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The Mondragon Cooperative Corporation, or MCC, is often reflected the most successful example of worker-owned enterprise in the world. Taking its name from the small town in the Basque Country of Spain where it was founded, the MCC's reach now spreads across Spain, Europe and all over the world. Its highly united network of cooperative businesses competes successfully with conservative corporate challengers both locally and worldwide. The corporation was divided into four areas which are industry, finance, knowledge and distribution. What started as one firm and roughly 25 people in 1956 is now a major international business with a work force of over 34,000, employed in some 100 worker-owned enterprises and affiliated organizations, all of which are integrated into the Mondragon Cooperative Corporation (MCC). In 1997, MCC had total sales of approximately $5 billion, exported nearly half its industrial sales, and its Financial Group (bank and social security/pension fund) had nearly $7.5 billion of various financial assets under management. MCC firms are the leading producer of domestic appliances and machine tools in Spain, the largest domestically-based supermarket chain in the country, and the third largest supplier of automotive components in Europe. Among its other products and services, one finds automated manufacturing cells, satellite dishes, luxury buses, industrial presses, large metal structures, engineering consulting, and software development, to name a few. The success rate at Mondragon is so high that usually when new business are setup by entrepreneurs seventy five percent of them tend to fail to succeed in the market in the first five years. But none of them failed at Mondragon.
Ethical companies do the right thing and concern themselves with the long term. This may damage financial performance in the short term.
General Electric well known as GE around the world. It's a traditional capitalist company today.
It has license of 130 million customers worldwide. GE is a specialized technology, media and financial services company the focuses on solving some of the world's difficult issues and dedicated in creating products that make life better. GE has been one of the world's most innovative companies for 130 years and remains the only company originally listed on the Dow Jones Industrial Index in 1896 that still trades today (NYSE: GE). GE serves customers in more than 100 countries and employs more than 300,000 people worldwide. GE Money has provided personal financial services for nearly 80 years. During the turbulent times of the Great Dejection, GE created the GE Credit Corporation (1932). By offering financing solutions, GE helped people buy the GE Appliances they needed to keep their families safe, healthy and comfortable. (http://www.gemoney.co.nz/en/about_ge_money_nz/index.html)
In a Capitalist company the main aim will be to maximize profit which will result in make the most of profit for its shareholders wealth which makes each owner as wealthy as possible.
Compare and Contrast:-
Mondragon Corporation is a democratic kind of corporation which mainly deals with the establishment of a superior life and permits them access to the products that are important for them to achieve a reasonable which shows us that company doesn't follow any elimination theories.
But GE is Traditional Capitalistic Company which mainly deals in making profits the firm rather than giving access to the products that are necessary for them to attain a reasonable life.
MC is a socialistic company that does not neglect its stake holders as they give lot of importance as they are customer focused in their objectives, a strong social element but without neglecting business excellence. The Co-operative are owned by their worker-members and power is based on the principle of one-person, one vote; with this method we can say that the company doesn't have ego in taking care of the people.
Mondragon Corporation also started foundation named Mundukide Foundation in 1999 as result of a process of reflection carried out both within Mondragon Co-operative movement and Mondragon Corporation, with the aim to update and simulating the principles of solidarity upon which Co-operatives rests.
Inter-cooperation:Â Involvement in the search for potential synergies derived from the common environment.
Social transformation:Â Through the majority pooling of profits, the creation of new co-operative jobs and support for community development initiatives.
Universality:Â Solidarity with all those working in favor of social democracy, sharing the objectives of peace, justice and development.
In order to fulfill its mission, the Mundukide Foundation aims to ensure the direct involvement of a number of different Basque co-operatives, from both the academic sector and business world (i.e. universities). The idea is to create working links not only in the southern hemisphere, but above all between the co-operative entities themselves: university students, researchers, co-operative technicians, voluntary workers and co-operating companies, etc. Our plan is to aid the various processes and by getting on long-term commitments and launching a channel for mutual learning which will prove beneficial to all those involved, from both the northern and southern hemispheres, and which will pave the way for sustainable, endogenous and fair development.
