Chiquita Bananas

1333 Words Oct 14th, 2012 6 Pages
Final Case Brief

Problem/Challenge Statement
Chiquita is blamed for the actions of two terrorist organizations that extorted money from the company. Victims and their families of the attacks performed by these two terrorist organizations are looking for compensation from Chiquita, claiming that the company is responsible for making those attacks happen. Chiquita has to make a decision whether or not to take the responsibility for the actions performed by the two organizations.

Key Facts/Background
FARC and AUC (two Colombian organizations currently designated by the U.S. as terrorist organizations) purportedly threatened Chiquita’s executives to hurt employees in the Colombian plant if the company failed to provide the payments
…show more content…
The reasoning behind this is the belief that the money Chiquita paid was indeed used in hurting those people. The victims and their families have right to demand justice. The question remains, of who actually should be brought to justice.

Options Analysis
Based on the current situation (company already admitted to paying the money, internal documents that the money did provide benefits exceeding the protecting of the employees were unveiled, threat of lawsuits), Chiquita has couple limited options, which are based on justice and duty.
First option is to come out now and take the responsibility for the actions of FARC and AUC. The law may not be in place yet, but this decision may show that Chiquita is standing by its promise to protect people affected by its actions. This option definitely addresses the claims of victims and their families—they will get the compensation they are seeking. Chiquita will face multiple lawsuits and will be harmed financially, which affects shareholders of the company. In this case the reasoning behind the payments is brought in place—whether it was for corporate gain or protection of employees.
Another option would be to refuse paying compensation to victims of FARC and AUC based on the fact that Chiquita did nothing directly to harm them. Moreover, they were protecting people by paying the terrorist. If the law holding the company

More about Chiquita Bananas

Open Document