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Chikita Banana - Essay Example

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Since its inception as United Fruit Company, Chiquita has been engaged in a number of unethical business practices. These included payment of bribes to Latin…
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Chikita Banana
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Download file to see previous pages In pursuit of better business climate including, for instance, lower taxes, Chiquita engaged in payment of bribes to government officials. For instance, in 1975, it was disclosed that the company paid a Honduran official an excess of US $ 1.25 million bribe in order to reduce taxes paid on banana exports (Schotter and Teagarden 5). The company also employed underground tactics to discourage governments from developing infrastructure so as to retain a grip on transportation monopoly.
By promoting coups against perceived hostile governments, Chiquita perpetuated injustices borne out of disrespect for sovereignty of the people. In doing so, the company’s corporate interests got entangled with the foreign policy of America. For instance, in 1954, the directors of United Fruit Company lobbied the U.S. government for a coup in Guatemala on the allegation that the incumbent government was rooting for communism (Schotter and Teagarden 9). This was undertaken to conceal the company’s fear of losing 40% of its land owing to supposed agrarian reform and new labor code.
United Fruit Company was notorious for subjecting its farm workers to long working hours in dangerous conditions. Prior to its restructuring, Chiquita engaged in unsustainable wide scale cultivation of bananas by allowing agrochemical runoff water to flow into water sources, as well as massive deforestation of tropical forests to create land for expansion (Schotter and Teagarden 6).
Chiquita employed guerilla tactics in order to retain its market share such as controlling the distribution of banana lands. The uncontrollable appetite for land and market dominance made United Fruit extend its reach and influence over governments and lives of its employees. United Fruit extended its influence to prevent governments from distributing banana lands to locals wishing to have a share for the banana business. The ...Download file to see next pagesRead More
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