Internal Structure

Structure of a Cooperative Coorporation

Worker cooperatives may have a wide variety of internal structures. Many co-ops use a hierarchical structure similar to that of a conventional business, with a board of directors and various grades of manager, with the difference that the board of directors is elected. Some co-ops, however, use a structure based on activist collectives and civic organizations, with all members allowed and expected to play a managerial role - and sometimes using consensus decision-making.

MCC Basic Structure

When we look at the Internal Structure of the Mondragon we must first take the business culture of the Mondragon Corportion. The business culture is what defines a company’s outlook, the way it responds to management opportunities and problems and the way in which it adapts to internal and external changes and requirements, which are internalised in the form of collective beliefs and trends and are transmitted and taught to new members as a cohesive way of thinking, living and acting.

These basic beliefs, with their corresponding commitments and trends, form the business culture that, under the auspices of the company leadership, defines the target identity and develops internal mechanisms for dealing with the challenges of management in an individual way.

The business culture is expressed in the contents of the mission, in the values, the vision, the feeling of belonging, the flexible ability to agree upon common goals and the comprehensive management of the company, including its strategic objectives and assessment criteria for measuring results.

The shared language and individual conceptual contents of the culture of each particular business or organisation are vital elements for defining the limits of the group identity and establishing the rules of play for everyone involved.

From a business point of view, the MCC’s activities are divided into three areas -Financial, Industrial and Distribution- which function independently within a global strategy co-ordinated by the Corporate Centre.

The Financial Area includes activities such as banking, social welfare and insurance. The Industrial Area comprises 12 Divisions dedicated to the production of goods and services. The Distribution Area is made up of various commercial distribution and agricultural-food enterprises. There are also a number of Research, Vocational Training and Teaching centres, including a University which has 4,000 students.

The individual co-operatives constitute the basic level of the MCC’s organisational structure, with the General Assembly acting as the supreme body for the expression of the will of the members and the sovereignty of the co-operative and the Governing Council acting as the ultimate body for management and representation, being responsible for appointing the Managing Director.

The eight Vice Presidents, along with the three Heads of Department at the Corporate Centre, together constitute the General Council, which is chaired by a President. The General Council is responsible for drawing up, co-ordinating and applying corporate strategies and objectives.

The Standing Committee of the Co-operative Congress is the governing body responsible for giving impetus to and controlling the carrying out of the policies and agreements adopted by the Congress, continually monitoring the MCC’s business performance and the management of the Presidency of the General Council. The Committee consists of 20 elected members representing the 14 Divisions of the Corporation.

The Co-operative Congress is the supreme body of the Mondragón Corporación Cooperativa, in terms of sovereignty and representation, equivalent to its main General Assembly. It is comprised by 650 delegates who represent all member co-operatives, and its decisions are binding on all of them.

(Taken from Monadragon Web Site)

Corporate Structure

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