Introduction The situation of Chiquita Brands International is serious. Bananas, the main source of revenue of Chiquita, cause an ethically questionable situation. Bananas are a very popular food in Europe and the United States because they is inexpensive and convenient. Especially the price of the fruit can only be provided because the bananas are grown in large plantations along the Equator. These large plantations cause social and environmental problems. In order to control the situation in Colombia Chiquita decides to pay paramilitary groups. Due to changes in legislation the ethical problems change to legal and political and thus become a big business risk. A decision must be made that will solve business and legal issues and will satisfy the situation in the country. Situation During the period between 1997 and 2004 Chiquita Brands International represented by the Colombian subsidiary Banadex S.A. paid a total of US$1.7 million to the paramilitary group AUC in Colombia. The purpose of these payments was the protection of their employees in a country that has become a source of violence and lack of government due to several problems. One part of ethical problem in this situation that the money represents a further funding of violent forces and the situation become rather worse than solved. A second and more difficult part is that Chiquita is an originator and promoter of the problematic situation. In addition, the change in the legislation adds a legal problem to the situation. The banana industry is a highly profitable business for large companies such as Chiquita, Dole, and Del Monte. In order to reduce the volatility of the business and control costs of the natural product banana the companies take various actions. First, ... ... middle of paper ... ...ered. Conclusion The proposed solution can convince on all ethical levels. First, the solution violates not relevant principles or standards of conduct. It would be even more positive when the public finds out about these activities, because it would then possibly give even more support and also other companies (e.g. Del Monte and Dole) would be forced to rethink. Second, in the long run Chiquita and its executives can establish itself as an honest business partner and have the basis for excellent organizational performance, because the actions can speak for themselves. Communication with all stakeholders could improve the outcome of the proposed solution. Third, all consequences of the proposed solution are positive. In the short term, the Colombian employees are preferred, but the long term all stakeholders benefit and the core values of the company are respected.
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The Brazilian acai berry has been a food staple for low income families for years and a cultural symbol for generations. This berry is vital in Brazil, where it is farmed and, until recently had a relatively small market. However, after an Oprah interview the demand for acai has become an international affair. The rising demand has created a free market; however the once inexpensive food staple has become too expensive for the low income families. This report will analyse the current markets advantages and disadvantages, followed by two possible government intervention models. The examined interventions will be export tariff and price ceiling.
Illegal drug trade in Colombia is the practice of producing and distributing narcotics domestically and around the world. As of 2012, Colombia was the world leading cocaine producer in the world (Neuman, 2012). Cocaine, marijuana and heroin along with other illegal drugs have become a big part of Colombians lifestyle and a major source of income for many people. Since the establishment of the War on Drugs in the late 20th century, European countries and United States have provided billions of dollars, logistics and military aid to the Colombia government to combat the illegal drug trade (Lilley, 2006). As of 1999, Plan Colombia has been one of the biggest movements towards Colombia’s biggest rebel group, the Revolutionary Armed Forces of Colombia (FARC). The movement was implemented as Colombia supplies 80% of cocaine to American citizens (Vellinga, 2000). The US Drug Enforcement Administration estimated that Colombia’s annual profit ranges between $5-7 billion from drugs smuggled into the United States.
Narcoterrorism has a long past in the history of Colombia, focusing mainly on the market development of one drug: cocaine. Colombia, with its arid tropical climate and lush land, is an ideal place for the sowing and reaping of the coca plant whose extracts are synthesized into the powder cocaine drug. As Colombian cocaine production skyrocketed in the 1970’s and 1980’s thanks to booming demand for the product in Americas, drug kingpins in Colombia began to wield immense power in the country. ...
Millies, Stephen. "How United Fruit Robbed and Killed the People of Central America." Workers World. 3 Oct. 1996. Web. .
