Blood Banana

711 Words Jun 1st, 2012 3 Pages
Blood Banana
Strategic Management 581

Blood Banana

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
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Chiquita Brand values integrity and so it should be very transparent with its workers about the reality they are dealing with. Employees who are not comfortable to work under such conditions should be free to leave, with an appropriate severance package to help them in the transition. The company should also hire a security team with the money they were suppose to pay off the AUC with, even if they can’t afford the highest protection. This is to provide the best possible environment for the existing employees until the company finds a better solution.

For the long run, Chiquita should not operate in a country with such corruption and unrest. It should immediately begin to review its plans and re-strategize. It can either explore moving to another location where it can start new banana plantations. Neighboring countries in South America like Brazil, Ecuador, Costa Rica and Guatemala are some of the top producing banana nations in the world, even higher than Columbia. Or it can choose to expand one of its other subsidiaries, so it can recover its lost production from Columbia.

Chiquita should gradually start moving out of Columbia as soon as possible. It should also offer its employees a job wherever they decide to relocate. The employee can choose to move or settle for a suitable amount. Wherever they go, the company should provide a descent and safe environment for its workers. This is the cost of being ethical. It not always

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