Good afternoon everybody. First of all I would like to thank the university of Porto for inviting us to this conference and to all those present for being here today. Our presentation will be focused in the MONDRAGON CORPORATION as an example of social entrepreneurship.
Today I’m gonna talk you about the innovative social entrepreneurial experience of the MONDRAGON group. But before doing that, I’ll explain you briefely who we are and what we do. Then, the values and principles that has been the framework of MONDRAGON when creating new business. And finally, my collegue Josune is going to present you the historial evolution of the entrepreneurship in Mondragon since 1956, when the first cooperative was created.
Our process starts by promoting prospective missions around the world and by doing research in management theories. The aim of that is to create new knowledge and therefore, experiment with new approaches and develop methodologies. The final step of our value chain comes with the transference of these methods to companies and with the dissemination of our results in an international level.
Turning again to the MONDRAGON Corporation, MIK is one of the support companies that provides service to the rest of the structure, which is divided intro three areas: financial, industrial and distribution.
The cooperative movement of Mondragon was funded by J.M Arizmendiarrieta in 1953. The framework for social entrepreneurship are the cooperative values and principles that were established by him at that time and that, still today are the key to understand entrepreneurship in MONDRAGON. Well gonna have a look to the values.
Coming back again to Arizmendiarrieta, he also established some basic principles to run the cooperatives.
The Basic Principles of the MONDRAGON Co-operative Experience, which were approved during our first Co-operative Congress held in October 1987, encompass a series of ideas formed in accordance with over forty years of co-operative experience. Their basic concepts are summarised below:
Porto, 27th January 2011 Innovation as a driver for social entrepreneurship in Mondragon Corporation
our structure … <ul><li>We are a research center specialised in organisational management. </li></ul><ul><li>We belong to the structure of MONDRAGON University and MONDRAGON Corporation. </li></ul>
our process … <ul><li>Prospective: </li></ul><ul><li>Learning Around the World . </li></ul><ul><li>Research in management. </li></ul><ul><li>Generation of new knowledge. </li></ul><ul><li>Model representation/ Methodologies. </li></ul><ul><li>Transference to companies/ institutions/organizations/society. </li></ul><ul><li>Dissemination: conferences, publications. </li></ul>
our research areas … SOCIAL ECONOMY KNOWLEDGE MANAGEMENT SOCIAL INNOVATION MANAGEMENT INNOVATION Entrepreneurship Estrategy Organization Participatory democracy Social capital BUSINESS TRANSFORMATION OPEN INNOVATION Networks Economic analysis WEB 2.0/SOCIAL MANAGEMENT SYSTEMS TERRITORIAL DEVELOPMENT Competitiveness improvement Creativity COOPERATIVISM PEOPLE’S PARTICIPATION Networks New ways of management PEOPLE AND TEAMS New ideas Management models Marketing
we work with … <ul><li>Industrial and service companies: </li></ul><ul><li>Applied Research in Business Management . </li></ul><ul><li>Institutions/Business Associations/ Public Administration /Other Organizations: </li></ul><ul><li>Applied Research in Territorial/Social Development . </li></ul>
Objectifs MIK in MONDRAGON Corporation <ul><li>Values of Mondragon </li></ul><ul><li>Cooperation </li></ul><ul><li>Participation </li></ul><ul><li>Social Responsability </li></ul><ul><li>Innovation </li></ul><ul><li>1 st industrial group in the Basque Country and the 7 th in Spain </li></ul><ul><li>Composed by 264 enterprises and entities </li></ul><ul><li>Reference in the world regarding the cooperative experience </li></ul><ul><li>Turnover 15.056 millions €, 103.731 persons </li></ul><ul><li>www.mondragoncorporation.com </li></ul>Basque Country 49% Spain39% International 12% Employment distribution MIK Management Reseach Centre Finantial Area Distribution Area Industrial Area <ul><li>Research Centres & Training/Education </li></ul>
social entrepreneur … J.M. Arizmendiarreta (1915 – 1976) Values Principles Social entrepreneur and visionary Created the first cooperative in 1953
CORPORATE VALUES Co-operation 1/4 “ Workers are owners and protagonists” Property of the companies is of the associate-workers. The performance of the cooperative depends on and affects them directly and personally .
Participation 2/4 “ Commitment to Management” Is the essence of MCC’s socio-business model. Members take part in three areas: capital, profits and management . CORPORATE VALUES
CORPORATE VALUES Social Responsibility 3/4 “ Engagement with the community. Distribution of wealth based on solidarity.” Work is not only a mean of obtaining income. It is a source for satisfying the needs of personal and collective development, meaning that personal aims are compatible with those of the company, and those of the company are compatible with the social needs of the community .
CORPORATE VALUES Innovation 4/4 “ Constant Renewal” Is a necessary condition for business and social progress. Systematic search for new options is a permanent condition.
social entrepreneur … Values Principles Social entrepreneur and visionary Created the first cooperative in 1953 J.M. Arizmendiarreta (1915 – 1976)
BASIC PRINCIPLES Open Admission 1/10 All men and women professionally capable can become a member of the corporation.
BASIC PRINCIPLES Democratic Organisation 2 /10 Equality of the work-force. Every member of the cooperative has the same right to vote in the General Assembly. That is to say, “one member, one vote”.
BASIC PRINCIPLES Sovereignty of Labour 3/10 Wealth is distributed among the members in proportion to their labour and not on the basis of their holding in Share Capital.
BASIC PRINCIPLES Instrumental and Subordinate Nature of Capital 4/10 Capital is an instrument, subordinate to labour. It is necessary for business development, but the priority is work creation. There is a firm commitment to the creation of new jobs.
BASIC PRINCIPLES Participatory Management 5/10 Implies the progressive development of self-management. Workers of the cooperative are encouraged to participate in the business management through different channels.
BASIC PRINCIPLES Payment Solidarity 6/10 The payment framework to the Corporation is based on the principle of solidarity and according to the possibilities of each cooperative.
BASIC PRINCIPLES Intercooperation 7/10 Engagement with potential synergies derived from cooperation with other companies .
BASIC PRINCIPLES Social Transformation 8/10 By means of reinvesting most of the profits, creating new co-operative jobs and providing support for community development initiatives .
BASIC PRINCIPLES Universality 9/10 Solidarity with all those working for social democracy, sharing the objectives of peace, justice and development .
BASIC PRINCIPLES Education 10/10 Continuously investing in human and economic resources for co-operative and vocational training .