the corporate social responsibility story of chiquita

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The Corporate Social Responsibility Story of Chiquita GuiléAcademicAssessment HEC Lausanne

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GuiléAcademicAssessment
HEC Lausanne
Dr Dorothea Baur Dorothea Baur is a CSR researcher and analyst and a lecturer at the Univer- sity of St. Gallen. She has previously taught and researched at ESADE Business ^ Eh ^ , - , ^Z ^Z
Mrs Doris Rochat-Monnier ZD & h>,hE/>t D &'^ Z ^ &
Prof. Guido Palazzo 'WW&- h>,hE/>, /D /E^ / d - ^, , Y :D^ DZΘ^'W Dt, ^Z- ^ss, t,K&>t^hE- lity related topics.
HEC Lausanne
/ , .....................................................................
/ s .................
/ W' ................................................................... 41
II. Stakeholders .................................................................................................................................................................................................... 57
// 'Z ......... 58
// ^ ........................................................
// W ............................... 71
// ...................................................................
III. Managing CSR .............................................................................................................................................................................................
/// D^ZE'K
^Z .................................................................................................................... 114
/// D^Z> ........
IV. Reaping rewards from CSR ............................................................................................................................................................... 147
/s D^Z ..................................................................................................................... 148
/s DZZ ..................................................................................................... 155
/s ^Z ............................................................................................................................................
> .......................................................................................................................................................................... 179
Table of contents
7'
d^Z / ^Z scholars alike. The study is based on an ‘open book analysis’, in which Chiqui- ta opened their doors to a team of dedicated and independent experts who carried out an assessment of the company’s CSR policy. d &'- d ^Z d ^Z -
Conclusions
^Z ^Z ^ /
^Z ^Z, ^Zd^Z&- ^Zz& &
d - - d- E -
4. / - dZ
8 d^Z^
- -
- d E'K t Z - ^ZZ- rest Alliance.
^Z ^Z ^Z
/^Z ^Z- D - ^ZE ^Z
9'
'^Z ^Z z ^Z ^Z ^Z
Z^ZZ^Z- z K ^Z K^Z& - ^Z ^Z
K ^Zd ^Z ^ZE- ^Z ^Z D
11. D ^- ^ t
K ^Z ^Z ^Z- / - ^Z
/
'
/- dtht t - , t
d d s- t- /
d E'K - /- /
d D / D ^Z
/- sis”, whose methodology we will describe below, and which we conducted in &'
t - ^ZdE'K Z ^Z t ^Z-
14 d^Z^
t- ^Z
Methodology and goal of the study
d ^Z- t ^Z expressive story ^Z /- Kcontextualised analysis ^Z
dcomprehensive- / customized approach- ^Z
replicablet ^Z - ^Z ^Z
dgovernance &' &- '
&'
15'
dgenuineunprejudiced in-
terest^Z &' strong commitment
^Z ^Z
d^Z- d ^Z d d of the evidence
- ^Z- ^Z/
'ÄÙ®ÝÙ®Öã®ÊÄÊ¥ã«ÙÝÙ«ÖÙÊÝÝ K
1. ^Z- K^Z- d ^Z&'
t /-
t E'K d -
d^Z^
Structure of the study
d^Z-
1. Premises W ^Z ^Z ^Z
/
Historical premises:d ^Z d - ^Z
Economic premises: ^Z &
W- / ^Z
2. Stakeholders t
4. t - d d ^Z - E'K
5. t - &'
17'
- dE'K ^Z ^Z/ ^Z
' - t W^Z
Suppliers: ,- ^Z
Employees: - ,t-
,- -
3. Managing CSR /^Z dexternal dimension E'K ^Zd
d internal dimension ^Z - ^Zt ^Z^Z ^Z
&sZ >^Z - ^Zt ^Z ^Zt ^Z ^Z
5. Conclusions across issues and stakeholders /
18 d^Z^
^Z/ ^Z
^
tbananas &
D ^Z- producing, trading and selling
bananast^Z D ^Z .
/ - Europe.
d not an audit ^Z- d D- understand rather than recount ^ZK & - pelling story.
: & ^ 'K - K>sW'Θ/- ZKDZhave d ^Z / ^Z z ^Z / ^Z ^Z
I. Premises of Chiquita’s CSR
d^Z^
I.1. Historical premises:
past
Abstract
d CSR engagement today. t ^Z/ ^Z z - t-
/ÄãÙÊçã®ÊÄ
d- ^Z d ^Z present- / W , d- ^Z , ^Z
&- ''DK,z^ WE h&- :1 - ,th h&
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/ / ^Z /WWd - ^Z
t ^Z - ^Z-

