A profit-driven multinational corporation and an upstart group of environmentalists surprise the world and forge an astonishingly successful partnership Large and wealthy global companies too often fail to acknowledge environmental responsibility or workers' rights. This book tells the dramatic story of one company--Chiquita Brands International--that decided to change the negative paradigm. Formerly the notorious United Fruit Company a paternalistic organization that gave the name "Banana Republic" to tropical countries in Central America Chiquita defied all expectations in the mid-1990s by forming an innovative pact with the Rainforest Alliance that transformed not only the corporation itself but also an important segment of the banana industry. Gary Taylor and Patricia Scharlin reveal the inside story of how corporate executives banana workers local leaders and conservation advocates learned to work together and trust one another. Over the objections of skeptical critics Chiquita and the Rainforest Alliance established a Better Banana "seal of approval" to certify genuine efforts to improve soil and water quality ensure rainforest conservation and enhance worker health and safety. This chronicle of their collaboration told objectively and with extensive documentation presents a promising new model of cooperative behavior--a model that shows how multinational companies can become motivated to solve critical global problems. Smart Alliance concerns 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 "This book gets out important information in a timely fashion while the field is still being developed. Folks in both the green and corporate worlds should read it." Yale Agrarian Studies Series "This book gets out important information in a timely fashion while the field is still being developed. Folks in both the green and corporate worlds should read it."-William R. Burch, Jr., Yale School of Forestry & Environmental Studies; "One of the fairest treatments of environmental and trade issues yet written. Since the Rio conference (1992), we have been challenged to see the synergies between economics and environmental protection, and this study is among the best."-Jonathan Plaut, Science, Technology, and Society Program, The Pennsylvania State University, and former chair, NAFTA CEC J. Gary Taylor is president and Patricia J. Scharlin is vice president of The Environment Group, New York City. SMART ALLIANCE How a Global Corporation and Environmental Activists Transformed a Tarnished Brand By J. GARY TAYLOR PATRICIA J. SCHARLIN Yale University Press Copyright © 2004 J. Gary Taylor and Patricia J. Scharlin All right reserved. ISBN: 978-0-300-10233-8 Contents Timeline....................................................................................xPreface.....................................................................................xiiiAbbreviations...............................................................................xixIntroduction................................................................................11 Risk, Transparency, and Trust.............................................................72 Red, White, and Bruised...................................................................173