Chiquitas Global Turnaround Research Paper Example | Topics and Well Written Essays - 750 words

Chiquitas Global Turnaround - Research Paper Example From the case, it is clear that Chiquita’s decisions are based on profitability. The profitability of the company is dictated by the ability to reduce costs. Thus, the company does not have an elaborate human resources strategy. Chiquita buys most of its products from subsidiaries. As a result, the subsidiaries are responsible for a majority of Chiquita’s staff. To assert control over the human resource practices of its subsidiaries, Chiquita signed an agreement with its subsidiaries regarding the rights of workers. The agreement meant that Chiquita would only engage suppliers who adhere to the practices of the company, thus revamping its reputation. The precursor firm, United Fruit, had a poor relationship with workers because it prohibited employees from joining labor unions.As such, the bargaining power of the employees was limited and resorted to mass action. However, the company revamped its human resource strategy under the new management and established favorable labor relations. Currently, the company engages employees in many aspects of the operations such as innovation, decision making and research and development.The fact that Chiquita pressures its subsidiaries to adopt is human resources strategy increased its costs. Suppliers who pay higher wages as a result of Chiquita directive often transfer the cost to the company through offering their products at a higher price. Stakeholders have different interests that a corporation should consider in the corporate responsibility strategy.