FIJI Water: Carbon Negative?
Posted: 1 Mar 2012
Date Written: November 16, 2011
Seeking to go beyond global best practices in reducing environmental impacts, FIJI Water, a premium artesian bottled water company in the United States, launched a carbon negative campaign that would offset more greenhouse gas emissions than were released by the company's operations and products. The case examines the controversies surrounding this program as well as the program's impacts on the environment and FIJI Water's brand image. The company also faced decisions regarding how to best manage its relationship with the Fijian government, which recently dramatically raised imposed export taxes and could limit FIJI Water's access to water, its primary raw material. The case enables students to better understand the challenges of implementing an environmental strategy and of negotiating with parties that control raw materials, and it invites discussion of the effectiveness of various approaches and the general lessons for the management of companies seeking to operate in an environmentally responsible manner.
Learning Objective: To explore the design and implementation of environmental strategies regarding a company's operations and products. To assess the risks and opportunities of pursuing an environmental strategy that seeks to go beyond global best practices. To explore negotiation approaches with a government that controls access to critical raw materials, and the complications that arise in countries that lack a strong judiciary. To examine the implications of these strategies on a company's ability to effectively manage a global brand and critical local and global stakeholders.
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