Abstract: Chiquita Brands International and its leaders learned a very hard lesson about paying off terrorist groups to protect their employees. Over the past 25 years‚ no place has been more perilous for companies than Colombia‚ a country that is finally beginning to emerge from the effects its Colombian banana subsidiaries had made protection payments to terrorist groups from 1997 through 2004. The Justice Department began an investigation‚ focusing on the role and conduct of Chiquita and some of
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BUSA 4980 10/24/12 Case analysis Blood Bananas: Chiquita in Columbia As learned in class‚ the advantages of international business are great‚ but so are the risks. Some of the risks involve ethical issues as the ones Chiquita faced doing business in Columbia. Chiquita was the first to successfully internationalize banana trade; Chiquita did so by paying special attention to retail development and followed industry trends. Their competitive advantage was acquired when the company revolutionalized
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Since the introduction of the cultivated banana onto the US market 100 years ago‚ banana trade has increased rapidly. Currently‚ about 20% of total production is entering world trade. World trade is dominated by three 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
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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 it was the right decision for the company as well as employees. Chiquita choice to pay the terrorist groups is not justified because this act
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Building International Brand Architecture Brands play a critical role in establishing afirm ’svisibility andABSTRACT position in international markets. Building a coherent international brand architecture is a key component of thefirm ’soverall international marketing strategy‚ because it provides a structure to leverage strong brands into other markets‚ assimilate acquired brands‚ and integrate strategy across markets. The authors examine the way firms have developed international brand architecture
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It is apparent that Chiquita has made efforts to be socially responsible. Visible through their homepage which highlights social responsibility‚ sustainability‚ innovation‚ and community involvement as it key public strategies. However‚ cooperating with eco-warriors‚ social activists and unions has come to little avail for the international Banana supplier. While trying to improve their social reputation‚ Chiquita’s competition has been outselling their product to retailers; retailers are not recognizing
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Should Chiquita have agreed to make the payments to the terrorist group to protect its employees? In knowing the history of the Revolutionary Armed Forces of Colombia‚ also known as FARC‚ I can understand Chiquita’s executives reasoning in making the decision to pay the paramilitary group. I agree with their decision to make the protection payments. What ethical principles support your opinion? One of the strongest principles is: Do no Harm. This means to prevent or minimize harm to the
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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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we will analyze the Chiquita Banana terrorism case and apply legal‚ ethical‚ and international perspectives‚ as well as analyze the managerial and public policy implications of Chiquita’s actions. Contents •Background - Chiquita Banana Terrorism Case •Legal Perspectives •Ethical Perspectives •International Perspectives •Managerial and Public Policy Implications •Conclusion •References Background - Chiquita Banana Terrorism Case Chiquita Brands International‚ the well-known banana
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Chiquita in Columbia I. Overview of the Issue In 1997‚ executives at Chiquita Brands Banadex were faced with a very serious ethical dilemma‚ which would severely impact the future of the company. The executives were confronted by the leader of one of the most powerful terrorist groups in the state of Columbia and the company had a significant choice to make; Chiquita could pay the terrorist group a penny for every dollar of bananas exported in return for the safety of their employees or they
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