Chiquitas Global Turnaround
Executive Summary
This report details several international management problems that Chiquita has been faced with over the past two decades. Many of these problems are to do with the company’s previously poor image when it came to Corporate and Social responsibility. Over the years Chiquita faced many accusations about the conditions workers were faced with at many of their facilities in Latin America and have also had their environmental policies questioned many times in the press. The company has made great strides in recent years in improving their public image with regards to corporate and social responsibility. In particular Chiquita’s commitment to the Better Bananas Project has helped improve their public image along with the continued work they are doing with the South American communities who farm their bananas. The Company also faced a significant legal and regulation of trade problem when the EU’s 1993 integration program saw tariffs on the company imports to Europe greatly increased and their market share halved almost overnight. This report recommends that instead of going through a costly legal battle to gain re-entry to the European Banana market the company instead focuses on newer emerging markets such as Asia.
Introduction
Chiquita Brands International is a multinational producer, distributor and marketer of bananas, sourcing many of its produce from developing countries in Latin America. Banana industries have long been tarnished as having unethical business standards forcing companies such as Chiquita to take on ‘Corporate Social Responsibility’ (CSR). CSR has been an essential element for Chiquita to take into consideration for a global turnaround. Vital aspects Chiquita had to consider were commitment to legal, ethical, environmental and social standards. These factors are at the most forefront to resolving CSR issues. Another key issue affecting the organisation was its struggles with access to a free market in the EU. The trade
This report details several international management problems that Chiquita has been faced with over the past two decades. Many of these problems are to do with the company’s previously poor image when it came to Corporate and Social responsibility. Over the years Chiquita faced many accusations about the conditions workers were faced with at many of their facilities in Latin America and have also had their environmental policies questioned many times in the press. The company has made great strides in recent years in improving their public image with regards to corporate and social responsibility. In particular Chiquita’s commitment to the Better Bananas Project has helped improve their public image along with the continued work they are doing with the South American communities who farm their bananas. The Company also faced a significant legal and regulation of trade problem when the EU’s 1993 integration program saw tariffs on the company imports to Europe greatly increased and their market share halved almost overnight. This report recommends that instead of going through a costly legal battle to gain re-entry to the European Banana market the company instead focuses on newer emerging markets such as Asia.
Introduction
Chiquita Brands International is a multinational producer, distributor and marketer of bananas, sourcing many of its produce from developing countries in Latin America. Banana industries have long been tarnished as having unethical business standards forcing companies such as Chiquita to take on ‘Corporate Social Responsibility’ (CSR). CSR has been an essential element for Chiquita to take into consideration for a global turnaround. Vital aspects Chiquita had to consider were commitment to legal, ethical, environmental and social standards. These factors are at the most forefront to resolving CSR issues. Another key issue affecting the organisation was its struggles with access to a free market in the EU. The trade
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