BC’s Groundwater Source Exploited, Who is Responsible?

The lack in government involvement in the regulation of ground water use seems to be emphasised in this article. However, I believe that the use of unethical practices by Nestle, a multi-billion dollar company should receive more critic.

As stated by Ed Freeman, it is crucial to consider the well being of all stakeholders of a business, which has been completely neglected in the case of Nestle. By taking 265 litres from BC water sources without considering the externalities generated towards the community Nestle may gain some negative good-will which can affect the company’s competitiveness in the long run. As the matter of fact, with the increasing awareness towards sustainability and environment this case can lead to bad publicity, therefore drop in sales. On the other hand, this issue is almost impossible to be reprimanded as there are no specific laws regarding ground water regulation in BC which put the community of BC on the losing side. Additionally, the introduction of water regulation can lead to the rise in the price of bottled water, which is a loss for the consumers and later on, Nestle itself.

 In a broader perspective, the absence of CSR in Nestle corporate practice can cause sustainability problem that impact a wider community in Canada. In consideration of business competitiveness and consumer welfare, the establishment of law regarding groundwater is the most suitable solution to this growing problem.

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http://www.timescolonist.com/news/local/wild-west-of-groundwater-billion-dollar-nestl%C3%A9-extracting-b-c-s-drinking-water-for-free-1.587568

Commented on:

https://blogs.ubc.ca/jayagrawal/2014/09/09/is-csr-only-about-public-relations-stunts/

https://blogs.ubc.ca/stevengao/2014/09/09/drugstore-to-stop-selling-tobacco-products/

1 Thought.

  1. I truly agree t when you mention about the sustainability problem. It is very important to look into the long term effect of the issue,as Nestle acts as a foreign company in Canada. Not only that the business ethics are being violated, but it also creating threats for Canadian society in the future. In longer term, It also open a threat that Canadian would not be able to consume the tab water because the groundwater will be overly polluted.

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