Fiji

FIJI WATER

Problem Analysis:

This case traces the establishment and operation of FIJI Water LLC and its bottling subsidiary. The case reviews the growth and market expansion of this highly successful company with the brand name Fiji Water. The company grew rapidly over the past decade and now exports bottled water into many countries in the world from its production plant in the Fiji islands. In context of Fiji’s great marketing success of the FIJI brand, particularly the US market, the case focuses on how the company responds to a number of CSR issues, including measuring and reducing its carbon footprint, responsibilities to key stakeholders, and concerns of the Fiji government with regard to taxation and transferring pricing issues. The case provides a illustration of how CSR challenges may jeopardize the sustainability of a clever marketing strategy.

Critical Ethical Issues: Individual, Societal and Organizational

* Negative impact on the environment, high carbon emissions related to its production, storage, transportation and disposal

* Bottled water is perceived to be unnecessarily expensive

* Bottled water is no healthier or safer than tap water

* Greenwashing

* Carbon Negative- Environmentalist claim the “carbon negative” message does not provide the actual calculation of carbon footprints

* Environmental impact- U.S. environmentalist showed the environment impact of Fiji water is 46 million gallons of fossil fuel and 216 million pounds of greenhouse gases

* Transfer pricing- Fiji water produced in Fiji was sold to headquarters in Los Angeles at the price of $4 a carton and sold for $50 a carton

* Relations to local community

* Taxation issues-Fiji government wants to tax the export of Fiji water

Ethical Frameworks: