“Greenwashing” or shared value: Nestle and the Punjab water crisis

Research methodology Descriptive and Analytical research methods have been used. All the data has been collected from the secondary resources. Case overview/synopsis Nestle’s bottled water operations in Punjab, Pakistan, became a focus of national controversy over environmental and ethical concerns. Launched in 1998 as a solution to Pakistan’s unsafe public drinking water, Nestle Pure Life quickly gained market dominance. However, the company was accused by communities, activists and the media of worsening the regional water crisis by extracting vast quantities of groundwater in water-stressed areas, particularly near its Sheikhupura and Kabirwala plants. Reports and a 2018 forensic audit revealed that Nestle had paid negligible fees for extracting 4.43 billion liters between 2013 and 2017 and wasted nearly 43% of the water during production issues Nestle defended as compliant with Pakistani law and attributable in part to necessary purification processes. Despite investing in water stewardship programs and acquiring certification to improve its image, the company was criticized for greenwashing and for failing to address the broader social and ethical aspects of commodifying a basic human right. Legal interventions by Pakistan’s Supreme Court and public scrutiny further highlighted the inadequacy of regulations governing water extraction and amplified the debate on the responsibilities of multinationals operating in vulnerable communities. Ultimately, Nestle, while technically and operationally successful, struggled to build public trust and faces ongoing challenges in balancing commercial growth, sustainability and corporate accountability in a region marked by acute water scarcity. Complexity academic level This case is intended for postgraduate-level students (MBA, MSc Management, Executive Education) in Business Ethics, CSR, Sustainability, International Business or Strategic Management, as well as executive education cohorts in the food and beverage or emerging market sectors.