Chiquita: Doomed If We Do, Doomed If We Don't

In: Business and Management

Submitted By elikyuyu
Words 1999
Pages 8
University of Caloocan City
Camarin Campus

A business case analysis entitled

“Chiquita: Doomed if we do, doomed if we don’t”

Shane Marie Diesta
Christian Balagtas
Eric Jay Etoc

II. Recommendation Statement
Our team recommends Chiquita International to withdraw their segment in Columbia should the threat of the AUC puts the life of the employees and the compliance with the government at stake.

III. Background Information
Chiquita Brands International, Inc. (“Chiquita”) ,along with its subsidiaries, is an international marketer and distributor of bananas and pineapples sold under the Chiquita and other brand names in 70 countries, and packaged salads sold under the Fresh Express and other brand names primarily in the United States. With over twenty six thousand employees across six continents, the banana company faced one of its red hot scandals, right in Columbia.
Chiquita admitted that it had been paying for years to the violent, right-wing terrorist organization United Self-Defense Forces of Colombia – an English translation of the Spanish name of the group, "Autodefensas Unidas de Colombia" (commonly known as and referred to hereinafter as the "AUC") in exchange of AUC not giving harm to Chiquita’s employees.
The AUC had been designated by the U.S. government as a Foreign Terrorist Organization ("FTO") on Sept. 10, 2001, and these designations made it a federal crime for Chiquita, as a U.S. corporation, to provide money to the AUC. In April 2003, Chiquita made a voluntary self-disclosure to the government of its payments to the AUC, giving rise to this investigation.
"Like any criminal enterprise, a terrorist organization needs a funding stream to support its operations. For several years, the AUC terrorist group found one in the payments they demanded from Chiquita Brands International. Thanks to Chiquita's cooperation and this prosecution,…...

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