Chiquita Brands International and its leaders learned a very hard lesson about paying off terrorist groups in order to protect their employees. No place in the last 25 years has been dangerous for companies as Colombia, a country that is finally beginning to emerge from the effects of civil war and narco-terrorism. In 2004, Chiquita voluntarily disclosed to the U.S. Department of Justice that one of its subsidiaries had Colombian banana protection payments to terrorist groups from 1997 through … Read more »

Chiquita Brands International and its leaders learned a very hard lesson about paying off terrorist groups in order to protect their employees. No place in the last 25 years has been dangerous for companies as Colombia, a country that is finally beginning to emerge from the effects of civil war and narco-terrorism. In 2004, Chiquita voluntarily disclosed to the U.S. Department of Justice, that had one of its subsidiaries Colombian banana protection payments to terrorist groups of 1997 to 2004. The Justice Department began an investigation, which. On the role and behavior of Chiquita and some of its officers in this criminal activity Then Chiquita entered into an agreement that has ever condemned them the dubious honor of being the first major U.S. company in dealing with terrorists and led to a fine of U.S. $ 25 million and other sanctions. To make matters worse, the industry has been increasing pressure on the purchasing power of retailers, large changes in tastes and preferences of consumers in Europe and the imposition of an “onerous tariff” on companies that bananas from Latin America come from. In this sense, reflects Fernando Aguirre, Chiquita’s CEO since 2004, as the company had arrived at this point, and what had been done to correct the course so far. He presented major challenges to the company’s competitive position in this dynamic industry. What would it take to position the company competitive in a positive way? Would this be possible in this industry and the business climate Chiquita faced?
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from
Mary B. Teagarden,
Andreas gravel
Source: Thunderbird School of Global Management
16 pages.
Publication Date: Nov 11, 2010. Prod #: TB0245-PDF-ENG
Blood Bananas: Chiquita in Colombia HBR case solution