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.
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 thirty years of co-operative experience. Their basic concepts are summarised below:
MONDRAGON Corporation is a business-based socioeconomic initiative with deep roots in the Basque Country, created for and by people and inspired by the Basic Principles of our Co-operative Experience. It is firmly committed to the environment, competitive improvement and customer satisfaction in order to generate wealth in society through business development and the creation of, preferably co-operative, employment, which:
- Is based on a firm commitment to solidarity and uses democratic methods for organisation and management.
- Fosters participation and the involvement of people in the management, profits and ownership of their companies, developing a shared project which unites social, business and personal progress.
- Fosters training and innovation through the development of human and technological skills, applying its own Management Model aimed at helping companies become market leaders and fostering Co-operation.
Values constitute an essential part of every business culture, since they provide a sense of moving in a common direction and provide all the members of the organisation with a series of guidelines regarding the behaviour and attitudes expected of them during their daily activities. The values it espouses define the basic nature of an organisation, create a common sense of identity, foster cohesion and help develop an individual management philosophy.
Corporate values should be known and shared by all those working in the company, so as to ensure that both their individual and collective behaviour complies with the general principles of the corporate beliefs.
Management Teams are responsible for communicating the corporate values and encouraging those within their sphere of influence to adopt and assimilate them. Members, on the other hand, are responsible for applying them at a practical level.
Being a corporate unit, MONDRAGON is responsible for unifying its basic behavioural norms. To this end, in addition to the basic values of the Co-operative Experience expressed in the Basic Principles and the Mission, it is also responsible for fostering its own set of Corporate Values.
Of the many values which enrich our Experience, during the next planning cycle we aim to continue focusing our attention on those which best characterise our organisation, as well as those which are considered important as a general guideline for behaviour.
|I. Co-operation - "Owners and protagonists"
|II. Participation - "Commitment to management"
|III. Social Responsibility - "Distribution of wealth based on solidarity"
|IV. Innovation - "Constant renewal"
Basic Corporate Objectives
The Basic Objectives encompass the key management elements or areas in which the MONDRAGON Corporation, both as a whole and through its different Business Areas, aims to make significant progress during the coming planning cycle.
The 5 Basic Objectives that were defined and approved for the three previous planning cycles are recommended for ratification in the new 2009-2012 planning cycles for following reasons:
- They have been assimilated at all organisation levels.
- Experience has shown that their relevance and significance is increasing.
- All strategic and operational planning procedures at all levels have been based around these five key management elements.
- With the aim of strengthening the management activities based around INNOVATION during the new 2009-2012 planning cycle, we propose that this area be included as a new Basic Corporate Objective.
- Furthermore, the inclusion of this area will serve to clarify the contents of the Basic Objective of Development, which up until now has encompassed both growth management and innovation and technological development.
|I. Customer focus
||V. Involvement in the Community
||VI. People in Co-operation
I. Customer focus
- Strategic and operational alignment with the customer.
We need “To experience the customer”, to have them constantly in mind at all levels of the organisation, and for them to really perceive the value we provide them with.
- Growth – Renewal
- Corporate synergies
The development of the businesses is essential to strengthening them in a sustained way. Development must be based on innovation and the promotion of new activities, in addition to growth Innovation.
- Innovation Management
- Technological Development
Innovation is the ability that is evident in the capacity to generate new things and significant changes. It involves adapting or adopting something new in business models, management models, technologies, products, services, processes, systems, organisation, brands, patents, etc., which is applicable and generates value for customers and the company.
A vital necessity for all companies, the ultimate measurement of their competitiveness, their internal efficiency and the performance of the resources invested in the activity.
V. Involvement in the Community
- Corporate Responsibility
- Social Transformation
The company is a social subject that takes on obligations with society that go beyond the creation of wealth. From this responsibility are derived ethical and moral requirements together with the commitment to contribute to progress and the wellbeing of the community in which it operates.
VI. People in Co-operation
- People development
- Co-operative Education
- People Participation in Subsidiaries
- Health and Safety at Work
The Co-operative Experience’s organisations are based on the committed and united participation of people. Our key difference in socio-business terms is co-operation.
The General Policies provide a guideline for the Corporation’s activities in areas of particular importance, and serve as a basis for developing the Strategic Plans.
They aim to fulfil the Basic Objectives through the application of specific guidelines oriented towards dealing with the competitive challenges of the future.