Porto, 27th January 2011Porto, 27th January 2011

Innovation as a driver for social entrepreneurship in

Mondragon Corporation

Innovation as a driver for social entrepreneurship in

Mondragon Corporation

27th December

2011

Wednesday

40min

• Background

• Values

• Principles

• Social entrepreneurship experience: The MONDRAGON case.

•Historical evolution

•Video

Main points

agenda

our structure …

- We are a research center specialised in organisational management.

- We belong to the structure of MONDRAGON University and MONDRAGON Corporation.

our process …

- Prospective: Learning Around the World.

- Research in management.- Generation of new knowledge.- Model representation/ Methodologies.- Transference to companies/

institutions/organizations/society.- Dissemination: conferences,

publications.

our research areas …

SOCIAL ECONOMYKNOWLEDGE MANAGEMENT

SOCIAL INNOVATION

MANAGEMENT INNOVATION

Entrepreneurship Estrategy

OrganizationParticipatory democracy

Social capitalBUSINESS TRANSFORMATION

OPEN INNOVATIONNetworks

Economic analysis

WEB 2.0/SOCIAL

MANAGEMENT SYSTEMSTERRITORIAL DEVELOPMENT

Competitiveness improvementCreativityCOOPERATIVISM

PEOPLE’S PARTICIPATION

Networks

New ways of management

PEOPLE AND TEAMSNew ideas

Management models

Marketing

we work with …

- Industrial and service companies: Applied Research in Business Management.

- Institutions/Business Associations/ Public Administration /Other Organizations:

Applied Research in Territorial/Social Development.

Objectifs

MIK in MONDRAGON Corporation

Finantial Area Distribution AreaIndustrial Area

•Research Centres & Training/Education

Values of Mondragon•Cooperation•Participation •Social Responsability•Innovation

Values of Mondragon•Cooperation•Participation •Social Responsability•Innovation

•1st industrial group in the Basque Country and the 7 th in Spain•Composed by 264 enterprises and entities•Reference in the world regarding the cooperative experience•Turnover 15.056 millions €, 103.731 persons

www.mondragoncorporation.com

Basque Country 49%

Spain39%

International 12%

Employment distribution

MIK

Management Reseach Centre

social entrepreneur …

J.M. Arizmendiarreta (1915 – 1976)

ValuesValues

PrinciplesPrinciples

Social entrepreneur and visionary Created the first cooperative in

1953

Social entrepreneur and visionary Created the first cooperative in

1953

9

4 Corporate Values

10

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.

CORPORATE VALUES

11

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

12

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

13

Innovation 4/4

“Constant Renewal”

Is a necessary condition for business and social progress. Systematic search for new options is a permanent condition.

CORPORATE VALUES

social entrepreneur …

ValuesValues

PrinciplesPrinciples

Social entrepreneur and visionary Created the first cooperative in 1953

Social entrepreneur and visionary Created the first cooperative in 1953

J.M. Arizmendiarreta (1915 – 1976)

15

10 Basic Principles

16

Open Admission 1/10

All men and women professionally capable can become a member of the corporation.

BASIC PRINCIPLES

17

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

18

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

19

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

20

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

21

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

22

Intercooperation 7/10

Engagement with potential synergies derived from cooperation with other companies.

BASIC PRINCIPLES

23

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

24

Universality 9/10

Solidarity with all those working for social democracy, sharing the objectives of peace, justice and development.

BASIC PRINCIPLES

25

Education 10/10

Continuously investing in human and economic resources for co-operative and vocational training.

BASIC PRINCIPLES