Monthly payments made to members in return for their services, as an advance on the co-operative profits. The advance is divided into the ‘consumer advance’, paid directly to the members, and the ‘welfare advance’, which is paid into the social support fund.
Upon joining the co-operative, members make a contribution to the share capital. The General Assembly establishes the corresponding figure on an annual basis.
Central Inter-cooperation Fund.
Used for funding business initiatives which, due to their size or risk factor, are beyond the means of the co-operatives or groups involved.
Central Co-operative Dividends
Amount received by each member as his/her share of the net annual profits. This figure increases the amount of capital each member has invested in the co-operative.
Distribution of Net Surplus and Losses.
Once the profit and loss statement has been prepared and all taxes have been deducted, the net surplus or loss is divided into three sections earmarked for the social funds, the reserve fund and the dividends (or negative dividends).
Associations constituted within the framework of MONDRAGON between co-operatives operating in the same area, with the aim of taking advantage of certain common services and economies of scale. They co-ordinate the management of their respective co-operatives in accordance with their own individual strategic framework.
FSC. Corporate Solidarity Fund.
Its aim is to provide economic support for the co-operatives in the Industry Area.
The supreme body of the co-operative and a vehicle for expressing the social will of the members.
It is responsable for drawing up and applying corporate strategies and objectives. It coordinates the policies pursued by the differentDivisions and Co-operatives.
This is the body which represents and governs the co-operative. Its members are elected by the General Assembly.
The executive management team of the co-operative, appointed by the Governing Council.
The body which co-ordinates the functions of the management team and advises the Governing Council. It is made up by the general manager and the executive members.
MONDRAGON Co-operative Congress.
The aim of the Congress is to establish the strategic criteria by which the Corporation is to be administered, through the planning and co-ordination of its business units. It is comprised by 650 members delegated by the various co-operatives.
Auditors appointed to ensure correct compliance with accounting principles and any other areas which require their consideration.
Pooling of Profits.
All the co-operatives earmark part of their net surplus for redistribution, as a genuine expression of solidarity within the framework of MONDRAGON.
The body which represents the members to the co-operative’s internal institutions. The number of members on the board is established in accordance with the total number of members in the co-operative.
governed by delegation from the Cooperative Congress. Its basic function is to promote and control the implementing of policies and decisions adopted by the Congress, by monitoring the evolution of MONDRAGON on a permanent basis.
The result of an association of grass roots co-operatives, their aim is to support the co-operatives in specific areas of management. Known also as ‘co-operative co-operatives’, they also have their own members (their own workforce) and encompass the following fields: financial, welfare, training and research.
Members must complete a trial period in their jobs, generally lasting between six months and one year, after which, as co-operative members, they are free either to confirm or reject the offer of permanent membership.
Based on a system of shared management, the co-operatives constitute the basic elements of MONDRAGON. Each retains its own organisational structure, individual legal personality and independence.
Variable Share Capital.
The share capital may vary for a number of different reasons including: revaluation of returns (profits), interest on contributions or payments made as a result of members leaving. This is a common characteristic of co-operative legislation.