Fiji water csr

Introductionto the case

Theory of CSR/Greenwas

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FIJI WATER AND CORPORATE SOCIAL RESPONSIBILITY — GREEN MAKEOVER OR “GREENWASHING”?

Stephanie JurischNadine HildChristine ReicheltTanyavutti NuttanujAhmad Abo-ObidStefan Fett

International Management with cases(Prof. Dr. Neil Thomson)05 / 25 / 2011

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Overview

1. Introduction to Fiji Water2. Theory of CSR & Greenwashing3. TBL Trilemma4. Fiji Water Chiquita Bananas5. Conclusion & Recommendation



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1993

Foundation of Fiji Water by David Gilmour

2004

Company sold to “Roll International Corporation“

Launch of “Carbon Negative“ Campaign

2008

Headquarters moved to the US

1996 2000-2004

Expansion of bottling plants

Criticism by the public on environmental issues



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Corporate Social ResponsibilityCompany‘s commitment to the community and

environment it operates inAchieve social benefits along with traditional economic

goals Include public interest into corporate decision-making

(Source: Global Business, Peng, )



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Stakeholder View of the Firm Which group or individual influences or is influenced by the

accomplishment of the firm‘s goals?

See the BIG PICTURE!



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Society

Profit

Environment

Triple Bottom Line Not only economic but also social and environmental

performance Satisfy demands of all

stakeholders



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Greenwashing "socially and environmentally destructive corporations

posing as friends of the environment." (Source: CorpWatch)

"disinformation disseminated by an organization so as to present an environmentally responsible public image.” (Source: Concise Oxford English Dictionary)

Greenpeace Greenwash Criteria: (Source: http://stopgreenwash.org/criteria)

- „Dirty Business“- „Ad Bluster“- „Political Spin“- „It‘s the Law, Stupid!“



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DIRTY BUSINESSCore business environmentally unfriendly

- 600 times more CO2 equivalent than a litre of Thames tap water

- Price of bottled water was about 500 to 1000 times higher than that of tap

High-Quality

Core Product

•Tropical water with unique mineral profile• Uncontaminated, uncompromised & untouched• Chicago magazine: best- tasting bottled water

CORPORATE ACTIVIST



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“CARBON NEGATIVE” /“Every drop is green”-Optimization of packaging via reduction of weight & efficient design

- Support of recycling programs - Optimizing logistics and using more carbon-efficient transportation modes

- Sourcing locally

- ISO 14001 certified

- Use of renewable energy

- Reforestation work in the Yaqara Valley

- 1% for the Planet member

“AD BLUSTER”- 5,500 miles per trip from Fiji to Los Angeles;- 46 million gallons of fossil fuel;- 1.3 billion gallons of water;- 216,000,000 pounds of greenhouse gases

1kg of Fiji Water->26.88 kg of Water->.849 kg Fossil fuel->.562 kg of CO2 emissionHUGE ADVERTISING COSTS

CORPORATE ACTIVIST



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Tremendous Impact on Economy • Undermine investors confidence

• Job losses, slow growth

• Privation of export revenue

Economic Contribution of Fiji Water• Accounts for 20% of Fiji exports

• Fastest growing export product

• High paying employer

• 350 employees, 95% local workforce

• Multi-ethnic workforces with indigenous Fijian and Indo-Fijian people working side by side

“POLITICAL SPIN”

“The main purpose of this new duty was to stimulate conservation of our scarce natural resources.”-Mahendra Chaudhry (Finance Minister)

-1/3 of population no access to proper drinking water (BBC)

2008 taxation attempt -> Water Industry laid off 400 employees

-(F$50) -> “water resource tax” 2009 (F$1.5)

CORPORATE ACTIVIST



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FIJI WATER AS RESPONSIBLE CITIZEN?

Fiji Water Foundation

•Creating educational opportunities for children•Access to safe water•Providing health care•Disaster relief efforts•2004: Award for Corporate Excellence for Outstanding Corporate Citizenship, Innovation & Exemplary IB Practice

TAXATION

- 13 years tax holidays- Low benefit to local community• Import of plant & equipment free of duty•Truck Transport & Emission• Port / Streets / Infrastructure

TRANSFER PRICING?-Revenues (wealth) sent to U.S.-2008 FIRCA Embargo

CORPORATE ACTIVIST



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Important to balance triple bottom line to satisfy stakeholders‘ demand



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Reactive Stance

Defensive Stance

Accommodative Stance

Proactive Stance

Lowest Level ofSocial Responsibility

Highest Level ofSocial Responsibility



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• Dispute if you want bottled water• FIJI Water tries to contribute

positively (proactive strategy)• Consumer decides about FIJI‘s future

- Highly influenced by advertising campaign and prominents acting as role models

• Proposal: sticker on bottle to mark miles a bottle travel & indicate CO2 emission



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VINAKA VAKA-LEVU* *THANK YOU VERY MUCH

QUESTIONS?