Introduction
FIJI Water is one of the leaders in the market of bottled water globally. The company experienced rapid growth during the 1990s-2000s due to a successful marketing strategy and increased interest in bottled water in a variety of markets (McMaster & Nowak, 2009). At the same time, the company is now facing several issues that require urgent measures to be undertaken.
Thus, growing environmental concerns across the globe have led to extensive criticism from numerous environmental and conservational organizations and activists stressing that bottled water was a waste of natural resources as well as people’s money.
FIJI Water responded to such accusations by implementing a project aimed at investigating the negative impact of the company’s operations as well as diminishing these effects. Admittedly, the company has to meet people’s expectations as in case it fails, FIJI Water may lose its favorable image and, eventually, make a loss as people will simply stop buying its products.
The US-based company also has tensions with the Fijian government that has introduced an increased tax that is likely to lead to a decrease in profit. The company has to solve this issue as the inability to comply with local laws may result in the plant’s closure. At the same time, the overall corporate culture and the company’s contribution to the development of the community are rather effective.
Critical Ethical Issues
Individual Ethical Issues
The difficulties mentioned above are hazardous for the performance and even survival of the company and are associated with ethical issues that can be found at different levels. First, certain individual ethical issues arise. McMaster and Nowak (2009) note that FIJI Waters launched a campaign aimed at tracing the level of the company’s sustainability.
Thus, employees involved in this project may try to contribute to a positive image of a company and falsify research data, which is a common solution to an ethical dilemma in organizations (Baines & Fill, 2014). Executives may also try to bribe some Fijian lawmakers to solve the tax issue.
Organizational Ethical Issues
As far as the organizational level is concerned, FIJI Water may get involved in unethical conduct. It may distort data of research on its operations to prove its focus on sustainable practice. McFarlin and Sweeney (2014) note that falsification of data (especially data on economic performance) is still a global ethical issue. It is also noteworthy that FIJI Water may focus on its corporate benefits and take advantage of local people decreasing investment into communities to respond to possible losses associated with new taxation. The company declares its responsible attitude towards locals but this information should be monitored continually.
Ethical Issues for Society
Apart from this, ethical issues for society also arise. Hence, societies, where people buy the company’s product, will have to decide whether they need to show off their status or focus on environmental issues. In other words, the society that claims its adherence to such values as sustainability will have to reveal its readiness to ignore bottled water produced in a non-sustainable manner. Furthermore, the Fijian society will have to decide whether they are ready to enjoy short-term benefits and ignore such long-term outcomes as possible lack of natural resources in the future. To date, societies reveal their unpreparedness to follow sustainable principles.
Ethical Frameworks
These issues need specific attention and the use of at least two ethical frameworks. First, it is necessary to note that utilitarianism can help effectively address the issues. The framework is based on the principle of “the greater good for the greatest number of people” (Ferrell, Fraedrich & Ferrell, 2014, p. 157).
Admittedly, people start companies to make a profit but contemporary businesses have to be responsible. Social responsibility is, actually, one of the most important advantages of an organization and people eagerly buy from such companies. Hence, FIJI Water has to focus on the greatest good for its customers as well as the Fijian society. The company may have to sacrifice a certain amount of its considerable profits to invest in research, truly sustainable methods, and the development of communities (including compromises with the government).
Besides, human rights frameworks should be employed as well. This approach focuses on people’s rights. Again, FIJI Water has to consider its practices and operations to make sure people’s rights are manifested. Hence, people have the right to get appropriate salaries for their labor and they have the right to live in adequate conditions as well (which can be achieved through a variety of sustainable programs and proper taxation). Finally, people have the right to know what kind of products they buy and make their choice based on comprehensive information. Therefore, the company has to ensure transparency of its operations.
Relevant Law and Company Policy
The present case shows the tension that may appear between a company and a country’s government. Thus, in November 2008, the government of Fiji introduced the so-called, water resource tax. The law set a fixed tax per liter of water extracted. It is necessary to note that the company negatively accepted the law though FIJI Water has to comply with it as the period of tax-free operations terminated.
Notably, a similar law was introduced earlier that year and it led to a highly negative reaction of the company that closed some facilities and started certain campaigns involving other water producers and media aimed at opposing the law. Nonetheless, it is also clear that the law was fair since the company utilized the country’s resources water, roads, land, and human workforce (McMaster & Nowak, 2009). Compliance with local laws also contributes to the development of a favorable image.
Conclusion
In conclusion, it is possible to apply the three-part model to identify the most efficient solutions. When it comes to economic solutions, the company has to understand that the image of a socially responsible company has to be sustained. The organization’s profitability depends on its ability to maintain this image. To do so, the company has to meet its standards and diminish its negative effect on the environment. As far as ethical solutions are concerned, the organization has to apply utilitarianism and human rights framework.
People (especially local communities) have to have the opportunity to live in appropriate conditions and receive adequate payment for their input. As for the legal solutions, FIJI Water has to comply with the law introduced by the Fijian government as it is fair since the company makes considerable profits and utilizes significant resources. It is possible to conclude that if the company applies these solutions, FIJI Water is likely to remain one of the leading producers of bottled water in the world and will be an exemplary global company that is truly socially responsible.
Reference List
Baines, P., & Fill, C. (2014). Marketing. New York, NY: Oxford University Press.
Ferrell, O.C., Fraedrich, J., & Ferrell, L. (2014). Business ethics: Ethical decision making & cases. Stamford, CT: Cengage Learning.
McFarlin, D., & Sweeney, P.D. (2014). International management: Strategic opportunities & cultural challenges. New York, NY: Routledge.
McMaster, J., & Nowak, J. (2009). FIJI Water and corporate social responsibility – green makeover or “greenwashing”? Ontario: Ivey Publishing.