Strategic Management 581
Running a business is about more than just making money. It requires adequate consideration to a number of issues, of which ethics is most certainly one. As a business grows and becomes more significant, it impacts the lives of people in so many ways. But without a clear understanding of business ethics, a company can lose its business by ruining its reputation and alienating employees, suppliers and the local community around it. With recent expansions in global businesses and the decrease of trade barriers worldwide, the importance of ethics in business has been further underlined.
Chiquita Brands International Inc., is a leading marketer and distributor of high quality fresh produce. The company is one of the largest banana producers in the world. Like any company operating across boarders, Chiquita was faced with a terrible dilemma. Operating in a country without political stability and high crime, the company was threatened to pay security charges to terrorists in order to continue their business smoothly. The situation that faced Chiquita is very critical as it involved the lives of thousands of innocent people and employees, and on the other hand billions of dollars worth of business.
The decision is not easy. Chiquita can pay off these terrorists to keep the business running and ensure the safety of its employees, but what about the lives of the other innocent people being harmed by those criminals? Does Chiquita have the conscience to bare such a cost? Where are human rights? and ethics?
After careful analysis and consideration of the case, it is proposed that it is in the company’s best interest not to pay the AUC. This decision will surely cause the company major drawback and losses, but will hopefully save them the trouble of dealing with criminals. This will also protect the company’s reputation, and will be highly appreciated by...