Chiquita Justification and Disclosure of Settlement

Chiquita Justification and Disclosure of Settlement - THE...

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T HE C ORPORATE C ITIZEN , A PRIL 2007 An Excruciating Dilemma Between Life and Law: Corporate Responsibility in a Zone of Conflict In February 2003, senior management of Chiquita Brands International learned that protection payments the company had been making to paramilitary groups in Colombia to keep our workers safe from the violence committed by those groups were illegal under U.S. law. The company had operated in Colombia for nearly a century, generating 4,400 direct and an additional 8,000 indirect jobs. We contributed almost $70 million annually to the Colombian economy in the form of capital expenditures, payroll, taxes, social security, pensions and local purchases of goods and services. But during the 1990s, it became increasingly difficult to protect our workforce. Among the hundreds of documented attacks by left- and right-wing paramilitaries were the 1995 massacre of 28 innocent Chiquita employees who were ambushed on a bus on their way to work, and the 1998 assassination of two more of our workers on a farm while their colleagues were forced to watch. The problem was not unique to Chiquita. It was common practice for paramilitary groups to target businesses for extortion and to terrorize the Colombian people by kidnappings and murder. Freddy Rendon, former Colombian paramilitary boss, recently told reporters that it is "no secret to anyone that banana
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This note was uploaded on 03/26/2011 for the course MAN 2021 taught by Professor Blondell during the Spring '11 term at St. Johns River Community College.

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Chiquita Justification and Disclosure of Settlement - THE...

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