Although these principles have developed over time and reflect a modern business culture, it is interesting to note a socially progressive tone in certain aspects, particularly considering Mondragon’s origins in a rural, Roman Catholic region. As a paradigm for church employment practices, for example, the concepts of open admission (point one) contrasts with the relatively closed nature of the priesthood and ministry teams managed by churches. And the concept of democratic organisation (point two) makes for interesting comparison with the hierarchical nature of ecclesiastical institutions, notwithstanding the representative nature of synods in the Church of England and the Connexional system in the Methodist church.
Christian origins
Peter Davis (2006) claims that the co-operative movement arises in early modern Britain with the Diggers and the Levellers. After them, the social reformer and factory owner Robert Owen (1771-1858) is widely acknowledged as the founder of co-operative principles, and although largely influenced by political thinking, he drew on St Paul’s writing in support of his ideals. His idea was communitarian, nurturing a community of workers, and although he is a significant figure in the history of co-operatives, this did not turn out to be the most popular model. Instead the movement largely developed a concept of community based on consumers, beginning in 1844 with the Rochdale Society’s introduction of the dividend on each purchase. The communitarian model is overlooked today but there are still many people in communal living in Britain and America. The Rochdale Society was also modelled on the ideas of William King, a Christian writer who produced a journal called The Co-operator.
The International Cooperative Alliance’s list of principles dwindled by the 1960s down to a narrower focus on consumer profit sharing, but this was revised in 1995 to reinstate some of the management-focused aspects of the co-operative, such as collective ownership of capital and the importance of community. It has been argued that the excessive focus on distributing profit to consumers meant many co-operatives did not invest to grow after the second world war. They have also been hampered in recent decades because many other retailers have also begun to reward purchasing loyalty. Perhaps, Davis suggests, it is time for Christian co-operatives to reappear, particularly as the state is withdrawing from market regulation. He cites a number of possible models for this, including the Kibbutz in Israel, Mondragon in Spain and the role of co-operatives in reconstructing the economy of Greek Cyprus after the island’s partition in 1974.
Further proof of the international appeal of Christian co-operative business can be found in the writings of Toyohiko Kagawa (d 1960), a Japanese Christian activist who campaigned passionately for Christian co-operatives in Japan. His book Brotherhood Economics (1936) considered that the best alternative to capitalism, Communism and fascism was to be found in an alliance between Christian churches, co-operative businesses and the peace movement. His wide-ranging social activism is described by Robert Schildgen (1988).
Clive Beed and Cara Beed (2009) state that Italy has more co-operative businesses than anywhere else in developed economies.