Chiquita Banana Case Study

791 Words4 Pages
From the case, we saw that the executives of Chiquita Banana in Columbia chose to pay the AUC for protection from the FARC. The US government put AUC on its list of terrorist organization on September 2001. Chiquita brand international is a pioneer in the globalization of the banana industry, where bananas are not only a serious business, but it is a representation of economic, social, political, and legal difficulties. From the perspective of Chiquita’s Columbian subsidiary, Banadex S.A., they first began funding AUC in 1997 after receiving threats directed at its property and its employees. Chiquita was sending money to the AUC roughly every month in order to save their employees and property. Being in charge of the business, it was the responsibility of the company to put their employees safety first, and thus I feel they were in the right when they started making the payments at first. This was not a safe time because during the period of mid 1960s, Columbian civil war and armed conflict were very prevalent in those areas. There was the emergence of powerful drug cartels, which also increased the intensity of the conflict. Moreover, there was the presence of FARC, which is a revolutionary guerrilla organization and were involved in illicit and violent activities like extortions, bombings, kidnapping, as well as attacks on political and military goals. AUC promised Chiquita Banana the protection from the political and war world around them. It made sense at that time

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