Relevance of internal control in union organizations: transparency and efficiency

Abstract

The importance of internal control in trade union organizations is analyzed, as well as recent legislative reforms that have transformed their operation. Since 2012, the Federal Labor Law requires access to public information for unions, and since 2014, Article 6 of the Constitution classifies them as subjects obliged to render accounts. The study focuses on the implementation of internal control standards in a specific union, aligned with the Mexican Financial Reporting Standards, due to the management of public resources, union dues and annual budgets; all through the implementation of a Policies and Procedures Manual. Descriptive, inductive and analytical methods were used to underline the relevance of internal control in the prevention and detection of risks and fraud. Financial documents were reviewed, interviews were conducted with managers and members were surveyed on transparency and efficiency in management. The findings show that a robust internal control improves financial transparency and operational efficiency in unions, although areas for improvement were identified, such as staff training and the use of technology in monitoring. It is concluded that internal control is essential to maintain financial integrity and strengthen member confidence, recommending adapted policies and continuous staff training.