Business Ethics

Ethics is something that all businesses and corporations have to consider. When a company becomes more ethical, it is not always a step in the right direction. In some cases, trying to address certain ethical issues can backfire. Without a complete understanding of the implications and possible consequences of confronting these situations, companies can run into problems. This was the case for Chiquita, a well-known distributer of bananas and other produce. The company tried to take a step forward and become more ecofriendly by discontinuing the use of oil from Canadian tar sands, as well as enforcing the use of sustainable farming techniques. By taking on these ethical issues, Chiquita faced many complications such as boycotts and lawsuits. Their main competitors, Dole and Fresh Del Monte, have not been under fire because they haven’t addressed any of these issues. Companies should not bend to the demands of social responsibility if they are not positive it is the route they want to down. Making decisions to become more ethical as a business sounds like it would always be a good choice; however, this is an incident where choosing to be ethical has caused the business a lot of trouble.

http://www.economist.com/node/21551500