^Zd - d-
- d t - h&'- h& , t
& ^Z K^t ^Z h&
d^Z^
d - ', / d & d /-
d^Zt - 4 & >& - Ks/ ZKZ- -
, ' ,
^Z- d- ^Z 5t
d - resentments
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,d- rather than resent- - // D
/- ^Z
/ÃÖ½®ã®ÊÄÝ¥ÊÙã«ÖÙÝÄã
d - ^Z
- / ^Z d ^ZD
, - - ^Z
d ^Z - s
d^Z^
& ^Zd ^Z // ' // // - d ^Z ^Z
KD- /D/ ^Zd ^Z 7d ^Z ^ E'K Z' /s D^Z
/ ^Z ^Z / ^Z - - D
Lessons learned
- ^Z W
-
K /the past in
Our analysis shows that in contrast to many other companies Chiquita does not deny its dark past.
'
^Z- /- strate a in the past.
ÄÄÊãÝ
1 W : ^''Z. >
DD- h& Business History, 50
^h&,^- ^Z
4 Kd^
/h to ,>d- in Central and South ^
^ :W'ΘWZ,Zt Paper.
W W ^ΘZD K case. W
d^Z^
I.2. Economic Premises: s
in the Banana Industry
Abstract
In this chapter we clarify the premises under which Chiquita operates its CSR. d ^Z/ ^Z&D - ^Zt ^Z ^Z-
/
/ ^Z tt t ^Z ^Z
2. The banana industry
ÙÊÖ«ÙãÙ®Ýã®Ý
- d D- - t EY ^Z d
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h^ d z
Σ 1d d,D D d W- ' D ,- W d >//- & Z ':^W^Z
/ d t d - //
, ^
d Z / d
As one of the biggest ba- nana companies in the world, Chiquita’s busi- ness model relies on in-
d^Z^
W d - graphical factors.
DÙ»ãÝãÙçãçÙÄò½ç«®Ä
t / & D& E, / 4
/
&d
' d Z Retailers
^ d ^Z ^
d - , h^- d - EY Z^ZD suppliers.
'
K>
/ ,:d ^ t- d
K>not Z - ///D^ZZ //^
d z- D5
^
Z DEd DE
t& ^
D&/ d W z - -
CEO Lonergan empha- sises that not owning - tempt to deny responsi- bility.
d^Z^
-
, ^Z &t & & & d &D&- /E'K E ^Z& standards and thus is under pressure to deliver proof that their approach is
&®ÙãÙòÝ&ÙdÙ
d
d t ^ ^ - D- & 7
d & 8d &
d& Fair-
d
t&- for fairness is in fact for market share.
'
&W 9
z &D ^E'K
t d
d &dh^d&h^&>K -
& d- &: & - 11
- &&- less fair.
- it. , - - d- &
/-
& that their approach, i.e. & - theless fair.
d^Z^
- Rainforest Alliance /&d ^ '^W'^W ''
dZ
d -
&Z^
&Z higher price t dZ- dem-
powered z - ^E
E&- ^
z D z - - d
d //^
/ &
'
' based on market mechanisms
WÙ®ÝÄÖÙîçÃÝ
& /- /s D- ZZ / td- 'h< d - K 14
d- Z
^^/ Z- &K, Z
d^Z^
15d Z
d &- Z '
&Kgene-
rally &/
17
/
& - K 18

®ÝãÙ®çã®ÊÄÊ¥®ÄÊýÊĦã«ò½ç«®Ä
- Ez Z- & K d&&K- 19
, K K
^E'K & ^
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& price.& h<- Zh<
/ Ez&- ^d /
& d in the past years
Table 1: Chiquita’s Net Income 2011-2013

E
/ ^Z^Z d^>
,,D -
d ^Zd ^Z-
4. CSR in a low-margin business
/ ^ZK& t
d- ':^Z
Taking into account the fact that Chiquita decade, we need to ask how CSR can be af- forded in a low-margin industry.
d^Z^
d^Z-
EY^Z^Z d
D > >ZD ,
,
/ ^Zt
, h^ -
:sW W
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d ,Z
d ^Z
tK- ^Z ^Z ^Z / ^Z
d- ,/W Z^Z ,
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^Z, ,^Z-
d^Z ^Z - & ^ZK> ^Z /^Z ^Z
t^Z ^Z - d
- ED Z K /h& /
- ^Z ^Z :s W^Z
5. Conclusion
d ^Z - -
& d
Despite Chiquita’s un- ^Z which make them the CSR leader in the indus-
d^Z^
& & / d d d & d
d- ^Z- - ^Zd^Z ^Z t t d E
K^Z ^Z ^Z
Lessons learned
^Z-
&- ^Z
- tably confront the ques- economic tensions with the demands of CSR.
'
d-
^Z &d& - Z&
& & .
& Z D
&d ^Z-
^Zd- ^Z D ^Z - porate culture.
ÄÄÊãÝ
1


4
5

7 Zt&dW E sW :
8
9
d-
d^Z^
&Z
11
d& Z Ecuador.
, - d /s
14
15 d^^ /Z

17
18 d^^/Z
19 /

^>
Z>d/h&K>^/- />KtWE d / >K' ^

Abstract
d company’s CSR./- / t- t h^K-
«®Øç®ãÝÖùÃÄããÊãÙÙÊÙ®Ýã¦ÙÊçÖÝ®ÄʽÊî «ÙÊÄʽʦùÊ¥»ùòÄãÝ
/ W'
D
&Z &Z


&Z
&Z hh

hh^:
d^Z^
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K E- >^E / ^Z- - - hE'W
^ >s D / hh &Z&Z-
- - - D

h^- :

h^h^ h^
W^>
EΨh^ :^d:^d
h^& d
Like Shell in Nigeria, Chiquita has been - ment in Colombia.
'
- - - 1 th- d >
t >s h dW &Zh h h

, h , ,- , h&Z D >
d- &Zh / 4 According to George :^ZW- há- ^> &Zh- t-
/ - money» to two major players in the Colom- years.
44 d^Z^
h^^h^:- h h^ 5z h / ^t there is no conclusive evidence against it.
K & - : h K:not explicitly K:d K:^ K:^ ^>
t h^: / - &W&Wd & h^ /D h^' h^h^E dh^ &:d- d t h^
& h^- -
45'
moral^ d /- Wd h&Z h7
Z E'Kt'^ ^< ^< h- - h leaders.8Z z^/EdZ/E- 'ZK 9 ^/EdZ/E'ZK ^D- ^/EdZ/E'ZK K
z '^ K^ K^ &Z:
Kh^ K- - ^>11/ h^ K &
/ ^ - Chiquita could dem- onstrate that it did not cold blood”.
d^Z^
W&W^>- &W
d^> - ' h^ - , &^Z h^
ò½çã®Ä¦«®Øç®ãÝÖùÃÄãÝ¥ÙÊÃÃÊÙ½ÖÙÝÖã®ò
t- - - ^>K d & h^h- & W-
D defending itself against criminal complaints, is - gal decision from a moral
47'
& - h &Z - ^> d / / t d t
d- t t /
h the governmen/ ^> DZt- hE- K- D - / ^ ^ d^-
leave the country - making
d- that the life of Chiquita managers and workers was at risk.
48 d^Z^
their dilemma public Z^< - Z z - - ^ D
^ to protect their op- / - & D d
, - / W- ^- / - d d- - d dhá t- K t Z ^-
d which would indeed - mely d was not considered by Chiquita.
49'
/- dhE' W,Z K' D- dhEW:Z- /'W - 'WW- W -
^ /- t - t - d d

h^h^ d / d - &
d d/' -
/- of making the payments by looking for help. D try to hide.
d^Z^
^>, - 14
- d- t hEWZZ&'- W - d' W - D 15
h^ h^' h^ - d d- :^d:^d :^d - Ψd ^Z //'
t t- h^h^ / há and Santa D^> - h^>z Ψ^> d violence.17h d- -
& Z
51'
/ E , D
ò½çã®Ä¦«®Øç®ãÝø®ãÝãÙã¦ù
^> d - / response.18> d- ^>, ^> ^>/
- d - ^>t - ^> K: h ^>z ^> K:- h^>t ' > h^ D-
once it became clear that the legal circums- tances were forcing them to do so if they
d^Z^
,- d
Z - d 19 or even
d /- Et
K - d - - ^Z -
d- /& /&// /& - ^/EdZ/E'ZK d /EdZ/E'ZK /E /EdZ/E'ZK rights.d Z
d / z -
'
h returned to their ancestral lands.
d / / & K- t t- t- K D /
Lessons learned
dpaying - in good faith. Zaintain standards such as Rainforest Alliance cer- ^.
h^
h^- legal compliance programs

Our analysis shows the complexity of decision d is no doubt that paying itself immoral. It might, - lable.»
54 d^Z^
h^ . , contradicted d
h^ W h^
d. &- :^d&- ^Z
ÄÄÊãÝ

