Fiji Water and Corporate Social Responsibility Essay

Nova School of Business and Economics 2nd Semester 2011/2012 Marta Andre Lopes n º10265 International Management – 4th Case Study Summary – Fiji Water and Corporate Social Responsibility: Green Makeover or†Greenwashing†? 1. Introducing the Case The case traces the establishment and subsequent operation of Fiji Water LLC and its bottling subsidiary, Natural Waters of Viti Limited, the first company in Fiji extracting, bottling and marketing, both domestically and internationally, artesian water coming from a untouched ecosystem in the main of Fiji Islands. It takes us through the growth and market expansion of this highly successful company. The company has grown rapidly over the past decade and a half, and now exports bottled water into many countries in the world from its production plant located in the Fiji Islands. In 2008, Fiji Water was the leading imported bottled water brand in the United States. Despite of a great marketing success of the Fiji brand, particularly in the U. S. market, the case shows us how the company has responded to a number of corporate social responsibility (CSR) issues, including measuring and reducing its carbon footprint, responsibilities to key stakeholders, and concerns of the Fiji government with regard to taxation and transfer pricing issues. It also leads us to think of CSR challenges that may jeopardize the sustainability of a great marketing strategy. In this case, Fiji Water faces CSR issues such as the carbon footprint on its production, responsibilities to stakeholders, relations and legal issues with the Fiji authorities on tax incentives, export duty claims and transfer price that may jeopardize an otherwise successful marketing strategy. . Challenges Ahead The firms’ strategies should not only focus on the stakeholders’ or the employees’ interests, they should also take care of the outsiders’ interests affected by the firms’ business since every firm, irrespective of its business or size, must have an obligation to satisfy the social interests when it does the business in the sake of the stakeholders. The case showed that a corporation’s marketing and ethical strategies should not only focus on the interest of the stakeholders and the legal compliance of that corporation’s business, but also center on the moral and social responsibilities. A corporation with a more socially responsible practice would consider itself as responsible corporate citizen of the entire society for every course of business actions. Also, if a corporation fails to maintain a good CSR practice, it exposes the business to various green nterests groups which may trigger the corporation’s sustainability. Given this, it is very important that corporations and their marketers care about CSR practice to ensure the sustainable strategy, which help to ensure the achievement of the stakeholders’ interests by managing economic, legal, social, cultural, and environmental risks. Fiji Water LLC showed a great contribution in Fiji with respect to tax revenue, jobs for local workers, foreign currency collection from export sales and so on. These factors ensure that the production facilities in Fiji can be sufficiently operated and expanded over the years to meet the increasing demand from consumers. I think that the company could develop a comprehensive program on measurement, tracking, reporting, and audit on corporate commitments and responsibilities on environment protection of itself and its vendors, which could help to Fiji Water LLC and its vendors to improve its environmental credibility in certifying that Fiji Water LLC is carbon negative. Also, the company should start paying more corporate taxes to demonstrate that it is a good corporate citizen by revisit its transfer pricing practice. As a consequence, it should review and optimize its business operations to be more efficient and effective by reducing its costs,balancing the interests of its stakeholders and Fijian government.