The CSR Newsletters are a freely-available resource generated as a dynamic complement to the textbook, Strategic Corporate Social Responsibility: Sustainable Value Creation.

To sign-up to receive the CSR Newsletters regularly during the fall and spring academic semesters, e-mail author David Chandler at david.chandler@ucdenver.edu.

Sunday, March 29, 2009

Strategic CSR - Recycling

The article in the url below discuses the pros and cons of a radical recycling program called Pay-As-You-Throw (PAYT):

“With PAYT, residents are charged based on how much garbage they generate, often by being required to buy special bags, tags or cans for their trash. Separated recyclables like glass and cardboard are usually hauled away free or at minimal cost. … The EPA said that about 7,100 cities and towns were using PAYT in 2006, up from 5,200 in 2001.”

The obvious incentive is to minimize disposed waste by maximizing the amount of waste each household recycles. In spite of the plan’s apparent common sense, however, implementing it is proving to be problematic. In particular, is the debate over whether pollution costs should be borne by the individual (based on the amount disposed) or society (based on the idea that comprehensive and efficient waste disposal is a public good):

“About three-quarters of the nation's households still have unlimited disposal service. In some communities, they pay a flat annual fee. In others, local property taxes cover the tab so residents aren't aware of the cost, making the service seem free.”

The idea that free waste disposal is a ‘right’ is causing backlash in communities that have tried to introduce a PAYT system:

“Illegal dumping has cropped up in about 20% of such communities, according to a 2006 U.S. Environmental Protection Agency report. Local officials also complain about variations of the so-called Seattle stomp (named after one of the first PAYT cities), where homeowners try to beat the system by compacting huge amounts of trash into a single can or bag.”

Nevertheless, with waste disposal costs set to rise significantly in the near future, some communities are still keen to experiment with PAYT:

“Under the Plymouth [MA] system, the town would still handle recyclables such as plastic and yard waste free, but trash would be accepted at the transfer stations only in special purple plastic bags purchased at local merchants for up to $1.25 each, depending on size. The town would get a cut of the bag sales, and residents would also pay a $65 annual fee, with the amount reduced to $40 for seniors.”

Although, at present, this plan has stalled due to public resistance:

“Mr. Hammond, [Plymouths’] public works director, says the garbage debate has been an eye opener. "A lot of people don't want to recycle," he says. "They just want to throw everything in the bin."”

Take care
Dave

Bill Werther & David Chandler
Strategic Corporate Social Responsibility
© Sage Publications, 2006

Currents: Kicking the Cans --- Plymouth, Mass., Wrestles With 'Pay-As-You-Throw' Trash Fees
By Robert Tomsho
1328 words
29 July 2008
The Wall Street Journal
A12
http://www.wsj.com/article/SB121729506485991917.html