Abstract

The Mondragon Corporation, a group of cooperatives, is a thriving example of how cooperatives can succeed. The authors describe six features of the corporation and five 'successful cooperative actions' that they consider to be crucial in explaining its accomplishments. Both the specific features and the successful actions are contrasted with those of standard capitalist companies, to show how this case is unique in the field of corporate organization and management. Through a combination of democratic principles, the values of solidarity, and strong competitiveness, Mondragon has simultaneously achieved both efficiency and equity and has become an alternative to the organizational and governance models of traditional capitalist firms.