Although it would seem advantageous for Chiquita to communicate and leverage the great strides it has made through its corporate responsibility effort, management seems reluctant to promote its achievements through the typical mass communication vehicles. Indeed, when Chiquita attempted to advertise its certification process with commercials in Denmark that equated its Central American banana farms with a “glorious rainforest,” the ads were met with skepticism and thought to be unrealistic. 29 Instead of mass advertising, the firm has opted for a longer-term marketing strategy based on educating leading opinion makers and critics alike. According to Dennis Christou, vice president of marketing–Europe, there is a natural suspicion among consumers about commercially driven messages. He believes that customers feel more trust in the message if it’s delivered by an external body rather than by the company or by a paid advocate of the business. 30 That is a main reason why the firm is relying on viral marketing tactics and third-party testimonials as the means of spreading its message. Retailers are treated differently: They must be exposed to improvements at Chiquita because they determine which exclusive brand to carry on an annual basis. However, Christou believes that creating brand recognition with consumers is possible through non obtrusive, reputable means. Defining and conveying a brand’s differences in a commodities marketplace is difficult. Nevertheless, Chiquita believes it can carve out its own niche by distinguishing itself as a leader in corporate responsibility. Instead of positioning itself solely on the basis of price, Chiquita is hoping that its distinctive competency in CR will help it stand out from the pack. The company got a boost in this regard in April 2003, when Chiquita, along with Ben and Jerry’s, received the first Award for Outstanding Sustainability Reporting presented by the Coalition for Environmentally Responsible Economies (CERES) and the Association of Chartered Certified Accountants. 31 In 2006, Chiquita won Costa Rica’s Contribution to the Community Award for its Nature and Community Project, which preserves biodiversity and promotes nature conservation awareness. 32
1. How would you characterize Chiquita’s historical approach to global management?
2. Describe Chiquita’s approach to human resource management in its global supply chain. What particular human resource challenges does Chiquita face as the purchaser, producer, and supplier of a commodity?
3. Does Chiquita’s global corporate responsibility (CR) program create a conflict between shareholders and other stakeholders? Who are Chiquita’s main stakeholders in the United States and around the world, and how are they affected by Chiquita’s CR program?
4. How would you characterize Chiquita’s past and present leadership? How does leadership affect a company’s overall reputation?
5. Do you believe Chiquita would have changed its policies without the presence of damaging stories in the media? If not, what does this say about Chiquita’s old management style?
6. What challenges does Chiquita’s new CEO face in continuing to turn the company around and balance the interests of competing stakeholders?