Renewing Business Strategies for Chiquita: The Largest Banana Exporter in Costa Rica
Case Study 5: Chiquita Sticks Its Bananas Out
1. ON ETHICS: Why has Chiquita chosen to be proactive along a number of CSR dimensions?
Chiquita was proactive to a number of CSR dimensions in order to build strong relationships with local farmers, environmental organizations and communities. The history of Chiquita has involved several negative issues of the company implementing improper behavior toward employees and the farming community. In hopes to correct this bad reputation, Chiquita conducted a proactive strategic response to an ethical challenge when the company agreed not to buy fuel made from Canadian tar sands. Chiquita is committed to conducting business ethically – not only in compliance with the letter and spirit of the law, but also as an industry leader in doing the right things to do (Peng, 2014, p. 89). Chiquita demonstrating positive concern for their consumers’ cultures and ethics showed the company has good core values and integrity.
2. ON ETHICS: Why has Chiquita not been successful in changing industry norms?
Chiquita has not been successful as a result of changing the industry norms because their competitors do not feel the need to address many of the changes that they have enforced. A number of the norms involve ethics and culture issues which are being recognized and acknowledge at a minimum standards by Dole and Del Monte’s management. However, failing to understand and adapt to the changing norms by “sticking one’s neck out” in an insensitive and unethical way may lead to unsatisfactory or disastrous results (Peng, 2014, p. 86).
3. ON ETHICS: As Chiquita’s CEO, what are you going to recommend to the board? As the CEO, I would explain to the board that initially the company may experience a loss in profits; but, continuing to implement positive CSR dimensions will be recognized and appreciated by concern consumers and the profits will eventually increase in time. I would remind the board that Chiquita has received
1. ON ETHICS: Why has Chiquita chosen to be proactive along a number of CSR dimensions?
Chiquita was proactive to a number of CSR dimensions in order to build strong relationships with local farmers, environmental organizations and communities. The history of Chiquita has involved several negative issues of the company implementing improper behavior toward employees and the farming community. In hopes to correct this bad reputation, Chiquita conducted a proactive strategic response to an ethical challenge when the company agreed not to buy fuel made from Canadian tar sands. Chiquita is committed to conducting business ethically – not only in compliance with the letter and spirit of the law, but also as an industry leader in doing the right things to do (Peng, 2014, p. 89). Chiquita demonstrating positive concern for their consumers’ cultures and ethics showed the company has good core values and integrity.
2. ON ETHICS: Why has Chiquita not been successful in changing industry norms?
Chiquita has not been successful as a result of changing the industry norms because their competitors do not feel the need to address many of the changes that they have enforced. A number of the norms involve ethics and culture issues which are being recognized and acknowledge at a minimum standards by Dole and Del Monte’s management. However, failing to understand and adapt to the changing norms by “sticking one’s neck out” in an insensitive and unethical way may lead to unsatisfactory or disastrous results (Peng, 2014, p. 86).
3. ON ETHICS: As Chiquita’s CEO, what are you going to recommend to the board? As the CEO, I would explain to the board that initially the company may experience a loss in profits; but, continuing to implement positive CSR dimensions will be recognized and appreciated by concern consumers and the profits will eventually increase in time. I would remind the board that Chiquita has received
References: Peng, M. W. (2014). Global Business (3rd ed.). Mason, OH: South Western Cengage Learning.