The Economist: Going Banana (Direct access to the article: http://www.economist.com/node/21551500)
Businesses strive for success, and the definition of the ‘success’ itself is very subjective, for some, it might mean gaining higher profits, brand, or even surviving (during recession). But overall, businesses’s one and only unchanging aim is to satisfy all their stakeholders, because satisfying all of them means success for every business.
But we all know that different stakeholder has different opinion, aims and objectives. So, it is almost impossible for a business- no matter how successful or how much profit they get in one year, to completely satisfy all their stakeholders.
Businesses might have to go against others just for the sake of satisfying that one ‘important’ stakeholder. That’s what happened to Chiquita Brands, one of the world’s biggest suppliers of bananas and other fruit.
After a campaign by a green group called ForestEthics, Chiquita agreed to avoid fuel from Canadian tar sands, which resulted to the boycott of Chiquita’s products.
“Canada depends on Alberta’s oil-rich economy to fuel prosperity and any shut down in the province’s oil industry would be felt across the country.If that happens, not only will there be significant job loss across the country, but there will be a radical change and we will lose a considerable amount of investment,” – Alberta Premier Ed Stelmach.
Despite their success in pleasing the environmentalists, the Chiquita had apparently offended Canadians who depend on the oil industry. According to them, what Chiquita has done is not only just being inconsiderate, but also unethical.
Deciding which stakeholder businesses have to concern themselves with is definitely not an easy choice to make, nor is defining ‘ethic’ in terms of different perspectives.
References:
Canada’s economy depends on Alberta oil: Stelmach | CTV News . 2013.Canada’s economy depends on Alberta oil: Stelmach | CTV News . [ONLINE] Available at: http://www.ctvnews.ca/canada-s-economy-depends-on-alberta-oil-stelmach-1.273270. [Accessed 12 September 2013].
Chiquita CEO pays the price for attacking Canada’s ethical oil | Ethical Oil.org. 2013. Chiquita CEO pays the price for attacking Canada’s ethical oil | Ethical Oil.org. [ONLINE] Available at:http://www.ethicaloil.org/news/chiquita-ceo-pays-the-price-for-attacking-canadas-ethical-oil/. [Accessed 12 September 2013].