After this success he and the Bostonian entrepreneur Andrew Preston join efforts to develop a banana market in Boston. Nearly 5, men die, including Meiggs.
Rabobank a Other attempts were made at diversifying activities but it is not clear whether these were always successful. For example, Chiquita invested in the canned vegetable business through three acquisitions in and Dole invested in cut flowers. Conversely, Fyffes concentrated on the fresh produce business, selling off its other ventures.
This was something of an unprecedented situation for the TNCs, which had been used to doing business with a multitude of wholesalers and retailers.
The emergence of large retail firms reversed the balance of power. Oversupply also strengthened the bargaining power of retailers. The TNCs saw their prices and margins shrink and responded with the cost reduction strategies described above.
To better serve supermarket chains, banana TNCs now place an emphasis on shipping, marketing and provisioning of services. These activities generate higher profit margins than production. Innovations on marketing and logistics were adopted to better meet the needs of retailers.
One of them was the use of refrigerated containers instead of conventional reefer vessels to transport bananas .
This contributed to quality improvements, a reduction of handling and distribution costs and a better capacity to respond to the needs of retail clients.
The development of strong brand names has been another response to the oversupply crisis and the rising power of retailers. United Brands International changed its name to Chiquita Brands International inin order to capitalize on the high recognition of the Chiquita brand by consumers.
Castle and Cooke changed its name to Dole Food Company the following year. In addition, some TNCs implemented a strategy of diversification within bananas.
Chiquita used its Better Banana Project as a sales argument to European retailers. ILO Conventions and national laws were violated in many instances, including child labour, excessive working hours, sexual harassment and health and safety regulations. The opposition of plantation management to independent worker unions gave rise to tense confrontations that in some cases took on a violent form.
Union leaders denounced harassment, threats of dismissal and attacks by company-hired militias. Further, the involvement of the TNCs in the national politics of some Central American countries and their support of non-democratic governments became a media issue at times over the course of the years.
And in the years since, some would argue that the Company has been closed and defensive in addressing concerns about its standards and practices.
And so has our Company. Criticism peaked in the s, fuelled by the high media coverage of the banana trade dispute between the United States and the EC.
The two controversies became intertwined when some proponents of the COMB argued that this policy had enabled banana firms in ACP countries to provide fair treatment to workers and to protect the environment. It exerts pressure on TNCs to improve their practices and monitors their environmental and social performance.
Init organized an International Banana Conference to propose an international banana agreement for more responsible trade in bananas Kox Critics of the TNCs found strong supporters in the Fair-Trade movement, the aim of which is to help small disadvantaged banana producers to gain access to import markets see Chapter 5.
In addition to opposition from civil society organizations, and perhaps due to their successful awareness raising campaigns, the TNCs were also encouraged to improve their social and environmental performance by pressure from shareholders as the concepts of Corporate Social Responsibility CSR and ethical business became more common in the business community.
There were also a few initiatives at the intergovernmental level.
Inthe United Nations adopted the Global Compact, a set of voluntary guidelines on corporate governance based on nine key principles governing human rights, labour rights and the environment.
As a result, the UN High Commissioner for Human Rights produced draft norms on the responsibilities of transnational corporations. They include provisions regarding discrimination, child labour, forced labour, worker remuneration, freedom of association etc. The Sub-commission for Protecting and Promoting Human Rights adopted the draft norms in August but they still need to be approved by the Commission for Human Rights, which consists of 53 countries.
Finally, market factors such as oversupply, fierce competition, the pressure of retailers and changing consumer preferences forced TNCs to differentiate their products to retain their market share. However, the pressure intensified in the early s. The first measure adopted was the establishment of industry or company codes of conduct e.The United Fruit Company (UFC), whose highly profitable business had been affected by the end to exploitative labor practices in Guatemala, engaged in an influential lobbying campaign to persuade the U.S.
to overthrow the Guatemalan government. Pablo Neruda: “La United Fruit Co.” from Canto General () Cuando sonó la trompeta, estuvo todo preparado en la tierra, y Jehova repartió el mundo a Coca-Cola Inc., Anaconda, Ford Motors, y otras entidades: la Compañía Frutera Inc.
se reservó lo más jugoso, la costa central de mi tierra, la dulce cintura de América. May from the United Fruit Company in Latin America This control over land and railways causes a lot of friction between United Fruit and the Colombian national government.
“In it (UFC) operated miles of track, 91 of which constituted the main line to Fundacion, and 81 miles of branch lines within the plantations.
Mar 02, · “Guatemala was chosen as the site for the company’s earliest development activities,” a former United Fruit executive once explained, “because at the time we entered Central America.
By UFC had gained a controlling interest in the British owned Elders & Fyffes Co and ships were regularly transferred between the two fleets. United Fruit merged with Cuyamel Fruit Co in In United Fruit Co was absorbed into United Brands and subsequently divested itself of .
November: After an unsuccessful price war against Zemurray's Cuyamel Fruit Company, United Fruit decides to buy Zemurray out.
United Fruit sells Zemurray $31,, in the company's stocks in exchange for all Cuyamel stock. Zemurray becomes the biggest shareholder of United Fruit.