Forces of Globalization

Forces of Globalization

The world’s dynamics in business considerably extend beyond the scope of profitability as the major determinant of business success. Social, ethical, and environmental domains encompass a significant continuum in the business world as they, directly and indirectly, impact numerous people’s lives including executives, employees, and consumers. According to Global Group (2019), a responsible approach to the greater community is essential to business. The conduct of the business towards ethical, environmental, social, and health issues impacts an enterprise’s reputation. Every organization, including banana companies such as Chiquita, Del Monte, Dole, Fyffes, Noboa, and National companies are subject to having established or working on Corporate Social Responsibility policies. However, the aforementioned companies employ different approaches in dealing with such issues with some being more prudent and thorough.

Chiquita and human rights

The vulnerability of global brands lies in the failure of fulfilling corporate social responsibilities as evidenced by the widespread environmental damages, impoverished workers, and poor working conditions that threaten the banana’s market. The increased consumer awareness of trade ethics resulted in the condemnation of Dole for its environmental pollution (Gonzales-Perez, 2005). In addition, there have been several allegations that Noboa has previously employed children to work in the corporation’s farms. Chiquita and Del Monte have also been criticized after their workers suffered injuries from exposure to a dangerous nematicide. Numerous campaigns launched by NGOs committed to environmental sustainability, fair trade and human rights have greatly influenced the CSR approach adopted by companies such as Chiquita (Gonzales-Perez, 2005). The company, despite having several negative records, recognized the value of its reputation which subsequently led to the firm’s consolidation of more relevant CSR policies. As such, according to Gonzales-Perez (2005), the company received a CSR award for supporting the human rights of its workers in 2004 in which it established home-ownership projects for its employees in Honduras.

In a statement by Baur et al. (2015), when it comes to labor rights, Chiquita outperforms other companies although it faces significant challenges with union representatives and NGOs that constantly criticize the company’s credibility in upholding fundamental human rights. The perception of the lives of Chiquita workers by western critics differs considerably from the representatives of Chiquita’s management, workers themselves, and managers of the farms.

Conclusion

The banana industry faces numerous CSR challenges concerning environmental destruction and the human rights of workers as evidenced by the criticism and issues of companies such as Dole and Del Monte. However, companies such as Chiquita, despite having prior poor CSR records and several current criticisms, maintain a high and promising profile in protecting and upholding ideal CSR values.

References

Baur, D., Palazzo, G., & Rochat-Monnier, D. (2015). The Corporate Social Responsibility Story of Chiquita. Retrieved 24 July 2021, from https://www.guile.org/wp-content/uploads/2015/06/Book-Interactif_300dpi.pdf

Global Group. (2019). Social, ethical and environmental responsibility | Global Group. Retrieved 24 July 2021, from https://www.globalgroup.org/governance/social-ethical-and-environmental-responsibility/

Gonzales-Perez, M. (2005). Bananas Ethical Quality: Multi-stakeholders, Corporate Social Responsibility and Corporate Governance, 1, 1-15. Retrieved from https://www.researchgate.net/publication/228415416_Bananas_Ethical_Quality_Multi-stakeholders_Corporate_Social_Responsibility_and_Corporate_Governance