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1343 days ago
The Cooperative Principles and Its Economic Consequences By Chaopeng Huang The cooperative principles and values are complicated and intricate. Due to the word limit of the statement, I will concentrate on the discussion about 4 (out of 10) principles of Mondragón, and some consequences of the realization of those principles (principles are presented in the order that is convenient for discussion). The first principle is open admission. It basically means that the membership is open to all those who accept the basic principles and are professionally capable. The only restriction put open admission is the practical needs and business requirements of the cooperative, and the worker’s performance during the probationary period. This principle does not reflect much difference between Mondragón and conventional firms. Conventional firms, though may not explicitly express, have admitting standards, which is the evaluative tool against prospective employees. ...1344 days ago
The “third way”-market socialism, social market economy, or neither? By Chaopeng Huang Prior to the formal discussion of this issue, it would be helpful to first present the concepts of market socialism and social market economy. Market socialism, as suggested by the term, is a hybrid of market and state ownership. Under the regime of market socialism, the system combines social ownership of capital with market allocation. Social market economy, on the other hand, is the combination of free market forces with significant state intervention to achieve desired social goals. Social market economy is a stretch of capitalism, while market socialism is a stretch of socialism. Both systems are appealing, at least in theory, because they capture the market’s advantages in allocative efficiency and marry it to the distributional equity of socialism. These systems remind me the issue in strategic management. When a firm is to implement cost leadership strategy and ...