>>Z dh^

/
η


D D/ZEZ- //D& E^Θ/- ts^s^-

d^> - / /

dKW' Palazzo.
55'
ZZZd ss ,ZWDK ^- ^K- ZZZ
Z>d/Z>tE zEzhW


d , /^W
dt D>>/-

/
> >Z dh^
D D/ZEZ- //D& E^Θ/- ts^s^-
/ ^/EdZ/E'ZK E

II. Stakeholders
Abstract
K^Z Many - / -
/
^Z d - / D , D d- ^Z-
,/ ^Z- - - d
, -
// 'Z rule of law, tax paying and responsible lobbying
59'
/,W/WW/ ^Z - ^Z ^Z
ZÝÖã®Ä¦ã«Ùç½Ê¥½ó
z ^Z d- - ^Zd &W&W ^Z
ZÝÖÊÄÝ®½ãøÖù®Ä¦
W- D- d K - 1t
Z ^ d' d ' h^ h^
d &D
Chiquita has made legal compliance part of the
d^Z^
/h^
ZÝÖÊÄÝ®½>Êù®Ä¦
> d ^ Z - K^Z / ^Z,
d t / t W- d W- 4
E & h >- d tt// tdK5
/ :^d:^d - /WW Ψ d- :^d
d - trically contradicts the essence of CSR.
'
D - 7' K :^d / 8K h^ W
ÊĽçÝ®ÊÄ
, - d - ^Z/ :^d
^Z W DZ t ^Z - W ^Z ^Zd d d ^Z
Lessons learned
^Z -
- bates around Chiqui- ta’s CSR and the way it discussed separately from each other, the antagonism between threatens to harm the Chiquita’s CSR engage- ment.
d^Z^

& D h^W- t
Z lobbying.
E h >
/- h^ t - -
- E^ZW- to t ^Z
ÄÄÊãÝ
h^

Θ
DtD,ZE

Abstract
d ^Z Therefore, in this chapter, we ^Z- t & ^ - t -
/
d^Z E> - E - t- d ^Z ^Z
/W - d ^Z d ^Z
II.2. Suppliers: Contracts and
d^Z^
t d & - ^ / Z
2. Contracts
- / W - EYZD^ZK-
- K h ^^ d
D Z ^ -
- pendent producers’ are highly dependent on Chiquita and that their than those directly em- ployed by Chiquita.
'
d &KZEE- Z producers.1 dZKZE ,d KZE
d dd- - d dd & d
, d Group4 ', d- /E ' - ted price in the contract has increased every year since then.
d d :d-
We found that under certain circumstances, Chiquita can in fact be rather than disempowe- ring for independent producers.
d^Z^
- 5d d d
&,- According to one inde- /Z,KZ- E/ , d ,,
d«ÝÖÊãÃÙ»ã
t d d 7 d ^ Ed /
d^Z t - -
Despite these success stories, not all suppliers contracts with Chiquita.
'

d - & 8 &' E- - , ' 9
^& - ^ - ^Z- D dZ- - ^^Z ^Z d Z Z D, ^Z /^Z Z':Z-
^ D &/ Z
dZZ ^Z- dd
d^Z^
ZD /^K z ^ > Z // , d- Zh^t- d & d
K,d- , ^Z
d Zd ^ED- ^ / z / EW
4. Conclusion
t - t Z d
d - literally lock-in their suppliers in 10 years contracts with no -
'
^Z Z
d- Z d d
E- ,
Z -
Lessons learned
' ^Z
d ^Zd- -
- A ^Z - ^Z
^- , -
- Z-
d^Z^
/ t -
&
&
ÄÄÊãÝ
KZEZ-
d - d
^
d'- d

