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
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Summer 2013 Case Report: Blood Bananas: Chiquita in Colombia BUSA 4980 Chiquita Brands international was founded in 1899 after the merger of United Fruit Company and the Boston Fruit Company. As bananas be came more of a staple in every home so do Chiquita Bananas. Bananas are know to mainly grown in tropical places like Central America‚ Africa and Southeast Asia. Chiquita decided to have operations out of Colombia. During this time there was turmoil in Colombia and different terror groups
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countries is dangerous. in the certain situation the country happen to be Colombia. Colombia is a country where there are violent drug cartels and terrorist groups doing ruthless acts for their own profits. A company named Chiquita fell victim to a couple of Colombian terrorist groups from 1997 up to 2004. The two groups were oppositions of one another and wanted payment in exchange for not killing employees of the company. Chiquita decided to pay the money payments which totaled about $1.7 million‚ thinking
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companies‚ Dole Foods‚ Chiquita Brands and Fresh Del Monte Produce‚ with over 100 years’ presence in banana plantation production in Central America and Colombia‚ and together controlling 65% of world exports. They are followed by the Ecuatorian company Noboa‚ which controls another 10%‚ and the European company Fyffes‚ which controls some 6-7%. With the integration towards a single European market‚ the traditionally different supply sources of European and US companies led to a very complex European
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Adam Cooper Chiquita should not have agreed to make payments to the terrorist group in order to protect its employees. The Colombian group has been responsible for making threats and murdering the local citizens and by Chiquita giving monetary payments the group continues to exist. Chiquita is supporting a group that has violently attacked citizens of Colombia. Not only does the company want to follow the ethical principle of promoting personal morality but also comply with legal requirements. The
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What is the responsibility of a business or corporation? Is it to meet stakeholder expectations and follow legal guidelines‚ or is there a higher responsibility? While Milton Friedman asserted in his famous essay that “the social responsibility of a business is to increase profits‚” it can be argued that companies also have higher moral responsibilities. The question in each ethical dilemma is‚ “To whom do we have a moral responsibility?” In this module‚ we will analyze the Chiquita Banana terrorism
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1 a) Buyers have high power in the banana industry because they choose the company that has the best customer service and the lowest prices to stock in their stores. This means that the supermarkets can directly impact who has the most market shares in the industry. b) Suppliers have low power in the banana industry because they are at the mercy of the buyers‚ FDA‚ government import laws‚ and mother nature. All these factors creates little control for the supplies‚ and anyone thing can destroy
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1. What is? Chiquita is a banana production company established in United States‚ grows their Banana in Colombia. The main ethical issue is that‚ Chiquita involvement in payment to terrorist organization in Colombia. Stakeholder analysis Top level management – that is CEO of the company who owns the power‚ Pays money to the terrorist organization for the protection of company’s employees working in outsource country. Employees / families of employees –due to urgency‚ employees are working in those
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Final Case Brief Problem/Challenge Statement Chiquita is blamed for the actions of two terrorist organizations that extorted money from the company. Victims and their families of the attacks performed by these two terrorist organizations are looking for compensation from Chiquita‚ claiming that the company is responsible for making those attacks happen. Chiquita has to make a decision whether or not to take the responsibility for the actions performed by the two organizations. Key Facts/Background
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1. Do you agree with the 11thUS Court of Appeals ruling that cleared Chiquita of any liability for the victims killed by the paramilitary group that Chiquita funded? Construct an ethical argument that supports your view. I disagree with the Court’s decision to clear Chiquita of any responsibility for killings committed by the militant groups in Columbia that were supported financially by the U.S. based company. The application of the 1789 Alien Tort Statute is questionable because the judge found
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