Smart Alliance: How a Global Corporation and Environmental Activists Transformed a Tarnished Brand (Chiquita Banana)
Smart Allianceconcerns a most unlikely partnership between Chiquita Brands International (successor to the infamous United Fruit Company) and the Rainforest Alliance, a young environmental organization, and how they are transforming an industry. (And a huge industry at that—bananas are the most popular fruit in America and the most exported fruit in the world.) Their idea was simple in theory, yet revolutionary: adopt a "seal of approval" to certify fair treatment of workers and environmentally responsible farming practices as a way to win customers. Thus far, it has worked. Since agreeing to oversight by the Rainforest Alliance Chiquita has moved from bankruptcy to profitability and now the rest of the banana industry is paying attention. As a result of their willingness to comply with self-imposed environmental and social rules (at significant cost, it should be noted), they have been rewarded by consumers, a trend the authors believe can spread to other in! dustries: "When they are reliable informed, consumers can be transformed from passive victims of corporate spin into a legitimate political force focused on making responsible companies serious agents for positive societal change." Further, since such conscientiousness is driven by market forces, there is less need for governmental regulation. The book traces the relationship between Chiquita and the Rainforest Alliance since its inception in the early 1990s, analyzing many sides of the globalization debate along the way. Though the relationship is still young and significant challenges remain, there is much evidence that this story may signal a permanent shift towards what was once an unfathomable concept: that a large corporation can be both profitable and socially responsible. --Shawn Carkonen