The Amazon and Amelonado cocoa hybrid crop produces more cocoa seeds, has a lower gestation period, and has more than two harvest seasons (Boaher, Kwasi, Snijiders & Tolmer, 1999, p. 169). While this new practice produces a higher yield it is more expensive and requires farmers to use chemicals and new farming practices(Boaher, Kwasi, Snijiders & Tolmer, 1999, p. 169). Farmers social status is important “… in the adoption decision. Status is defined with respect to variables such as royalty, leadership and membership …high status farmers are expected to adopt hybrid cocoa because of the increased recognition the society will confer on them by maintaining their leadership role” (Boaher, Kwasi, Snijiders & Tolmer, 1999 p. 173). The main problem with adopting this new hybrid crop is the cost, because most cocoa farms are typically family run and small scale they are not able to afford it (Boaher, Kwasi, Snijiders & Tolmer, 1999, p. 169). While small farms can not afford this, big plantations are able to adopt this farming method and increase annual yield which increases the plantations wealth. This allows big plantations and companies to control the market and leaves little room for small scale farms to increase net profit, trapping them into a vicious cycle of
We need to test our actions against the following criteria is it legal? Does it meet company standards? Is it fair to all stakeholders? Can it be disclosed? A decision making process consists of identifying possible solutions and then considering which of these possibilities has the best potential of solving the problem at hand. To find an optimal solution for a problem, it is important to explore as many alternative options as possible. There are 5 steps in the decision process these are discern the ethical issue, Identify possibilities, determine impact on stakeholders, appraise against ethical criteria and select a viable ethical option. In the disclosure process one would need to explain their reason for the option chosen and if a person can do this in a public forum then they reasonably believe that their choice is ethical.
The other front of the battle of the “War on Drugs” comes from locating and shutting down the manufacturers of cocaine. Cocaine is manufactured from the coca plant, the drug’s main ingredient. When the government imposes sanctions on different nations for growing the coca plant, careful considerations must be made. Just like any other market, there may be underlying circumstances for growing the plant that are perfectly innocent to the illegal cocaine market.
... the world in coca cultivation, along with Columbia and Bolivia, and their production doubled in the 1990s (Lia, 2005). Terrorism in modern Peru has evolved from attacks by a collection of communist guerilla outfits with differing degrees of fundamentalism into utilitarian narco-terrorism, with the potential for anti-globalization violence. The evolution of terrorism in other parts of the world have taken a more fundamental turn with the rise of Global Jihadist, but Peruvians guerillas appear to have left the most extreme Maoist versions of their ideology behind. Hopefully this foretells of a much less violent future for Peru, even if there are still unresolved security problems. With the emergence of narco-terrorism, the future is more uncertain, and the trade-offs needed to separate terrorists from coca farmers are difficult to make politically and diplomatically.
This highlights that a core principal of economics is the decisions and choices to be made in order to manage limited resources. Furthermore, that microeconomics pertains to the behaviours that affect these decisions and choices made at an individual level. As demonstrated by the avocado industry recently, motives and variable factors for increases/decreases in supply and demand will not always be transparent to the consumer. Therefore, to have an understanding of the concepts of microeconomics and the market can elucidate the individual consumer’s decision making rationale rather than making
By the year 2000, the AUC had grown to include more than 30,000 combatants and had notorious members of Los Pepes (a drug cartel) in senior positions. The AUC had a goal to monopolize drug trafficking and production, and waged a campaign of brutal violence against anyone who stood in their path to include indigenous persons, trade unionists, human rights advocates, religious leaders, and other civilians. The AUC and other paramilitaries are responsible for the vast majority of the 70,000 civilians that are dead and the millions of forced displacements that have occurred since the beginning of the
Maple Leaf Foods Inc. is well known as a leading packaged food provider in Canada with over 100 years sustainable working. Its head quarter is in Toronto, but it operates across the North of America, the United Kingdom, Mexico and Asia, as well. Since its foundation, this company has expanded primarily by merger and acquisition activities. It owned 90 percent of Canada Bread Company, Limited, found in 1911. It was created by the merger of Maple Leaf Mills Limited and Canada Packers Inc. in 1991, and these companies consisted of subsidiaries. By providing the highest quality, nutritious and innovative products to excess customers’ needs, Maple Leaf Foods is pursuing its vision to become globally admired food processing firm. It was gotten honor awards such as “Product of the Year 2011”; “Canada’s 10 most admired corporate culture”; “Best New Product Award”; “Canadian Family 2010 Food Awards”. Its total asset of 2013 was $ 3,599,092, compared with $ 3,243,696 in 2012. Net earnings of this enterprise were $ 512,163 in 2013, compared with $ 96,562 in 2012. Although, the company faced challenges caused by the increased price of raw materials and effects of macroeconomic issues; it still keep its values and be willing to change for sustainable achievement in the future. As a result of changes, Maple Leaf Foods Inc. is making an agreement to sell Canada Bread Company for Mexico's Grupo Bimbo with the price of $1.83 billion in cash in order to focus on its meat products business in 2014. The company financial report indicates its focus in 2014 with five main points. First, pricing actions to address higher ...
