‘Can a Leopard Change Its Spots?’ How the Established Model of the Mondragon Co-operatives Struggles to Adapt to a Changing World

Abstract

Despite theories of degeneration and fears that the passing of time may corrupt the original principles of co-operation that are the very definition of a co-operative business, and the idea that co-operative democracy in governance declines as a result of growth in numbers of members of a co-operative, the co-operatives of Mondragon appear to both sustain themselves and continue to grow in different ways. Cornforth (1995) argued against theories of degeneration through a study of worker co-operatives in the UK, but the case of Mondragon is even more challenging in terms of size and longevity. Many predicted the beginning of the end for the Mondragon co-operatives after the fall into bankruptcy of the largest and the founding co-operative, Fagor Electrodomesticos, in 2013. Instead, the Mondragon Corporation is alive and well. This chapter asks what lessons can be learnt about the development and sustainability of co-operatives which are relevant for future planning and adaptations to new environments.