Fiji Analysis

1 January 2017

They soon began to look for ways to cut costs through employees, outsourcing materials, and even escaping taxes. This was brought to the attention of FIJI Government as well the entire global public. This analysis will answer the 5 major questions the public may have about FIJI water. Was Fiji water ethical and socially responsible in marketing and why should they be concerned about CSR and sustainability? What is sustainability? According to the wikipedia dictionary sustainability is the capacity to endure.

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In the case of FIJI water it is to not only increase profits but to manage their responsiblity in the environment,, society, and in the global economy. To be socially responsible is to recognize the surrounding society and be acountable for your{FIJI water} action. FIJI water has been under scrutiny for removing more carbon from the atmosphere than it puts into it. Fiji water is accused of greenwashing, claims that its water products are carbon negative. FIJI water has also been accused of being unethical with the FIJI government and natives because of tax increases on exports.

The Newport Trial Group claims that it is not leaving a carbon footprint on the Island of FIJI or the environment. FIJI water is not a carbon negative company. Fiji water however, claims to be one of the only carbon negative bottled water companies in the market. What factors contributed to the marketing success of fiji water? Many can argue that FIJI water is a scam. The truth is that David Gilmour had indeed found a phenominal artesian well with “untouched” water. If you compare them to their competitors they have something completely different.

Fiji water isn’t just purifying tap water. When I drink bottled water it always seems to have an aftertaste of plastic. Fiji water has no after taste. I believe this is the strongest argument that FIJI water has in claiming they have the most pure water. FIJI water has directed it’s marketing to the middle and upper class. Having popular celebrities endorse the water at the Grammy Awards ceremony the created the image of FIJI water not only being bottled water, but being the bottled water that all the stars drink.

What is carbon negative and how did FIJI water report carbon footprint of their product? Carbon negative for FIJI water means that what they are doing by bottling their water is taking out more carbon dioxide from our environment then what they put into it. This is a very strong claim. They have the option to claim to be carbon neutral, but even that would be false. FIJI water bottles the water in the South Pacific. The water then gets shipped to primarily the United States, Austrailia, Canada, and many other countries.

Once the water is in these countries it is then shipped by truck to the local vendors. Pablo Paster, an engineer and MBA did a study on the amount of greenhouse gas used during this proces. Greenhouse gas is a gas that absorbs and emits radiation. meaning it’s realizing carbon dioxide and other gases into our ozone and solar system. “The manufacture and transport of that one kilogram bottle of FIJI consumed 26. 88 kilograms of water (7. 1 gallons), . 849 kilograms of fossil fuel (one litre or . 26 gallons) and emitted 562 grams of greenhouse gases (1. 2 pounds). (pg13) According to these type of results along with many others FIJI water is planning to offset its total carbon footprint by 120 per cent. This will be an extremely difficult task but it is something FIJI water is working towards to create the carbon footprint they have marketed for years. Do you think FIJI water is engaged in greenwashing and how can they gain environmental credibility? FIJI water has been attacked because of it’s claim to be carbon negative. Evidence has been brought to their attention that they are clearly using more carbon distributing this water globally from FIJI.

Rob Knox stated in his article,”Let’s discuss what every drop of Fiji water is- and here’s a hint, it’s not green”. (page 13) I feel at this point FIJI water can’t really take back their claim to be green. How else can they gain environmental credibility? The best answer is to take a different approach. WE all know they will continue to ship bottled water globally. A new competitor called “People Water” will donate a bottle of water for every bottle purchased. If FIJI water were do do the same I feel they would create the image of giving and donating versus the image of greenwashing the have accrued.

Their are millions of people suffering globally to the polluted water big corporations like FIJI water has contaminated. They need to take a different stance and protect the people suffering most. How is FIJI waters relationship with the local government and surrounding communities? Second to sugar FIJI water became the second largest export to come from Fiji. There became a “stand-off” between the government and FIJI water over taxes. Prior to 2007 FIJI water had been granted tax-free status. in 2008 The government had realized the revenue that could be made by implementing a 20-cents-per-litre tax.

However, it worried the government that it might but a brake on the growth of the bottled water industry and diminish the earning of Fiji exports. In 2009 they created “water resource tax” that FIJI water would pay 11 cents per litre. Due to the amoount that FIJJI water would be losing by paying this tax the Fiji government was suspicious that FIJI water had begun Transfer Pricing. Meaning they were shipping it to their headquarters in Los Angeles for a very low price to manipulate the amount of taxes they would be paying.

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