The commodity chain for coca/cocaine is vast and complicated. Coca frontiers for illicit export spread massively into the deep jungle of the Huallaga Valley and Bolivia’s Chapare. This is where most coca plants are grown and harvested, and occasionally transformed into coca paste. In the past, most of the raw coca leaves or coca paste was transported to Colombia where well-located entrepreneurs, under a weak state, consolidated as the core middlemen in this trade. Colombians refined coca and marked up the prices of the Bolivian peasant product. In the 1980s, Mexico became a transit point for cocaine heading to the United States and other Western nations for sale by Mexican or Colombian suppliers (Gereffi and Korzeniewicz 1994: 195). However, due to the illicit and clandestine na...
Ecuador is the biggest fine or flavor cocoa exporter of the world. Since chocolate is a billion dollar industry, one would think cocoa farmers would be benefit fairly. However, when the production chain is analyzed, one can find large differences between the working conditions of cocoa farmers and the chocolate factory employees. Still in the 21stcentury there exists a large amount of child labor in cocoa producing countries. Meanwhile in the chocolate factories (which are mainly located in developed countries), the transnational corporations boast about their compromise with ethics, particularly human rights and environmental protection.
Organized Crime Organized Crime is non ideological. It perpetuates itself and is typified by the motivation to use illegal violence and inducement. It is focused in the division of labor, is monopolistic and directed by precise rules and regulations. The study of organized crime is a multidisciplinary attempt. Organized crime, from a political scientist’s viewpoint, can be an interesting object of study in a variety of respects. First of all, organized crime is a construct that characterizes and legitimizes criminal policy. Secondly, organized crime may be conceptualized as an aspect of politics where crime networks and power elites overlap or where organized criminality turns out to be an instrument of politics. Thirdly, organized crime in the sense of criminal milieu as well as criminal subcultures can be interpreted as primitive states in their own right. Organized crime is a methodical criminal activity for money and power and applies this definition meticulously to the rich and powerful. The conventional perceptive of organized crime, which centers on gangsters and Mafia-type organizations that penetrate and corrupt the national and even international economic and political systems, is inadequate. Organized criminal activity was never a severe danger to create or developing economic and political power structures in the United States however more often a fluid, variable, and open-ended phenomenon that complemented those structures. Thus we can say that politics, money and power are important in the study of organized crime. William Chambliss defines the importance of politics, money and power in the study of organized crime on his book “On the Take” and “Power, Politics and Crime”. On the Take illustrates the level and intri...
The purpose of this paper is to be able to provide an example of a recent scandal about usual unethical behavioral occurrences in Mexico. This paper aims at addressing the principal factors; actors involved, consequences and outcomes of unethical behavior, it also analyzes the impairment done to workers, companies, oil Mexican industry and the Mexican government. This paper is an attempt to shed light among Mexican citizens and provides an international perspective of the white-collar crime perpetrated by Oceanografia, PEMEX and CitiBank Inc. In addition, implications and penalties faced by each person engaged