Blood Bananas
Blood Bananas: Chiquita In Columbia
Overview:
This complex case touches on fundamental questions of ethics and morality while displaying the inherent risks and rewards associated with operating a business abroad in geographies with histories of violence and civil unrest. The case exposes the challenges faced by Chiquita when trying to maintain production and profitability while also protecting its employees in a hostile situation. In this case, the lines of the ethics and morality are not as straightforward as they seem on the surface, and they can vary greatly depending on the point of view and perspective that you take. Chiquita’s management struggles to make decisions that “will position the company on a positive trajectory and escape the negative legacy and administrative heritage that continues to saddle the company. “ (Schotter p. 14)
Root Causes:
There are a number of different root causes for Chiquita’s actions in Columbia that ultimately led to their conviction. One critical root cause was the unstable political environment that had been present in Columbia over the past six decades. While, Chiquita’s banana operations in Colombia pre-date the most recent surge of violence, beginning with its infamous predecessor, United Fruit Company, over a century ago it is this resurgence that has caused major issues for Chiquita that led to their conviction. Columbia has been constantly fought over by various paramilitary groups ever since the 1948 assassination of populist leader Jorge Eliecer Gaitan triggered La Violencia. (Schotter p. 7) Groups such as the FARC and ELN are insurgent guerrilla militia groups that have been fighting with and against each other for the better half of a century over land, resources, money, political power and overall control of Columbia. “Since the 1980s, the business of bananas in Colombia has been punctuated by gunfire.” (Schotter p. 6) Various militant groups, most recently the AUC, traditionally forced anyone under
Overview:
This complex case touches on fundamental questions of ethics and morality while displaying the inherent risks and rewards associated with operating a business abroad in geographies with histories of violence and civil unrest. The case exposes the challenges faced by Chiquita when trying to maintain production and profitability while also protecting its employees in a hostile situation. In this case, the lines of the ethics and morality are not as straightforward as they seem on the surface, and they can vary greatly depending on the point of view and perspective that you take. Chiquita’s management struggles to make decisions that “will position the company on a positive trajectory and escape the negative legacy and administrative heritage that continues to saddle the company. “ (Schotter p. 14)
Root Causes:
There are a number of different root causes for Chiquita’s actions in Columbia that ultimately led to their conviction. One critical root cause was the unstable political environment that had been present in Columbia over the past six decades. While, Chiquita’s banana operations in Colombia pre-date the most recent surge of violence, beginning with its infamous predecessor, United Fruit Company, over a century ago it is this resurgence that has caused major issues for Chiquita that led to their conviction. Columbia has been constantly fought over by various paramilitary groups ever since the 1948 assassination of populist leader Jorge Eliecer Gaitan triggered La Violencia. (Schotter p. 7) Groups such as the FARC and ELN are insurgent guerrilla militia groups that have been fighting with and against each other for the better half of a century over land, resources, money, political power and overall control of Columbia. “Since the 1980s, the business of bananas in Colombia has been punctuated by gunfire.” (Schotter p. 6) Various militant groups, most recently the AUC, traditionally forced anyone under
References: Croft, S. (Writer). (2009, August 9). The Price of Bananas [Television series episode]. In 60 Minutes. CBS. Gettleman, J. (2013, October). Conflict Minerals. Retrieved from http://ngm.nationalgeographic.com/2013/10/conflict-minerals/gettleman-text Schotter, A., & Teagarden, M. (2010). Blood Bananas: Chiquita in Colombia. Thunderbird School of Management. Shaw, W. H. (2010). Business ethics: A textbook with cases. Belmont, CA: Wadsworth. Velasquez, M., Shanks, T., Andre, C., & Meyer, M. (1992, June/July). Ethical Relativism. Retrieved from https://www.scu.edu/ethics/practicing/decision/ethicalrelativism.html