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Fiji Water Case Study

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S w 909A08 FIJI WATER AND CORPORATE SOCIAL RESPONSIBILITY — GREEN MAKEOVER OR “GREENWASHING”?1 James McMaster and Jan Nowak wrote this case solely to provide material for class discussion. The authors do not intend to illustrate either effective or ineffective handling of a managerial situation. The authors may have disguised certain names and other identifying information to protect confidentiality. Richard Ivey School of Business Foundation prohibits any form of reproduction, storage or transmission without its written permission. Reproduction of this material is not covered under authorization by any reproduction rights organization. To order copies or request permission to reproduce materials, contact Ivey Publishing, Richard …show more content…

FIJI Water was singled out as a primary example of “water insanity” due to the fact that the product was shipped from a remote island in the South Pacific to its main markets thousands of miles away. In response to this protest, the company launched a new promotion campaign under a slogan “every drop is green,” only to be immediately accused by environmentalist groups of engaging in greenwashing activities. The claim was also challenged by government watchdogs in some countries where FIJI Water was sold. At the same time, the company’s relationships with the Fiji government were at the lowest point. The government accused FIJI Water of transfer price manipulations and seized hundreds of containers carrying FIJI brand water. After assessing the company’s contribution to the Fiji economy, the government tried to impose a hefty tax on exported water and the company took the drastic action of laying off its employees in Fiji to pressure the government to repeal the initial 20-cents-a-litre tax that would have greatly reduced FIJI Water’s profitability by increasing its tax bill by about FJ$50 million per year. The company intensified its PR activities, focusing on its contributions to the local communities, to show how good a corporate citizen it was in Fiji. THE PRODUCT CONCEPT AND COMPANY BACKGROUND The product concept was developed in the early nineties by David Gilmour, the Canadian-born owner and founder of Fiji’s renowned Wakaya Island

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