-
Z'/EWd^ d^h^Y-
&,:&& dhW
&

Abstract
- d d & t d E-
/
d - D>ZD>Z/Z- Z EZ/ DE , - other industries.
z - -
// W being and empowerment of workers
The fact that its opera- regions means that se- curing the well-being of workers and their families is a more cen- tral responsibility chal- lenge for Chiquita than for companies in many other industries.
d^Z^
z K
d -
& t^^ ,^- ,& - Zdh &tZ
t
d - D D h ,Z-
d
zt d ^/ - ^^/
a decent life? This ques- debate on corporate responsibility across many industries.
'
t^Z / W d ^Z/ z^Z
Z ^
z ^ Z KWDD W KD
& -
^ K
/ / & ,W t d W,- d d-
«According to our ana- lysis, at least in the past two years Chiqui- - in the countries where
74 d^Z^
t¦Ý®ÄÊÝãZ®,ÊÄçÙÝ ÄWÄÃ
Z and accordingly pays the highest , ^ E poorest in the country.
K Z - Z K Z Z h^h^ dZ h^
z^Z - Z - Z, K- d
/,- d , / DZ&K- t , &D > > ZD , D - , - ,
75'
d D ,
/W d d - K Wt K :s' W W , -
K E d - / , & Z ^K ^ ^K dZ / h^- d
d / - W &
K - mated aspect of the de- bate on wages cropped E if people do not know how to handle their personal budget.
Chiquita has started programs in order to en-
d^Z^
tÊÙ»®Ä¦ÊÄãÙãÝĹÊÝçÙ®ãù
d K d- d- ZZD - ,'ZW d D&/ - Z
Z d d D&/& ,>- - , ,
/Z d d dZ / ,W'
D&/ - ,- ^ - ployers.
77'
ztd- Z - d ^d z d D d E d / / 1 .
^ is nott /h&/h&t d - - ZD>
d- / d t K , Z d
The system of serial contracts is legal and in accordance with workers’ preferences, - goodwill of the compa- ny to re-employ them,
78 d^Z^
Health and Safety
/ d - / - .
^ t ,
KçÖã®ÊĽ,½ã«Ä^¥ãùdÙ¦ãÙÊ
d d t Z ^E - - d
Decent working and only depend on wages. If workers risk their life at work, wages are put
79'
K> , dd - d
t - //d- & d
- - ^ d d
,ÊÄçÙÝWÙÊò®®Ä¦ÝÝãÊ«½ã«Ù
/Z /W d WW /dZ- ,
EYZ^ZD ,>>
CEO Ed Lonergan’s en- of health and safety is outstanding. He is owes it to the families of their workers to send their employees home healthy. The manage- d - gress is documented twice a year.
d^Z^
dZ t - th d - E d d>>- , dh^ / dh^ > > / h^, d d
' >>dK^Z d - / D / - D>>ZD ,- d ,
/ & -
81'
h^ ,/ />> d
Housing: Encouraging Home Ownership
,h, Z/- & t /- K - - Z Z d & - K & dEYZ^ZD K- - K - s
d - ,/, D dZ> >^/dZdZK,- 4&Fundacion para
Housing is a basic need acknowledged in the h of Human Rights and as such should be af- fordable as part of the
One could argue that se- employment made wor- z the chance to become homeowners their de- pendency on Chiquita decreases because they do not lose their acco- their employment with Chiquita ends.
d^Z^
^s^d & 5
'& dE ^: /^
&- d W , EYZ^ZD-
'& / W , ' / '&
Zdh& tZ
d- d / > - - /&/&/h& /h&K>^/ >hd/& E'K ^Z7 /&-
company in the bana- acknowledge freedom - sent only company in the sector to sign an In- & /h& / h &
'
8- /h& K>^/ ^Z/& ^Z- D /h&K>^/t d ^ZZ
E/& / / d, d d- - - D & ,' :^^ZW
D /& K /& 9 ,'WZt
&d,, ,d Z comités permanentes & W
Whether the rela- Chiquita and trade unions are characterised - depend on the condi- to their workers but also to some extent on the unions in a region.
84 d^Z^
,ÊÄçÙÝd«dÙÝ,ÙÃÄÝ Ý
/ - d, - - ^/dZ/E - - D>Z- D > Z d,K
/ E'K11Z - h -
, & d,Z ' Z - d,Z / Z- ///D^Z' ^ d, - E'Kh^d , D>ZD>Z& D - z
85'
/ E Y Z^ZD d- ,& dK ^Zd- ^Z >> ,
,ÊÄçÙÝDã®Ä¦ó®ã«^/dZdZK
/ , ^/dZdZK ^/dZdZK , d ,- ^/dZdZKdZ d , d
t sindicalismo t t DZK
^/dZdZK d & ^/dZdZK ,-
d^Z^
^/dZdZK , & 14d , h^ ^/dZdZK- ,h^
t /dZdZK- -
- , : , ^/dZdZK t ^/dZdZK : Z
^d :- ^/dZdZK15 d ^/dZdZK- d , /^/dZdZK K D ZKt
,^ ,- W ,
87'
z - d ^/dZdZK
ÊÝãZ®WÙÃÄÄãÊÃîããÝ®ÄÝãÊ¥dÙhÄ®ÊÄÝ
& ^ z Z ',Wt Z - Z
d- - , /- Z EE- 17Z^/dZ,/Z/ 11th> - d WE.18
K ^ - - Zd- /
88 d^Z^
- ^ d - ^D& / -
/ t Z/- Z ,
KdZ - / -
WÄÃZÝÖã¥ç½Z½ã®ÊÄÝ«®Ö
^& W /EdZ/E- K- t , ^
89'
, & Z,' K Z , / d- - / d ^W
K- K- / - t E , D - t - d d- ,^/dZdZKd '/W
d^Z^
Conclusions
d / / t
Since its pioneering dis- ^Z d K / >- d & K
- K d - 19 Quite unders- z t - , d- / - -
91'
- E E'K t /& d^ /&- ^ K&- ^ rights.
KE'K&t & t d Z td / -
t d ,d live in > t t- ,
d^Z^
dW-
^ZK- ^Z / '^Z K - - d
d t d z - / - & z E'K
Lessons learned
K - - K
'
- -
E'K- - ^Z
E'K& d -
t d , t , dW
^ZK ^Z- ' ^Z K - d
94 d^Z^
ÄÄÊãÝ
t d
ΛΛΛ
- ^ d/
d

