THE TEN PRINCIPLES OF OOPERATION

As Taught by Fr. José María Arizmendiarrieta

(Founder of the Mondragon Cooperative Movement)

Fr. Arizmendiarrieta, a Basque priest deeply rooted in Catholic Social Teaching, presented these principles not as mere business rules but as a practical application of the Gospel in economic life. He saw cooperatives as a “third way” between unchecked capitalism and socialism — a path where work, dignity, solidarity, and the common good flourish. He often taught them through education, reflection, and lived example, grounding them in Scripture, Rerum Novarum (Leo XIII, 1891), and the spirit of later social encyclicals. Magnifica Humanitas (Leo XIV, 2026) extends this vision powerfully to the age of AI and robotics, insisting that technology must serve the magnificent dignity of the human person and the common good.

Here is each principle, fleshed out in the spirit of Fr. Arizmendiarrieta’s teaching, with supporting quotes from Scripture and Catholic Social Thought.

1.      Open Admission (Open Membership)

Anyone who can contribute through honest work and accepts the principles may join, without discrimination based on origin, ideology, or background.

• Fr. Arizmendiarrieta’s Spirit: Cooperatives are for the people — inclusive like the Kingdom of God.

• Scripture: “There is neither Jew nor Greek, slave nor free, male nor female, for you are all one in Christ Jesus” (Galatians 3:28).

• Rerum Novarum: “The Church... by reminding each of its duties to the other, and especially of the obligations of justice.” (No. 19)

• Magnifica Humanitas: AI and economic systems must promote equitable access and participation, not exclusion or elite control.

  
  

2.      Democratic Organization (One Person, One Vote)

Cooperatives are governed democratically. The General Assembly of worker-owners holds supreme authority.

• Fr. Arizmendiarrieta’s Spirit: Every worker is a co-responsible owner, reflecting the dignity of the person called to participate in creation.

• Scripture: “You are a chosen race, a royal priesthood, a holy nation” (1 Peter 2:9) — all share responsibility.

• Rerum Novarum: “Mutual agreement results in the beauty of good order.” (On capital and labor working together harmoniously.)

• Magnifica Humanitas: Emphasizes subsidiarity and participatory governance in technological and economic decisions.

  
  

3.      Sovereignty of Labor

Labor (the human person at work) is primary. Profit and wealth are distributed based on work contributed; the cooperative exists first to create and sustain dignified jobs.

• Fr. Arizmendiarrieta’s Spirit: “Labor is the source of all wealth and the foundation of society.”

• Scripture: “The laborer deserves his wages” (Luke 10:7; 1 Timothy 5:18). “Six days you shall labor...” (Exodus 20:9).

• Rerum Novarum: “Each needs the other: capital cannot do without labor, nor labor without capital.” (No. 19) Labor has primacy in dignity.

• Magnifica Humanitas: Robots and AI must serve labor and human creativity, never reduce persons to mere data or replace their central role.

  
  

4.      Instrumental and Subordinate Nature of Capital

Capital is a tool — necessary but subordinate to labor. It does not confer voting power or dominate decisions.

• Fr. Arizmendiarrieta’s Spirit: Money serves people; people do not serve money.

• Scripture: “You cannot serve God and mammon” (Matthew 6:24). The rich young man challenged (Mark 10).

• Rerum Novarum: Strongly defends private property but condemns its misuse to exploit workers. Capital exists for the common good.

• Magnifica Humanitas: Warns against technocratic and financial dominance; capital and algorithms must remain instruments for human flourishing.

  
  

5.      Participatory Management

Workers have real input in management through information, training, and decision-making structures.

• Fr. Arizmendiarrieta’s Spirit: Education and participation make every member a protagonist.

• Scripture: “Not domineering over those in your charge, but being examples to the flock” (1 Peter 5:3).

• Rerum Novarum: Encourages workers’ associations that foster mutual responsibility and moral development.

• Magnifica Humanitas: Calls for transparency, accountability, and meaningful participation in AI governance.

  
  

6.      Wage Solidarity

Limited wage differentials (historically ~6:1 ratio in Mondragon) promote internal equality and external solidarity.

• Fr. Arizmendiarrieta’s Spirit: Solidarity prevents division and builds true community.

• Scripture: “Bear one another’s burdens, and so fulfill the law of Christ” (Galatians 6:2). The early Christian community shared resources (Acts 4:32-35).

• Rerum Novarum: Employers must treat workers with justice and Christian charity, paying just wages that support families.

• Magnifica Humanitas: Economic systems must reduce inequality so that technology benefits all, not just a few.

  
  

7.      Inter-Cooperation

Cooperatives support one another through shared resources, mutual aid, and joint initiatives.

• Fr. Arizmendiarrieta’s Spirit: The movement grows stronger together — like the Body of Christ.

• Scripture: “We, though many, are one body in Christ” (Romans 12:5).

• Rerum Novarum: Promotes workers’ associations and mutual support.

• Magnifica Humanitas: Encourages global and local cooperation in the digital age for the common good.

  
  

8.      Social Transformation

Cooperatives work to build a more just, supportive, and sustainable society beyond their own walls.

• Fr. Arizmendiarrieta’s Spirit: Economic action is a means to evangelize and transform the social order.

• Scripture: “Thy Kingdom come, Thy will be done on earth as it is in heaven” (Matthew 6:10). “Love your neighbor as yourself” (Mark 12:31).

• Rerum Novarum: Aims at the moral and material uplift of the working classes and the harmony of society.

• Magnifica Humanitas: AI must contribute to social justice, peace, and integral human development.

  
  

9.      Universality (Solidarity with the Broader Movement)

Cooperatives stand in solidarity with all who promote economic democracy, justice, and the international cooperative ideal.

• Fr. Arizmendiarrieta’s Spirit: The cooperative spirit knows no borders.

• Scripture: “Go and make disciples of all nations” (Matthew 28:19). The Good Samaritan (Luke 10).

• Rerum Novarum: Universal call to justice and charity across classes and peoples.

• Magnifica Humanitas: Global solidarity in facing technological challenges.

  
  

10. Education

Continuous education — cooperative, professional, technical, and values-based — is essential. Invest generously in people and youth.

• Fr. Arizmendiarrieta’s Spirit: “Cooperativism is an educational movement that uses economic action.”

• Scripture: “Train up a child in the way he should go” (Proverbs 22:6). Jesus as teacher.

• Rerum Novarum: Stresses formation of workers in virtue, skills, and faith.

• Magnifica Humanitas: Urges education so that people, especially the young, master technology rather than be mastered by it.

  
  

Fr. Arizmendiarrieta’s Closing Vision (paraphrased in his spirit):These principles are not abstract theory. They are a lived Gospel in the economy — where work regains its dignity, persons are never reduced to tools (whether of capital or machines), and cooperation reflects the Trinitarian communion. They guided poor youth of Mondragon to lift their city to the top innovation hubs of the world.

In the age of robots and AI, as Magnifica Humanitas teaches, we must ensure technology serves this cooperative, human-centered vision so that humanity may truly flourish as co-creators with God.