E-Wasteful

The ICEB recently sent four MBA students to participate in the National Intercollegiate Business Ethics Competition at Loyola Marymount University in LA. The students proposed that the judges (acting as executives at a computer company) initiate a corporate take-back policy for their electric components.

Electronic waste, called e-waste, is one of the world’s fasted growing pollution problems and is not limited to computer parts. E-waste accounts for 70% of America’s toxic garbage and 2% of America’s total garbage. This smaller number, however, may be misrepresented, as much of the e-waste is exported to developing countries like China, India Thailand and Nigeria. Some companies are, in essence, outsourcing their pollution. In 2002 alone, 10.2 million computers were exported for illegal “recycling.” Much of these products end up in landfills where local adults and children find them and melt the valuable (yet toxic) materials down for resale. Harmful chemicals often drain into the soil and groundwater, further hurting the local peoples.

Using several systems currently in place in the EU (WEEE), Washington and California as a point of reference, the group argued that it is the company’s responsibility to dispose of this e-waste properly, speaking to ethical, legal and economic issues. Beyond the goodwill produced by such a process, often overlooked is the potential for income generation or cost savings that might also be produced.

Who do you think should be responsible for the disposal of electronic components? Do you agree that companies should take the lead? Or should the consumer be held accountable? Should the US adopt the systems currently in place in Europe and California?