Factory Chi Fung Essay

Final Report on Labor Audit conducted at Factory Chi Fung S.A. de C.V.

INTERVIEW ANALYSIS

Most of the workers who were interviewed at the factory claimed to be afraid of losing their jobs if they made any statements, and therefore, they asked to have their identities protected and to receive assistance in case they were dismissed.

CONCLUSION

The findings of the investigation process in Chi Fung derived in general and specific conclusions, which are both closely linked to key points of the workers’ complaints.

GENERAL CONCLUSIONS

According to the workers’ statements, the maquila Chi Fung has infringed several Labor Rights such as: the right to a decent job, the right to health, the right to safe working conditions, the right to social

In this capacity, the Ministry has not played an active role, and has responded in an inefficient and untimely way.In terms of assessing Carvajal S.A.’s Internal Control System, which includes activities promoted by the Management, internal audit, tax audit, and the Audit Committee, several aspects should be highlighted:

1

General Policies on the Implementation of the Internal Control System

Carvajal S.A. has adopted the Carvajal Code of General Principles, which sets forth the Company’s ethical standpoint, internal policies on management participation, planning and control systems, financial policies, and policies on human and conflict management.

In addition, the Company has implemented the Good Governance Code, the Internal Rules of the General Shareholders’ Meeting, the Internal Rules of the Board of Directors, and the Internal Rules of the Board of Directors’ Committees.

These Codes and Rules govern Carvajal S.A.’s policies concerning the Internal Control System. This system is based on an integrated audit approach, which includes operational, compliance, financial and information systems audits. Carvajal S.A. has defined and recorded the policies, procedures and monitoring controls that regulate the Company’s and subsidiaries’ operating