Chiquita Banana Essay

3057 Words Mar 28th, 2012 13 Pages
What is the responsibility of a business or corporation? Is it to meet stakeholder expectations and follow legal guidelines, or is there a higher responsibility? While Milton Friedman asserted in his famous essay that “the social responsibility of a business is to increase profits,” it can be argued that companies also have higher moral responsibilities. The question in each ethical dilemma is, “To whom do we have a moral responsibility?”

In this module, we will analyze the Chiquita Banana terrorism case and apply legal, ethical, and international perspectives, as well as analyze the managerial and public policy implications of Chiquita’s actions.

•Background - Chiquita Banana Terrorism Case
•Legal Perspectives
…show more content…
(“the court”) Judicial Branch Itself. The two sides had varying perspectives on some of these factors.
1.The involvement in or tolerance of criminal activity—Even though the payments made were not explicitly illegal in Colombia, part of the Foreign Corrupt Practices Act stipulates that it is illegal to make payments to groups designated by the US Government as terrorist organizations. As the AUC was designated as one such organization in 2001, there was not much disagreement that the payments were illegal. (The Special Litigation Committee of Chiquita Brands Internationl, INC.'s Motion to Dismiss and Incorporated Memorandum of Law, 2009)
2.The prior history of the organization—This was not a big issue; however, both the SLC and the sentencing court noted that Chiquita had made payments to groups with notoriously terroristic intentions such as FARC since the 1990’s (The Special Litigation Committee of Chiquita Brands International, INC.'s Notice of FilingJoint Declaration of Howard W. Baker, Jr., William H. Camp and Dr. Clare Hasler, 2009).
3.The violation of an order—This was by far the biggest point of disagreement between the SLC and the court. On April 24, 2003, shortly after learning that AUC was a paramilitary group, Chiquita executives met with representatives from the US Department of Justice (DOJ) to disclose the payments

More about Chiquita Banana Essay

Open Document