Corporate responsibility at chiquita
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Corporate Responsibility at Chiquita. Michael Mitchell Director, Corporate Communications Chiquita Brands International April 7, 2004. Our Company. International producer and marketer of fresh produce 105-year-old company $3 billion in revenues Premium brand

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Corporate Responsibility at Chiquita

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Corporate responsibility at chiquita

Corporate Responsibility at Chiquita

Michael Mitchell

Director, Corporate Communications

Chiquita Brands International

April 7, 2004


Our company

Our Company

  • International producer and marketer of fresh produce

    • 105-year-old company

    • $3 billion in revenues

    • Premium brand

      • Healthy, nutritious, quality, fresh

    • Operations and sales in more than 60 countries

    • 24,000 employees worldwide, including 19,000 farm workers

      • About three-quarters unionized

    • Successful Chapter 11 restructuring completed March 2002

      • New strategic focus on core fresh produce business, cost reductions and increased financial flexibility


Chiquita s situation 1990s

Chiquita’s situation – 1990s

  • A century of history, intrigue and reputation

  • Pressure from NGOs for alleged environmental and human rights abuses

  • Negative media


Our initial steps

Guatemala

Honduras

Colombia

Panama

Costa Rica

Our Initial Steps

  • 1992: Rainforest Alliance

    • Nine measurable and verifiable environmental and social standards for sustainable banana production

  • 100% owned farms certified since 2000

    • Annual farm-by-farm certification audits by independent NGO experts

    • 8-year, $20 million effort

    • 5 countries

    • 120 farms

    • 60,000 acres

  • Expanding to independent suppliers


Our core values

Opportunity

Integrity

Respect

Responsibility

Our Core Values

Steering

Committee

8

Employees

1,000

Senior

Management

12


Verifiable standards

Verifiable Standards

  • Rainforest Alliance Certification

    plus

  • Social Accountability International’s SA8000

    • Multistakeholder contributions, including labor unions

    • Based on core International Labor Organization and other human rights standards

    • Similar to Ethical Trading Initiative Base Code

    • Management systems, including procedures for continuity

    • External verification and certification by accredited auditors


Organization accountability

Organization & Accountability

  • Corporate Responsibility Officer reports to Audit Committee of the Board of Directors

  • CR specialists in all divisions

  • Management systems

    • CR integrated into company strategy & planning

    • Annual CR objectives and bonus for managers

    • All managers sign annual code of conduct compliance statement

  • Education – At all levels


Employee participation training

Employee Participation & Training

Letter boxes for confidential complaints and suggestions

More than 17,000 workers in Latin America trained in 2002


Performance measurement

Performance Measurement


Transparent reporting

Transparent Reporting

  • Strategy

  • Standards & Goals

  • Performance

  • Verification

  • Key Issues

  • Focus on Latin American Banana Operations

  • 2002: Expand to include global logistics operations

2000

2001

2002


Earning credibility

Earning Credibility

“Chiquita continues to impress. The transparency of its corporate responsibility reporting and the use of highly respected independent observers…is a track record which is unmatched in our work in Latin America. While the road is long, Chiquita has traveled far in a few short years.”

Stephen Coats, Executive Director


Engagement

Engagement

IUF-COLSIBA-Chiquita Agreement – June 14, 2001

  • Employment in Latin American banana operations

  • Core ILO conventions

  • Collaboration on worker health and safety

  • Fair dealing and continuous improvement

    • Negotiate in good faith

    • Communicate in open, honest and straightforward manner

    • Avoid public international campaigns or anti-union retaliatory tactics

  • Collaboration on worker health and safety

  • Committee to review serious or systemic violations


Corporate responsibility at chiquita

A Model for Labor Relations

“We have seen real progress as a result of the Agreement in a number of Chiquita operations. We need to work hard to confront the serious challenges that remain, particularly with some Chiquita suppliers. I remain impressed with the good faith and serious intent Chiquita has brought to this process…”

Ron Oswald, General Secretary


Timeline of key cr events

Timeline of key CR events

1992

2000

2002

2003

2004

Rainforest

Alliance

Engagement

Code of Conduct(SA8000)

CR Officer

1st internal audits

100% RA Certification

2nd internal audit with observers

ETI member

Worker training

Top 20 Sustainable Stock Picks (SB20)

2nd Report

SA8000 in Costa Rica

BSR Board

CERES-ACCA Sustainability Reporting Award

SAI Advisory

Board

SAI Corporate Conscience Award

SA8000 in Colombia and Panama

EUREPGAP in Colombia, Panama and Costa Rica

3rd report with logistics

SB20 again

OAS Corporate Citizen of the Americas Award

1998

Steering Committee

Created

1999

Core Values

3rd-party pilot audits

2001

IUF / COLSIBA Agreement

1st CR Report


Challenges

Challenges

  • Building understanding & commitment at all levels

    • Overcoming negative perceptions

    • Limiting fears – transparency, observers, etc.

    • Integrating into management systems

    • Extending standards & oversight to more locations and suppliers

  • Balancing priorities

    • Sustaining momentum through Chapter 11 and change in leadership

  • Raising industry accountability

  • Demonstrating benefits


Benefits

Benefits

  • Reputation management

  • Risk management

  • Employee satisfaction

  • Innovation and learning

  • Access to capital

  • Financial performance


Keys to success

Keys to Success

  • Conviction

    • Performance, not public relations

  • Commitment

    • Fundamental commitment to values

    • Ownership by operating managers

  • Communication

    • Open, honest, direct communications with all stakeholders

  • Consistency

    • Everyday management and reward systems

    • Continuous improvement

  • Credibility

    • Clear measurement and transparent reporting

    • Building trust by committing and delivering


Questions

Questions?

  • More information about corporate responsibility at Chiquita is posted at www.chiquita.com

    Michael Mitchell

    Director, Corporate Communications

    Chiquita Brands International

    [email protected]

    513-784-8959


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