Z>d/h&K>^//>K tWEd/>K'^
/
ZW </& />W/>WE: DW />W
d

d>>^Z- >
,Z d^dZ DEE Dd

W Z Z- > d /h&K>^/ />K tWE d / >K' ^ ^Z

95'
/W d
/ W , zW /
d^Z^
Abstract
d d This chapter characterises /- t Z
/
^ Z d d / Z E'K W d- ^Z- Z- ^ Z
h^Z /- d
// industrial banana farming
The banana industry, like any other industry, has been exposed to
97'
t - - t

/ , :1 - / - , - /: - / d & Z:
/ : ^- , : t- d ZKK<
K- - Z E
Chiquita’s longstan- the Rainforest Alliance has not only been res- ponsible for its status - strategy.
98 d^Z^
- ZdZ ^- E^E
t ^Z - ^Zd
W -
D/d4d - W ^tΠ >- ^ZD ^Z
& tt&/ tZ& ^Zd Z 5 As - ^Z /
99'

/ z - t Z
d- d d d- z 7
D- , late 19thdW d D- 8
z
/^^/^^/Z9 t ^^/d
The main damaging ef- fects ascribed to mono- - marised as follows: The homogeneity of banana animals and plants.
d^Z^
WZ/ ^Z- Z W
/ - Z / Z-
K -
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Chiquita has underta- ken a number of mea- sures in order to break - nocropping and need for new land.
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and also ensure a proper green life period of the end product.14
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Environmental dimension:
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Economic dimension:- :/ &
, KWW- t / W & W EZ h^ / W- 17d dtE'KDD 18 / ^ZW d W WW WE W 19
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dW - : : Z
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Thanks to its early com- - from the Rainforest Alliance, Chiquita was ways in terms of its en-
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Technology
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- is no guarantee that people respect the rules and a strict control of hectares, is impossible.
While Chiquita seems - reduce the risks posed by aerial spraying, the problem as such is not
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- t -
- ^E'Kt^,t ,t - E'K- ' t^,- - /- t^,Z ///D^Z
d
Benchmarking against organic bananas
t- t - & '
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' - ronmental and social from the use of herbi- could ask why compa- nies like Chiquita do not -
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z

