Comparison between mondragon corporation and Microsoft – conclusion

Various stakeholders play an important role towards the growth of an entity thus requiring the entity to establish an effective balance among such stakeholders’ interests. Although capitalistic entities could achieve such a balance through their corporate social responsibility programs, recent events such as the financial crisis have highlighted that such initiatives may only achieve a temporary effect in enhancing social good. Accordingly, the alternative forms organizing may prove necessary to achieve long-term effects. One such alternative is a cooperative approach as exemplified by MCC. In this approach, entities incorporate their employees into joint ownership of the corporation and use a fair process in distributing business surpluses to all members. Such an approach enhances employees’ commitment to the corporate values thus reducing the risk for imprudent practices within the organization. Accordingly, a cooperative approach could be the needed shift for entities to contribute towards a socially just business and economic environment.

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