Ernst & Young highlights MONDRAGON's cooperative model

In a recent investigation, Ernst & Young (EY), through his New Economy Unit, points out the MONDRAGON Corporation as an example of organization that promotes social transformation and wealth creation through collective property and democratic collaboration. The report identifies key aspects defining the MONDRAGON model, such as democratic governance, participatory management and wage equity.

These principles allow each employee to become a partner after a probationary period, with the right to receive part of the company’s profits (or losses) and to vote on the most important decisions, from strategy to wage policies. The structure of "one person, one vote" ensures that decisions benefit all workers and the community, rather than being directed exclusively towards external shareholders.

“EY also highlights the equal pay scale of 1:6 applied by MONDRAGON’s cooperatives, limiting the wage gap and promoting social cohesion”

MONDRAGON helps reduce inequality

EY also highlights the equal pay scale of 1:6 applied by MONDRAGON cooperatives, limiting the difference between wages. This approach helps to reduce income inequality and promote social cohesion among its members, becoming a viable model for the creation of resilient and socially responsible companies.

The EY document underlines how the MONDRAGON model, although it presents some challenges, such as the possible loss of agility in putting many decisions to the vote, demonstrates the viability of cooperatives as a sustainable and people-centred alternative. This reference places the Corporation as a prominent actor in the panorama of the "new economy" that pursues a more just and equitable future.

The mention of MONDRAGON in the EY report confirms the value of its cooperative model in promoting a regenerative economy, based on justice and the active participation of all its members.