Chiquita Banana Case Analysis

Chiquita case analysis

1. What is going on here? Description of the firm or organization and the situation or issues it is facing.

• Chiquita banana is a company that export banana from different countries, one of them is Colombia

• The politic condition in Colombia was rough, there are many guerillas people that insist to be paid in order to not kill any employees of Chiquita banana’s farm

• Chiquita banana then decide to pay the guerillas $2million in exchange of their employee’s safety

• This guerillas have killed hundred of people, and the victims family are trying to sue Chiquita because they funding this guerillas

2. Who is the decision-maker? What is their position? What are their responsibilities?

• The decision maker in this situation is Chiquita’s executives

• Because they are the one who decide to pay the guerillas in order to keep their business alive

• The executives claim that they are not the only company who bribe this guerillas

3. What is the problem? What are the issues? Why is this situation a problem?

• The problem arises when the government decide to determined the guerillas as terrorist

• Because Chiquita is paying money for the terrorist, their act considered as helping the terrorism

• Chiquita’s decision to bribe the terrorists is considered as unethical for public

• Chiquita feels that they are trapped in the situation and do not have a “good” options, either paying or lose their employees

4. Why is this happening? What are the contributing factors—root causes—of this situation? What must be resolved? Decided? How urgent is the decision?

• Chiquita claimed that they miss the government’s announcement about the guerillas being terrorists, thus continue to pay for 2 years more

• Chiquita attorney then advised to turn themselves in to the Justice Department

• Money that Chiquita paid not only make their only safe, but also funding the terrorists to buy ammunitions and killed other people

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