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d Chiquita bananas stem from regions where or- ganic banana farming is hardly possible due to the high disease pres- sure.
'
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Greenwashing occurs when companies replace ^Z with CSR communica- ' - ment of Chiquita and its pioneering role with regards to reducing pes- greenwashing accusa- place.
d^Z^
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Conclusion
- - ': , ^Z - Z- d- z /
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Lessons learned
d- - /
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In a business with ex- - - self trapped between the economic pressure to maximise its yield, which requires exten- the pressure to protect - ment, which, ceteris pa-
ribus, requires a further
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III. Managing CSR
Abstract
/ the judgment of external stakeholders.t- - E'K- ^Zt Z- ^Z ZD ^Z- K hE''Z/
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d^Z & E'K- ^^Z d ^Zd - ^Z
III.1. Managing external aspects of ^ZE'K ^Z
A company whose CSR fails in the eyes of its stakeholders, quickly loses its license to ope- - rable to consumer boy- E'K a simple lack of goodwill which they operate.
115'
^Z - tE'K ^ - & ^Z-
E'K
E'K Z E'K E'K- t E'K ^Z d
W ttt& tZ&// ^Z Z
Z d ^Z /////D/^Z Z d- ^Z
d ^Z-
Chiquita played quite a unique pioneering role when it started to colla- NGOs back in 1992. At
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dE'K d E'K- d E'K ' tt& - 1tE'K CSR. D
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dZ ZdD seal on products f / Z E'K' Z z Z - 4/ h^& Consultant for Rainforest Alliance in ^Z - Z< &Z <Z - K Z- z-
The main challenge for any partnership between a company and an NGO lies in stri- king the right balance
117'
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- gagement in the most - - from a credibility and from a strategic point of
119'
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^Z t- - d serve to highlight ^Z
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the most intensely deba- ted aspects of CSR and
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- - larly those that are announced beforehand are stage-managed.
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t^,- Rainforest Alliance has t^, results of their audits./ t^,d - /
Z t^, Z^Z
& Z &d Z /W z& Z ^ Z ^- land
d /- / t d-
h Z ^ ^/ Z ^Z - d Z - dZ Z d Z- d Z d- Z-
The fact that so far Chiquita is the only main banana producer with the risk that some see the Rainforest Alliance - - dard for Chiquita only’.
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It is hard to imagine that a company’s CSR could it is not documented in
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The irregularity in their ^Z a member of the UN Glo- hE' - to issue an an- WKW disclosure to stakehold- ers on progress made in principles”.
d^Z^
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ZE'K d h^ E'Kt^,
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dd Z- terally all ^Zd /& /& Z- Z &^,> dE'KZ- d,, z K Z- ^ ^ / pioneer despite all challenges.
& ^Z- 'Z/ ^Zd- & - hE''Z/ d ^Z
, - Z-
t - - with their stakeholders and to secure their li- cense to operate, their the fact that most pub- - Z
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Lessons learned
that together secure d D ^Z ^Z
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III.2. Managing internal aspects of CSR: Leadership, cultural and structural aspects
In order to understand whether or not a corpora- in CSR, it is fundamental how deep the roots for engagement are within
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Importance of leadership
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CSR that begin in the been possible without and beliefs of the people ^Z
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^Zt ^D'Zd ^Z^t- 7d t /^Z ^Z ^Z^t : ZK D> W sWtt& d-
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The years following Chiquita’s quantum leap ^Z leaders of an organisa- - ^Z
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Cultural aspects: Values management, internal communi-
ÃÖ½ÊùÃÊã®òã®ÊÄ
t^Z t K ^Z d -
Lonergan set out «to make sure that no mat- ter who leads the com- pany, this is part of who we are.» According to him, Chiquita has reached a state in which it is «hard to extract CSR from what we do we do.»
d^Z^
^Z d ^Z
t ^Z t K ^Z ^Z / - ^Z ^Z / > / > - ', D > ^^ZD ^Zd ^Z /WD ^Z d W ^Z
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While the tone from the top is key for the CSR performance of a com- pany, it also turns out to be the greatest risk.
In order to guard against this risk and make their CSR engagement more to embed and make ^Z
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/ ^Z K > >- /- ^Z
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K / and leading the industry. And if there is anything in our strategy that ^Z ^Z^Z / ^Z
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- ment and employees ^Z consequently enacted without the correspon- ding procedures.
141'
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Conclusions
/^Z- E ^Z ^Z d^Z z ^Z z ^Z d
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Lessons learned
W^Z ^Zd- ^Zz - ^Z
> ^Z / ^Z z
The importance of in- ternal aspects of CSR - ted. The proof that com- they preach is not to be found in glossy CSR bro- chures but in the heart- of a company.
K ^Z integrated into and documented across all - comes an inextricable and enduring part of a company’s workings, of greenwashing.
144 d^Z^
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/ ^Z to ^Z ^Zd ^Z
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148 d^Z^
Abstract
Consumers simultaneously present a huge opportunity and risk for Chiquita’s CSR. d^Z d E'K- ^Z - ^Z
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d E'K- ^Z1
d^Z t ^Z :^Z /s DZZ^Z- / Z - t
d - - -
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Before the emergence - were marketed as a uni- form mass commodity.
149'
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/ ^Zt Z ^Z
^Z
d ^Z / - z
tZ ^ds- ^ZZ ^Z^^E- E'K- 4d^^E -
Z- '5^- 'E'K ^Z Z Z and transparency./^ - &
/ brands like Chiquita face a hight risk of becoming the target of consumer campaigns, which so- of countercampaign to ^Z from companies.
d^Z^
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/// D - ^Z//^h^E'K t^, Rainforest Alliance.
, ^Z Z - d E'K / -
t^^^- &- 8 &- ding.9d^ ^ZE ^ ^Z ^Z - & & & &
d^ ^Z Z &- ^Z
^ ^d - not ^Z 11 -
151'
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d ^Z
^Z
dE'K - Z^Z D d ^Z- K
/^Z , - E'K d & E t< ^Z d- 14& - &d^Z 15
d - ^Z at a later date.
^Z- Z / &Z^- Z
It seems that Chiquita has not yet found a way CSR commitment as a with consumers.
D fact that Chiquita did not communicate about ^Z they wished to bene- - ments at a later date.
d^Z^
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Z 18: 19 E'Kz E'Kt^,
/ ^ - ^ ^Z t -
Conclusion
^Zd ^Z d- ^ Z - ' &- , ^Z- d ^Z
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t ^Z>
/ / ^Z
/ ^Z- - d s ^Z K- ^Z
Lessons learned
^Z ^ Zz & ^Z
^Z - E -
ÄÄÊãÝ
d /s

s that put their heads openly discuss their CSR engagement become - remain in the shadows and do much less, re-
Chiquita might at least consider communica- and steadily, using a - takes made in the past.
154 d^Z^

