General Business Principles Letter
Carta de Principios Generales de Negocios

Contents of this letter:
1. Objectives
2. Responsabilities
3. Economic Principles
4. Business Integrity
5. Health, Safety & Environment
6. Community
7. Competence
8. Comunications

1. Objectives

Our general objectives at Crafts Pilandros are to design, create, produce or manufacture, sale and distribute crafted items and services from popular art in an industrial form, preserving the culture and environment that either motivated or inspired the original items or services.

Part of our objectives also are to obtain the highest level of social and economic living welth of all persons, business or institutions that join our effort to reach these objectives, from employees and executives to customers, partners and representatives.

2. Responsabilities

Our company Crafts Pilandros believes in medium to long term commitments to achieve their objectives, based on the following responsabilities:

3. Economic Principles

Our responsability towards customers, artisans and employees demand from us to operate in a profitable active economic environment that allows us to accomplish our objectives. Is for this reason that our company not only understands but enforces the basic entrepenurial principle of running operations as efficently as possible.

In other words, our company must observe closely the satisfaction of our customers, employees and artisans, in economic terms, meaning that if a customer buy and receive a top quality crafted item from our company, is due to fully satisfied employees, executives and artisans each of them contributing with valuable elements that are essential part of the service and customer's chain relationship, knowing alltogether that we are delivering the highest quality of craftmanship available, which allows us to share proper utility margins for each one, so that we are able re-invest in the improvement of our operations helping us to mantain a privileged market position within a free economic market.

4. Business Integrity

We at Crafts Pilandros understand and propitiate a clean, stable and legal environment in all of our business activities. To us, any type of hidden, distortioned or altered negotiation or process that requires or allow, in any way bribery of any type is totally unacceptable. Additionally any negotiation that violates, propitiates or motivates tha alteration or rupture of our codes of conduct, included in the SA8000 regulations is totally unacceptable.

Consecuently we will allways require that our commercial and business relations should be clear and transparent based on and respecting the codes of conduct of the Good Business Practices internationally known and accepted by the world business community.

All of our employees must avoid any conflict of financial interests with our company when doing any type of activities related to our customers, partners, artisans or suppliers. All of our executives and/or representatives must also observe this regulations strictly, as to the extent of having the chance to lose their privileges and/or business deals, past or future, with any of our corporative departments or branches.

5. Health, Security and Environment

To fulfill our objectives and in accordance with our responsabilities, we at Crafts Pilandros have training programs, systems and publicize articles to show and describe the proper use of our products, safety equipment and disaster prevention programs to all of our employees, executives and commercial partners.

All our employees must be registered as part of a social security program or institution, and if not available our company will provide one hiring the proper company.

Our company will allways enforce, wherever possible, the proper interconnection to public systems either for draining water or recycling water, and will watch closely for proper public waste disposal institutions or private companies, avoiding at all times any disposal of toxic or hazardous materials in any way to preserve and contribute to the welthness of the community environment.

Our company will allways use either electricity or propane liquid gas to operate our melting or drying equipments avoiding any combustion of hazardous materials which may produce any environmental contamination.

All of our artisans or suppliers of any woodwork should present or show to our company the proper permit or license which demonstrates that they are in accordance with the community established regulations about wood processing. If local authorities do not require any permit or license or the artisan's operation is to small to apply for any wood license, we will ask for a commitment or good intentions document where states that this person si doing whatever possible to make the best and rational use of the woods he is using to deliver their handicrafts.

6. Community

To contribute to the welth of the local community, our company will allways have as their first option the hiring of personnel and vendors from the surroundings of the local community, in order to generate a good and positive business climate.

All personnel, companies and institutions related to our business activities will be enforced to observe the best rules of social and business conduct to keep and generate a good community relationship.

So the community will notice at all times an harmonic relationship to our company as such as promoting small but meaninful social acts between employees, executives and suppliers, when our company celebrates with them their birthday or either reaching their personal goals or christmas celebrations, etc.

7. Competence

We at Crafts Pilandros understand and promote honest, legal and healthy business competition at all levels of products, services and markets. We believe that good competition will allways be the motor that promotes and motivates the business developing of any market or country.

Within the healthy competition frame we will allways promote a good behavior towards our customers, based on the principles of "acting as good as everybody is expected to act" to motivate the best of any commercial relationship that we all know will forward the market and the industry to gain a sustained development.

8. Communications

At Crafts Pilandros we constantly promote the use and handling of any type of media at all levels, from the simplest communications practices as the telephone, which by the way is accesible to all of our employees, the bulletin board, up to the use of high technological media as the internet and intranet, which our company not only is a user and believer but has invested in a fully sistemized operational database based on intranet and the internet.

We also believe and support the use of media communications to mantain an efficent and confident relationship with our customers and suppliers, because of that we have invested in the development of an Electronic Data Interchange (EDI) via Internet which will allow us to interact with them actively and will start operations in January 2003.