Over the past few years, attention towards the ethical production of crops has become a major focus of environmental groups. Chiquita, an American multinational distributor of bananas and other produce, has taken strides to appease environmentalists. The company has signed and adhered to a global agreement with local and international food unions and adopted sustainable farming techniques. In 2011, Chiquita responded to a campaign by ForestEthics by agreeing to avoid oil from the Canadian Tar sands for use in their transport vessels.

However, the recent times have been turbulent for Chiquita. While social activists were pleased, Canadians were discontent over the loss of revenue and their share price has been in decline. The costs of maintaining such policies are also eating into their profit margin. Their failure to reap rewards with their efforts is concerning, as other large suppliers such as Del Monte and Dole look on, wondering if there is any value gained from operating more responsibly.

I see this situation as a failure to properly market their commitments to customers. It shows that even if a company tries to become more ethical, they must also incorporate into their brand image through marketing rather than leaving their efforts as lone incidences of goodwill. Their labels should indicate the ethical practices that were used, so that stakeholders such as consumers and environmental groups, can both appreciate Chiquita’s noble intentions.

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