages the participation and integration in:
 Management.
 Profits.
 Ownership.
Harmonishing projects aimed at social, business
and personal development.

8. 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
The keys

9. corporate BASIC
PRINCIPLES
The keys
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

10. Structure of the power

11. Basic Structure within a Cooperative
Department Director
A
Department Director
B
Management Council
Department Director
C
Department Director
D
Department Director
E
Supreme
Board General Assembly
Board of
Directors Governing Council
Executive
Board General Manager
Advising
Board
Social
Council
Watchdog
Commitee
Accounting
Auditors

12. Membership Rules to enter in
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 (15.000 euros in 2014).
Solidarity in compensation .
Reporting of data to MONDRAGON Headquarters.
Not internal competition between co-ops within MONDRAGON

13. INNOVATION IN
MONDRAGON
564 family patents
160 M euro invested in R+D in 2012
15 Research and Development
Centers
2.096 people in Research Centers
Participating in 91 R+D projects in
Europe
19% sales with new products

14. 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)

15. Conventional Corporation VS MONDRAGON
Cooperatives
(autonomous)
Sectorial
Divisions
MONDRAGON
Authority
Conventional
Corporations
Conviction
Values

16. 07 On the global stage
14,000
Employees in
subsidiaries and
international offices
NATIONAL AND INTERNATIONAL
PRESENCE

17. Expansion model of MONDRAGON
(Strategic Plan 2005-2008)
Information transparency.
Same style of Management overseas.
30% of property should belongs to worker.
5% of results have to dedicate to local
development.

18. Prioritising people & employment
DISTRIBUTION OF EMPLOYMENT BY AREAS
INDUSTRY RETAIL
KNOWLEDGE FINANCE
05
80.321
jobs in average
in 2012
46,0%
49,6%
1,3% 3,1%
46,0%
49,6%
1,3% 3,1%

19. With a
consolpidraotjeedct
Data in millions of €
National
INDUSTRY AREA
TOTAL SALES €5,812 millions
International
06
1.808
4.004
4.500
4.000
3.500
3.000
2.500
2.000
1.500
1.000
500
0

20. With a
consolpidraotjeedct
Data in millions of €
Lagun-Aro’s
Funds
Laboral Kutxa’s
Client Resources
06
4.876
18.636
20.000
18.000
16.000
14.000
12.000
10.000
8.000
6.000
4.000
2.000
0
Seguros Lagun Aro
362.000 customers

21. With a
consolpidraotjeedct
Total Sales
RETAIL AREA
8,040 TOTAL SALES:
€7,092 millions
Data in millions of €
06
7.092
8.000
7.000
6.000
5.000
4.000
3.000
2.000
1.000
0

22. Historiy of the MONDRAGON
Cooperative Experience
 1941 Father Arizmendiarrieta arrives in Mondragon.
 1943 Arizmediarrieta sets up the Professional Polytechnic School
(today the Engineering School of MONDRAGON UNIVERSITY).
 1956 First co-op is created: ULGOR (today FAGOR).
 1959 Caja Laboral (Bank+Entreprenurial Division).
 1959 Lagun Aro (Own Social Welfare System).
 1964 First co-operative Group (Ularco-Fagor).
 1966 Alecop (Student working in a worker co-op).
 1974 Ikerlan (First Research Centre).
 1987 I Congress of co-ops: Creation of MONDRAGON Cooperative
Group (GCM).
 1991 III Congresss: Creation of MONDRAGON Cooperative
Corporation.
 1997 Creation of MONDRAGON UNIVERSITY.

23. Mikel Lezamiz
mlezamiz@mondragoncorporation.com
www.mondragon-corporation.com