February 20th marks the World Day of Social Justice, a date proclaimed by the United Nations General Assembly in 2007 to promote the eradication of poverty, full employment and decent work, gender equality, and access to social well-being and justice for all. This day invites reflection on how to place social justice at the center of international, national, and regional political agendas. However, beyond governmental policies, businesses and private initiatives play a crucial role in promoting social justice.
The Mondragón Corporation, originating from the Basque Country in Spain, is a prominent example of how a company can integrate social justice into its business model. Founded in 1956, in Mondragón workers are also partners and owners of the companies. This cooperative structure means that strategic decisions, such as international expansion, are made democratically, with active participation from the partners.
Unlike traditional relocation, where companies move their production to countries with cheaper labor, often to the detriment of local jobs, Mondragón adopts an internationalization strategy with a different approach. Its main objective is to open new markets and get closer to its customers, maintaining and strengthening jobs in its home community. This strategy ensures that the benefits of global expansion are distributed equitably, avoiding labor precariousness both in the country of origin and in international destinations.
It is important to highlight that, in Mondragón, if the partners decided to relocate production to take advantage of lower labor costs in other countries, they themselves would be affected, as they would lose their own jobs. Therefore, the cooperative structure and shared ownership encourage decisions that seek collective benefit and long-term sustainability, rather than short-term profits at the expense of workers.
As analyzed in this article published in the scientific journal Organization, Mondragón faces challenges in maintaining its cooperative values during internationalization processes. However, its model demonstrates that it is possible to compete in the global market without compromising equity and solidarity. By prioritizing the well-being of its workers and the communities where they operate, Mondragón offers a viable and sustainable alternative to relocation, aligning its business practices with the fundamental principles of the World Day of Social Justice.
Associate Professor at University of Granada