Premium Essay

Case Report: Blood Bananas: Chiquita in Colombia

In:

Submitted By busi
Words 818
Pages 4
Summer
2013
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 form “against the government” & other wealthy people in the country. Some of these groups settled in the areas where Chiquita had facilities.
Chiquita run into problems with theses groups around 1997, mainly with FARC (Revolution Armed Forced of Columbia) and AUC. They began to kidnap and kill employees of this company. The terrorist groups began asking for money in turn they would stop harming their employees. For Chiquita this decision to pay the AUC seem to be an easy one because or the lack for government and the lack of laws in place.
There are many key issues that lead Chiquita Banana’s decision to pay the terrorist groups the FARC & the AUC. One key issues the increasing demand for bananas in new countries like Russia, China and other countries in the Middle East. Chiquita felt as if it had pressure to obtain and grow in these markets. Along with those new markets, Chiquita had their current demand in established markets like the United States and Europe. On average US consumes 27 pounds of bananas per person per year. In Europe its about 20 pounds per person per year. Chiquita also had issues in it Corporate Governance Mechanisms.
At least three of Chiquita’s top executives had a part in the decision to pay the AUC. One key individual in Chiquita’s choice to pay the AUC was Roderick Hill; he was the head of the Board of Directors

Similar Documents

Premium Essay

Blood Bananas: Chiquita in Columbia Case

...Chiquita's history in Colombia is more than a century old. Its roots grow out of the United Fruit Company, notorious in Latin America as a U.S. Army backed opponent to agrarian reform and agricultural workers' unions. Though later known as United Brands in 1970, and then Chiquita in 1989, business in Latin America has continued in similar veins. In 1928, several thousand workers of Colombia's banana plantations began a strike demanding written contracts, eight-hour days, six-day weeks and the elimination of food coupons. Military forces murdered thousands of United Fruit Company Workers who were protesting. [1] Throughout the 20th century, the company was infamous for using a combination of its financial clout, congressional influence and violent refusal to negotiate with striking workers to establish and maintain a colony of "banana republics" in Latin America. Often the CIA and the US Marines provided the company's muscle, as in the case of the overthrow of the populist Guatemalan president Jacobo Arbenz in 1953. [2] In 1975, a federal grand jury accused United Brands of bribing Honduran President Osvaldo Lopez Arellano with $1.25 million, with the promise of another $1.25 million later, in exchange for reducing taxes on banana exports. Lopez Arellano was removed from power, but later investigations revealed repeated bribes carried out by the company. [3] Subpoenas were also issued regarding possible payoffs in Italy, West Germany, Panama and Costa Rica. [4] In May...

Words: 3708 - Pages: 15

Premium Essay

Blood Banana

...TB0245 Andreas Schotter Mary Teagarden Blood Bananas: Chiquita in Colombia No one laughs at the banana in its areas of origin. It is too serious a business, on which jobs and lives depend. Peter Chapman, Author of Jungle Capitalists. For Chiquita Brands International, a pioneer in the globalization of the banana industry, bananas are not only serious business, they represent an array of economic, social, environmental, political, and legal hassles. Since its founding more than a hundred years ago as United Fruit Company, Chiquita has been involved in paying bribes to Latin American government officials in exchange for preferential treatment, encouraging or 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.1 For American multinationals, the rewards of doing business abroad are enormous, but so are the risks. Over the past decades, no place has been more hazardous than Colombia, a country that is just emerging from a deadly civil war and the effects of wide-ranging narco-terrorism. Chiquita found out the hard way. It made tens of millions in profit growing bananas in Colombia, only to emerge with its reputation splattered in blood.2 In 2004, Chiquita voluntarily admitted criminal responsibility to the U.S. Justice Department that one of its Colombian banana subsidiaries had made protection payments from 1997...

Words: 9954 - Pages: 40

Premium Essay

Supply Chain Management

...Supply Chain Management: Food (Pineapples and Plantains) Chestnut Hill Farms Table of Contents I. Major manufacturers/producers or service providers for pineapples and plantains II. Total output worldwide regarding pineapples and plantains – divided by countries. III. The import export statistics to show major producers and major consumers for pineapples and plantains IV. Local manufacturer Chestnut Hill Farms: vendors/suppliers, distributors, wholesalers and retailers. V. Pineapple and plantain flowchart (vertical integration) VI. Discuss major problems and issues in the pineapple and plantain supply chain VII. Include, suggestions, if any, for making improvements regarding the pineapple and plantain supply chain I. Major manufacturers/producers or service providers for pineapples and plantains Today many countries have become pineapple producers, making the fruit production grow over 400% since 1960. Then again, a rise of 50% was seen after the introduction of what they call the “Gold” variety, developed in the 1990s by Fresh Del Monte. Pineapple consumption has double in last 10 years, making the industry grow into a more complex chain. Other major fruit product today is plantains, which production has grown over 60% in the last 30 years. Plantains have become a major part of food in Central and West Africa, and in other regions such as the Caribbean Islands, South, and Central America. As comsuption for both fruits have...

Words: 5513 - Pages: 23

Free Essay

Child Labour

...10000 quiz questions and answers www.cartiaz.ro 10000 general knowledge questions and answers 10000 general knowledge questions and answers www.cartiaz.ro No Questions Quiz 1 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 Carl and the Passions changed band name to what How many rings on the Olympic flag What colour is vermilion a shade of King Zog ruled which country What colour is Spock's blood Where in your body is your patella Where can you find London bridge today What spirit is mixed with ginger beer in a Moscow mule Who was the first man in space What would you do with a Yashmak Who betrayed Jesus to the Romans Which animal lays eggs On television what was Flipper Who's band was The Quarrymen Which was the most successful Grand National horse Who starred as the Six Million Dollar Man In the song Waltzing Matilda - What is a Jumbuck Who was Dan Dare's greatest enemy in the Eagle What is Dick Grayson better known as What was given on the fourth day of Christmas What was Skippy ( on TV ) What does a funambulist do What is the name of Dennis the Menace's dog What are bactrians and dromedaries Who played The Fugitive Who was the King of Swing Who was the first man to fly across the channel Who starred as Rocky Balboa In which war was the charge of the Light Brigade Who invented the television Who would use a mashie niblick In the song who killed Cock Robin What do deciduous...

Words: 123102 - Pages: 493

Free Essay

International Business

...This text was adapted by The Saylor Foundation under a Creative Commons Attribution-NonCommercial-ShareAlike 3.0 License without attribution as requested by the work’s original creator or licensee. Organization The overarching logic of the book is intuitive—organized around answers to the what, where, why, and how of international business. WHAT? Section one introduces what is international business and who has an interest in it. Students will sift through the globalization debate and understanding the impact of ethics on global businesses. Additionally, students will explore the evolution of international trade from past to present, with a focus on how firms and professionals can better understand today’s complex global business arena by understanding the impact of political and legal factors. The section concludes with a chapter on understanding how cultures are defined and the impact on business interactions and practices with tangible tips for negotiating across cultures. WHERE? Section two develops student knowledge about key facets of the global business environment and the key elements of trade and cooperation between nations and global organizations. Today, with increasing numbers of companies of all sizes operating internationally, no business or country can remain an island. Rather, the interconnections between countries, businesses, and institutions are inextricable. Even how we define the world is changing. No longer classified into simple and neat...

Words: 239764 - Pages: 960