What do you think were the root causes for Chiquita’s actions in Colombia that ultimately led to their conviction
“Historically, the banana trade symbolized economic imperialism, injustices in the global trade market, and the exploitation of agriculture-dependent third-world countries”(2). However, they remain to be one of the most profitable items in grocery stores. Making bananas crucial to economic and global food stability for countries all over the world. They are the third largest staple crop, coming only after wheat and coffee. Since bananas are such a sought after fruit, many companies have gone to extensive lengths in the to fight for a share of the market. Chiquita Brands International was one of the pioneer companies to try and globalize bananas. They took a risk and made some very critical mistakes along the way.
Throughout the past several decades, Columbia is known to have been one of the most hazardous countries, due to its recent “deadly civil war and the effects of wide-ranging narco-terrorism”(1). Despite the huge risk associated with this country, Chiquita decided to take the chance, it’s one that end up costing them their reputation. Chiquita admitted, in 2004, to the U.S. Justice Department, that one of its subsidiaries was guilty of making protection payments from 1997 through 2004 to different terrorist groups inside Colombia. In addition to that, as stated in the case brief, news surfaced that:
“Chiquita ha[d] been involved in paying bribes to Latin American government officials in exchange for preferential treatment, encouraging of supporting U.S. coups against smaller nations, putting in place dictatorships in Central America’s “banana republics,” exploiting local workers, creating an abusive monopoly, and now doing business with terrorists.”
As a result, Chiquita faced a high-profile investigation and trial, as well as a separate lawsuit from the Colombian victims’ families in 2010. In response to this devastation, Chiquita’s got a new CEO in 2004, Fernando Aguirre. He faced a long road ahead that consisted of trying to decipher the
Throughout the past several decades, Columbia is known to have been one of the most hazardous countries, due to its recent “deadly civil war and the effects of wide-ranging narco-terrorism”(1). Despite the huge risk associated with this country, Chiquita decided to take the chance, it’s one that end up costing them their reputation. Chiquita admitted, in 2004, to the U.S. Justice Department, that one of its subsidiaries was guilty of making protection payments from 1997 through 2004 to different terrorist groups inside Colombia. In addition to that, as stated in the case brief, news surfaced that:
“Chiquita ha[d] been involved in paying bribes to Latin American government officials in exchange for preferential treatment, encouraging of supporting U.S. coups against smaller nations, putting in place dictatorships in Central America’s “banana republics,” exploiting local workers, creating an abusive monopoly, and now doing business with terrorists.”
As a result, Chiquita faced a high-profile investigation and trial, as well as a separate lawsuit from the Colombian victims’ families in 2010. In response to this devastation, Chiquita’s got a new CEO in 2004, Fernando Aguirre. He faced a long road ahead that consisted of trying to decipher the