GE is a kind of capitalistic type of organisation. The main motive of the organisation is to make money & to do business. Though the company gives significance importance to customer like, GE New Zealand has given its support towards victims of Canterbury earthquake by donating NZD 100,000 to Red Cross, but at times it can't give out its profit to the customers if the profits go to low. This reflects the company's egoistic behaviour in terms of sharing its profits.
Micro Finance a kind of provision of finance to small business or small scale entrepreneurs. Usually when providing micro-finance the rate of interest of the loan is very much less than the normal rate of interest which finance companies charge.
Since it began, the Mondragon Co-operative Experience has stood out for its commitment to solidarity and its social responsibility to the community. This includes, first and foremost, its significant contribution to wellbeing and quality of life, through the generation of employment and business activity, together with the annual investment ofÂ 10% of its co-operatives' profitsÂ in projects of a social nature.Â
This percentage is channeled through the Co-operative Education and Promotion Fund (FEPC), which totaled â‚¬22.2m in 2009. Over the last five years (2005-2009), this investment in projects of a social nature has accounted for â‚¬164m.
The â‚¬22.2m in 2009 was used to back training and educational development projects at theÂ University of MondragonÂ and vocational training centers like theÂ Txorierri Polytechnic,Â Lea Artibai IkastetxeaÂ and theÂ Goierri Vocational Training College; as well as bodies linked to research.Â
This solidarity fund was also used to promote the Basque language and to back many cultural activities in local towns and cities; help was provided for specific development projects in the Third World and support was given to NGOs, especiallyÂ Mundukide, an initiative promoted with the backing of MONDRAGON to foster community-based social activities in disadvantaged countries.Â
Likewise, the money from the FEPC has been used to promote many healthcare and sports activities, subsidizing programs and bodies engaged in social integration, help for the handicapped, reinsertion of caring for the elderly, drug addicts, etc.Â
GE on the other side since it is a capitalistic corporation can support in micro finance the customers but it is not as flexible as the socialistic corporation such as Mondragon. Even though it provides micro financing charges, the customers with interest more than what the MC takes.
All these play an important role in Determine the effect of micro financing and civil society, business and government.
GE in Advertising and Growth:-
Consider first what the company really is. The curse and strength of the company looks a lot like the economy .For over 125 years GE has been a managerial leader, establishing its strength with the disciplined oversight of some of the world's most effective business people. It was well known for manufacturing locomotives, light bulbs, jet engines have shrunk as a proportion of the total.
The imagination that inspires their products can also be found in advertising. By demonstrating the many ways GE is making a difference in our world with some exciting campaigns.
Ronald reogan served as host of Ge Theater. He also spent months each year travelling to get Ge factories, inspiring the Ge employees with optimism and belief in innovation and entrepreneurial spirit.
The advantage of Ge is speed, cost, quality in action.as I already mentioned that many of the products were manufactured, in aviation advantage was delivering the world class engineering and delivering fast service. If it comes to lighting reducing cycle time, increasing responsive and optimizing prices. The reality is that for years, about half of GE's prodigious profits have come from general electric capital,
A 100% owned affiliate that files its own report with the SEC.
Role employees and shareholders in GE:-
The strategy that GE is going to put into play involves the selling of a covered call, and a naked put. A good time to put the following strategy into play is when a stock is trading in the overbought ranges, and the shareholders would not mind banking some of their gains. The covered call gives you the opportunity to close your position out at a predetermined price and also walk away with the premium you received when you sold the call. The premium also serves as a hedge, as it provides you with some downside protection.
The naked put provides you with the option of getting into the stock at a lower price. You usually sell a naked put if you are bullish on the stock, but would like to own the shares at a lower price. With the put you either get in at a price of your choosing, or you at least get paid for trying to. In a way, you are getting put to put in a limit order.