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t^Θ<:ZZ/d> K&,'ZZ
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155'
Abstract
In order to be able to follow through with their CSR policy, Chiquita depend z K- ^ZK ^Z ^Z & - ^Z^Z
DZZ
d ^ Z ,ΘDK - / t ^Z^ ^Z
d- d t
/s DZ Retailers
Only recently, a debate has started about the impact of decisions made by retailers and consumers on produc- W producers who control the product brands to retailers who control the point of sale.
d^Z^
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K dW- - d- ^Z E'K ^Z Z d E'K
Z K d K ^Z ^Z
d - ^Z d
Retailers play an ambi- to sustainable banana K hand, they squeeze the prices of bananas, on the other hand they insist produced in a socially - ponsible manner.
157'
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158 d^Z^
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^ - - - ^ZZ- , / W - / ' Zt Z- dZZt d- ^Z
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t ^Zd ^Z / ^Zz d
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d - lers to promote CSR are a double-edged sword for Chiquita’s own CSR policy.
d^Z^
^ZWW / Z >t Zt ^ Y D W WZ / Z E Zt
Zt Z ^Z Z Zt Zt Z- - d Z
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Conclusion
Z ^Z d Z ^Z- ^ZD - ^Z t ^Z - d , ^ -
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d- ^Z^Z
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^Z ^Z z- ^Z - t ^Z D ^Z
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^ t ^Z ^Z ^Zd t ^Z ,
/
K^Z - d ^Zt ^Z /s D^Z - Z - ^Z s of all resources entrusted to us and for providing appropriate returns to our / - D- - d^Z - d - ^Z ^Z ^Z d
/s ^Z
d shareholders and CSR should be understood as - factors impact on one another.
d ^Z creates for sharehlders is one of the most intensely
'
t ^Z,
^^Z
t ^Z - ^Z^Z / ^Z
, - ^Z/ / ^Z^ - ^Z- rate assets.
, ^Z
, ^Zt d - ^
/ /WW/ - ^Z
/ - h&- ^>/ ^Z - holder interests and CSR.
Chiquita’s sharehol- ders most likely play an ambiguous role when it comes to CSR in that they oscillate between Chiquita’s CSR.
d^Z^
z Ψ D ^>/ h^ : ^Z
d- ^Z
^Z
d- ^Z- ^Z d - 1
^Z- ^Zd /W ^Z / ^Z
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, ^Z ' ^Z ^Z- <^Z
, - ^Z ^Z
' recent years, we need to consider whether its commitment to CSR real- ly is in line with sharehol- der interests. Yet we also what the numbers would look like if Chiquita did not engage in CSR.
'
t ^ZK ^Z //W- ^Z- K& ^Zt K> ^Z ^Z ^Z /s d >^Z ^Z^ Wt -
/ ^Z' ^Z - ^Z, ^ZD^ Z ' /s ^Z
D - ^Z- /- ^Zd^Z /s /s , d ^Z - ^Z^Z ^Z
Conclusion
- ^Z - t ^Z
The more retailers and - ference to companies with a high CSR perfor- mance, the more the shareholders will see the business case and support CSR engage- CSR.
d^Z^
- - ^Z ^Z
Lessons learned
^
- - ^Z
^ ^Z d- ^Z
d ^Z rather scarce.
^Z ^Z
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<Θt d /DtD:DΘ dK- ^ZKKh W
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The goal of these conclusions is to highlight the complexity of designing, man- ^Z / - ^Z- ^
Struggling with a historical legacy
^Z d
^Z - E z t
/ D - ,
Conclusions: Contextualizing Chiquita’s ^Z
171'
/ /& t / d - d
- - Zt-
d
d^ZD W d - W - d ^Z
t ^Zd ^Z ^Z E^Z- ^Z /^Z K ^Z
K ^Zt t^Z
The complexity of Chiquita’s CSR story claims about causal rela- and responsibility.
The company was a pioneer in numerous aspects of CSR within and beyond its indus- E link between CSR and remains unclear
d^Z^
^Zd & ^ZD^Zt'
d t^Z - d / ^Z- d- d^Z
^Z
>d- lure of storytelling
D^Z ^ - d^Z ^Z
^Z ^Z d Z ^ /& t /- ^Z
t - ^Z- ddd
Despite all the problems its CSR engagement, the CSR is indisputable.
'
^Z ^- > ^Z & D^Z':- ^Z - &^Z E'K Z, ^Z- ^Z- ^Zd E'K- , ^Z d
d^Z /
^Z
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d ^Z - / ^Z- &^
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/ understanding among their stakeholders. Chiquita needs to com- - topdown storytelling.
174 d^Z^

^Z ^Z,- - - d
& Zd && not necessarily Z W & d D & &Z&ZZRainfor- est Alliance d ^Z / consultants and standards.
The wickedness of CSR problems
d ^Z- - ^ZW^ZE'K - ^ ^Z
t nor resolved & -
Companies and their - duce complexity when - cial problems, which re- sults in black and white ^Z challenges.
175'

D &- , /- d-
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/ value chain^Z .
Many of the problems Chiquita is facing are inherently wicked and to ideological disputes.
d^Z^
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Performing at such a ^Z - our analysis shows the fragility of such a per- formance.
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storage or retrieval.
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Mr George Jaksch^ZΘW Mrs Sheila Mc Cann-Morrison^/hD
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