Case Synopsis: Blood Bananas

I. Case Synopsis- Blood Bananas: Chiquita in Colombia

-Chiquita Brands International trailblazer in banana industry globalization.

-Chiquita is successor of United Fruit Company

-1903 revolutionized banana trade.

- Used refrigerated ships.

-Largest Latin American employer for years.

-1970 merged with AMK Corporation became United Brands Company.

-Eli M. Black was in charge.

-1975 Securities and Exchange Commission discovered 1.25 million dollar bribe.

- An agreement to a Honduran official in exchange for tax reduction on exports.

-1985 Carl H Linder Jr. took control.

-1990 name changed to Chiquita Brands International.

-Chiquita and banana industry had many years of unpredictability.

-Making payment to FARC (Revolutionary Armed Forces of Colombia) and ELN

(National Liberation Army) both regarded as terrorist groups.

-Later protection payments were made to AUC (United Self Defense Forces of

Colombia) totaling over 1.7 million dollars.

-1998 Cincinnati Enquirer published “Chiquita Secrets Revealed.”

-Michael Gallagher and Cameron McWhirter accused company of mistreatment of

workers, pollution, cocaine transports, bribery of foreign officials, avoiding

national laws, denying unionization of employees.

-Publically forced Chiquita to reevaluated corporate responsibility.

-Established Core Values: Integrity, Respect, Opportunity, and Responsibility.

-2000 Robert Olson general counsel for Chiquita was aware of bribery payments to

AUC.

-Reported findings to audit committee.

-Decision was made by the directors to continue payments.

-2001AUC was added to list of terrorist organizations.

-Chiquita claims to have not seen news coverage of this publicized event until

Feb 2003.

-Feb2003 Olson contacted Laurence Urgenson, outside legal counsel.

-Urgenson told Chiquita payments were illegal and to stop them....