Topic > The situation of Chiquita Brands International - 947

IntroductionThe situation of Chiquita Brands International is serious. Bananas, Chiquita's main source of income, cause an ethically questionable situation. Bananas are a very popular food in Europe and the United States because they are cheap and convenient. Above all, the price of the fruit can only be guaranteed because the bananas are grown on large plantations along the Equator. These large plantations cause social and environmental problems. To control the situation in Colombia, Chiquita decides to pay the paramilitary groups. Due to changes in legislation, ethical problems turn into legal and political ones and thus become a big business risk. It is necessary to make a decision that resolves business and legal issues and satisfies the situation in the country. Situation During the period between 1997 and 2004, Chiquita Brands International, represented by its Colombian subsidiary Banadex SA, paid a total of $1.7 million to the AUC paramilitary group in Colombia. The purpose of these payments was the protection of their employees in a country that has become a source of violence and lack of governance due to numerous problems. Part of the ethical problem in this situation is that the money represents further funding of violent forces and the situation becomes rather worse than resolved. A second and more difficult part is that Chiquita is the creator and promoter of the problematic situation. Furthermore, the change in legislation adds a legal problem to the situation. The banana industry is a highly profitable business for large companies such as Chiquita, Dole and Del Monte. In order to reduce business volatility and control the costs of the natural banana product, companies take various actions. First of all... middle of the paper... Conclusion The proposed solution can convince on all ethical levels. First, the solution violates irrelevant principles or standards of conduct. It would be even more positive if the public knew about these activities, because perhaps they would give even more support and other companies (for example Del Monte and Dole) would also be forced to think again. Second, in the long term Chiquita and its executives can establish themselves as an honest business partner and have the foundation for excellent organizational performance, because actions can speak for themselves. Communication with all stakeholders could improve the outcome of the proposed solution. Third, all consequences of the proposed solution are positive. In the short term, Colombian employees are preferred, but in the long term all stakeholders benefit and the company's core values ​​are respected.