In order to put both parts of this strategy into play you will have to own shares in General Electric Company (GE) as part of the strategy entails the selling of covered calls. However, if you do not own shares in the company and would not mind owning them at a lower price you can put the second part of the strategy into play. In our opinion, the stock is rather overbought, and it would not make sense to purchase shares right now just to be able to sell covered calls. Generally speaking, selling covered calls is a good strategy to employ on dividend-paying stocks that are trading in the overbought ranges. If the shares are called away, you can always redeploy the money into a wide range of great dividend-paying stocks.
What is 'Covered Call':-
An options strategy whereby an investor holds a long position in an asset and writes (sells) call options on that same asset in an attempt to generate increased income from the asset. This is often employed when an investor has a short-term neutral view on the asset and for this reason holds the asset long and simultaneously has a short position via the option to generate income from the option premium.
Benefits of selling covered calls
Downside protection and reduction in Portfolio volatility
Predetermined rate of Return
Converts a common stock into a dividend paying stock
Investors looking for more details on the benefits of selling covered can read our piece on the "Benefits of a Covered Writes Strategy".
Rewards and Recognition:-
GE endeavors to provide competitive employee welfares packages in the regions and industries in which they have a presence. The wide range of employee retirement, services, health and other benefit plans are intended to help eligible employees make the best decisions for their family.
GE deals with advanced programs to assistance the qualified employees gain more value from their healthcare reimbursements. The Health Ahead, GE has additional faithful to improve the health of their employees and their families by making a 'culture of health' which will carry onsite and on-line programs like education, tools and services. GE also developed a global, industry-leading site certification program that will recognize excellence in worksite health.
Confidence levels were high that the benefits programs offered to employees match 'GE' reputation as a world class employer.
Leadership and Learning:-
GE trusts in emerging the talent of new employees with programs designed to give in-depth experience and build skills that are crucial to long-term achievement. GE tradition is to build continuous learning, which is why the employees invest more than $1 billion annually in preparation and tutoring offerings. In addition to the GE Global Learning Program, employees can take advantage of tuition reimbursement benefits to help improve their skills, grow their career, or get a loan to help pay for their family's higher education.
What made the Mondragon Corporation sustainable.
A company to leverage awareness on sustainability in home town.
Facilitate company's transformation process to become sustainable.
Develop and design new sustainable production industries through eco design.
Mondragon believe in achieving the next level of smart, ecologically responsible, healthy and vibrant buildings and community developments and believe in developments that put human health, community building, education and learning, resource efficiency and responsible community economic development principles at their cores. These passions inform our highly integrated, holistic approach to helping our clients and the communities we work with achieve valuable, meaningful and sustainable human habitats.
SSG pioneered the Integrated Design Process in our LEED projects. Right from the very start of each project, all design and construction team members are active players in identifying sustainable opportunities and strategies. SSG acts as a LEED coach to the team, ensuring all members know their responsibilities in delivering an uncompromising, highly sustainable project.
Manufacturing Sustainability - Beyond "Green"
Balancing the needs of diverse stakeholders can seem impossible - regulators (and our own sense of stewardship) demand reduced impact on our environment; shareholders require that we protect their investment; and customers won't accept reduced quality or increased costs. Individual initiatives seem to offer a path to improvement on a specific front - energy reduction, water optimization, or emission/effluent reductions - but understanding whether all other priorities are balanced is difficult at best.
Based on our own experience as a GE business - with aggressive goals for reducing energy and water consumption - we know that for gains to be sustainable, they must be led and supported by an information strategy. Intelligent Platforms automation and software are used in both utility and industrial infrastructure to deliver the precise control needed to optimize energy and water usage - as well as the data needed to understand the operational factors that can drive consumption above target.
The Finance Capital industry is comparatively young, compared to industries such as Banking and trading sectors GE Money is a top player in this sector and has risen fast, like the industry itself. Such a growth presents challenges and the company's approach to ethics guides its constant growth. Ethics are central to the company's development. They guide staff through change.
From the above compare and contrast between Mondragon Corp. and GE Corp. with regards to the ethical outcome on treatment with its stakeholders can be concluded that both the companies follow business ethics as it is very important for each and every business in today's global world. Even. GE Corp. is now not only a traditional capitalistic firm's but also thinks about the betterment of the future and works towards the interest of the stakeholders.