MONDRAGONHUMANITY AT WORK

MONDRAGONHUMANITY AT WORK

Industrial 76

Credit 1

Consumer 1

Agricultural 4

Education 8

Research and Development 15

Services (Consulting,Enginearing, Food, Insurance, …) 5

Total cooperatives 110

COOPERATIVES WITHIN MONDRAGON

Our organisation

CoopCoop

Coop

CoopCoop

Coop

Coop

Educational

Financial

Welfare/Healthmutual

R+D Centres

Intercooperation

MISSION

Mondragón Co-operative Corporation (MCC) is

an entrepreneurial socioeconomic entity with

deep cultural roots in the Basque Country

(Spain), 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.

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.

MISSION (II)

corporate values

CO-OPERATIONOwners and protagonists

PARTICIPATIONCommitment to management

SOCIAL

RESPONSIBILITYDistribution of wealth based on solidarity,

and involvement in the community

INNOVATIONConstant renewal

The keys

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

POWERFactor of

production(Tool, Resource)

ConventionalCompanies(Sociedades Anónimas)

Capital Labour

Cooperatives Labour Capital

Structure of the power

Department DirectorA

Department DirectorB

Department DirectorC

Department DirectorD

Management Council

Department DirectorE

SupremeBoard

General Assembly

Board ofDirectors

Governing Council

ExecutiveBoard

General Manager

AdvisingBoard

SocialCouncil

WatchdogCommitee

AccountingAuditors

Basic Structure within a Cooperative

. Relocation of worker-members among cooperatives.

Restructuring results (from the gross profits).. Within the sectorial groups (>15%-<40%). Within corporative funds in MONDRAGON (InvestmentFund 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 2013).

Solidarity in compensation .

Reporting of data to MONDRAGON Headquarters.

Not internal competition between co-ops withinMONDRAGON

Membership Rules to enter in MONDRAGON

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

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)

Cooperatives(autonomous)

MONDRAGON

Sectorial Divisions

ConventionalCorporations

Conventional Corporation VS MONDRAGON

Authority

Conviction

Values

14,000Employees in subsidiaries and international offices

NATIONAL AND INTERNATIONAL PRESENCE

On the global stage07

Information transparency.

Same style of Management overseas.

30% of property should belongs to worker.

5% of results have to dedicate to local

development.

Expansion model of MONDRAGON

Prioritisingpeople & employment

DISTRIBUTION OF EMPLOYMENT BY AREAS

INDUSTRYRETAIL

KNOWLEDGE FINANCE

05

80.321jobs in average

in 2012

46,0%49,6%

3,1%1,3%

46,0%49,6%

3,1%1,3%

Data in millions of €

National

INDUSTRY AREATOTAL SALES

€5,812 millions

International

With a consolidatedproject

06

1.808

4.004

0

500

1.000

1.500

2.000

2.500

3.000

3.500

4.000

4.500

Data in millions of €

Lagun-Aro’sFunds

Laboral Kutxa’sClient Resources

With a consolidatedproject

06

4.876

18.636

0

2.000

4.000

6.000

8.000

10.000

12.000

14.000

16.000

18.000

20.000

Seguros Lagun Aro

362.000 customers

Total Sales

RETAIL AREATOTAL SALES:8,040

With a consolidatedproject

€7,092 millions

Data in millions of €

06

7.092

0

1.000

2.000

3.000

4.000

5.000

6.000

7.000

8.000

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.

Historiy of the MONDRAGON Cooperative Experience

Lander Belokilbeloki@mondragon.edu

www.mondragon-corporation.com