E-waste Dumping - A Challenging Legal and Ethical Choice in Global Business - Coursework Example

[Supervisor E-waste Dumping - A Challenging Legal and Ethical Choice in Global Business Introduction The use ofelectronic devices has proliferated in recent decades, and proportionately, the quantity of electronic devices, such as PCs, mobile telephones and entertainment electronics that are disposed of, is growing rapidly throughout the world. In 2000, it was estimated that approximately 20 million PCs (about 7 million tons) became obsolete. By 2010, this figure was to increase to over 100 million PCs. Cumulatively, about 900 million PCs reached the end of their service lives between 2000 and 2003. 900 million PCs contain approximately 2,872,000 t of plastics, 818,000 t of lead, 2363 t of cadmium and 387 t of mercury (Puckett and Smith, 2002). This fast growing waste stream is accelerating because the global market for PCs is far from saturation and the average lifespan of a PC is decreasing rapidly - for instance for CPUs from 4-6 years in 1997 to 2 years in 2005 (Culver, 2005). PCs comprise only a fraction of all e-waste. It is estimated that in 2006 approximately 180 million mobile phones will be retired. Similar quantities of electronic waste are expected for all kinds of portable electronic devices such as PDAs, MP3 players, computer games and peripherals (O'Connell, 2002). A lot of this waste (approximately two thirds) ends up in Asian countries, mainly China and India. There this waste is dismantled by bare hands, by low paid workers. This is a very serious environmental and health hazard for those nations. This paper shall consider the ethical and legal aspect of e-waste dumping in different countries, mainly China. Unfortunately, largely for economic reasons, the developed world has used primarily one method of dealing with this crisis-exporting their e-waste to less developed countries that are unable or unwilling to protect their citizens from the resulting harm to the ecology or public health. The minute quantities of reusable minerals contained within these electronic products have value only in places with paltry wages and where health codes for their extraction are nonexistent or not enforced. As a result, studies estimate that 50% to 80% of all e-waste amassed for "recycling" are shipped abroad to countries such as China, India, and Pakistan. Researchers found that approximately 13 million computer systems were channeled to recyclers in the United States during 2002, suggesting that up to 10 million of these units moved offshore to parts of Asia. In response to the growing concern over how China will manage its increasing piles of waste electrical and electronic equipment (e-waste), central government departments have drafted a number of interrelated legislations. A national pilot program has also been initiated by the National Development and Reform Commission (NDRC) to determine the most suitable model for a Chinese e-waste management system. Growing interest in the e-waste recycling business from the private sector is another indicator of the significant changes in store for China's largely unregulated and environmentally unsound e-waste processing industry. The rationale behind these legislative and market developments is clear, driven by factors such as the environmental and health impacts of e-waste recycling and disposal, and the incentive of complying with international environmental standards. Discussion America discards thousands of tons of e-waste annually. Most of this e-waste consists of computers and electronic items. Computers and electronic equipment contains toxins. The toxins in computers aren't harmful while the computer is intact. The problems start only after the computer is discarded and breaks apart, leeching its ingredients into the environment. In China, e-waste is becoming an important waste stream, both in terms of quantity and toxicity. E-waste refers to discarded appliances, such as televisions and refrigerators, as well as a variety of associated waste products, such as electrical wiring, printed wiring boards (PWBs), and batteries. E-waste also contains a myriad of toxic components and materials that can cause significant damage to the environment and human health if recycling and disposal is unregulated. China's e-waste can be sourced both to domestically produced and discarded products and imported waste. China is the destination for a substantial proportion of e-waste from developed countries, ostensibly exported to developing countries for 'reutilization'. For example, representatives within the United States' recycling industry have indicated that around 80% of the e-waste they receive is exported to Asia, and 90% of this goes to China (BAN et al., 2002). Although figures on the actual quantity of e-waste imports are unavailable, certain news reports in China claim that imports are an increasing problem, and have spread from Guangdong to Hunan, Zhejiang, Shanghai, Tianjin, Fujian and Shangdong (for example; The People's Daily, June 21, 2004). In response to this influx of e-waste imports, the Chinese government announced a ban on the import of the seventh category of waste in China's waste catalogue, including waste appliances and electronic products, which came into effect on February 1, 2000 (SEPA, 2000). Although the long-term generation of e-waste has yet to be determined, with rapid industrialization since the 1980s, a peak period in both the ownership and dumping of household and office appliances is also expected in China. China will witness the additional purchase of an estimated 5 million new computers, 4 million refrigerators, 5 million clothes washers, and 10 million televisions every year after 2003 (Xinhuanet, May 23, 2004). Moreover, the majority of e-waste in China is processed in small workshops using basic methods such as manual disassembly and open incineration. The appliances are stripped of their most valuable and easily extracted components and materials, while the remainder is dumped. The most prominent areas for the small-scale, unlicensed processing of e-waste are in southern Guangdong Province, and around the city of Taizhou, in eastern Zhejiang Province. The town of Guiyu, in Guangdong, attracted international attention after a report by non-governmental organizations, including the Basel Action Network (BAN) and Greenpeace China, on e-waste trading and processing in Asia. This was the most prominent example of an international initiative stemming against e-waste disposal was the 1989 Basel Convention on the Control of Transboundary Movements of Hazardous Wastes and their Disposal (in force since 1992). The Convention puts an onus on exporting countries to ensure that hazardous wastes are managed in an environmentally sound manner in the country of import. Apart from Afghanistan, Haiti, and the United States of America all 164 signatory countries have ratified the convention (Secretariat of the Basel Convention). The transboundary movement of electronic waste, or e-waste, is regulated by the Basel Convention (UNEP, 1989), as it is considered to be dangerous to humans and the environment under the List A of Annex VIII of the Convention. There are highly toxic substances in e-waste such as cadmium, mercury and lead. However, e-waste also contains valuable substances such as gold and copper. Recovering these metals from e-waste has become a profitable business, resulting in global, transboundary trade in e-waste. Countries such as China and India face a rapidly increasing amount of e-waste, both, from domestic generation and illegal imports form America. For emerging economies, these material flows from waste imports not only offer a business opportunity, but also satisfy the demand for cheap second-hand electrical and electronic equipment. In addition, the lack of national regulation and/or lax enforcement of existing laws are promoting the growth of a semi-formal or informal economy in industrializing countries. An entire new economic sector is evolving around trading, repairing and recovering materials from redundant electronic devices. While it is a source of livelihood for the urban and rural poor, it often causes severe risks to humans and the local environment. Most of the participants in this sector are not aware of the risks, do not know of better practices, or have no access to investment capital to finance profitable improvements. Guiyu is an established e-waste recycling centre, made up of many small-scale enterprises. Investigations carried out in December 2001 by BAN and Greenpeace personnel indicated that the growth of this industry has lead to serious environmental and health impacts in the area (BAN et al., 2002). The potentially hazardous recycling practices witnessed in Guiyu included the manual and unprotected removal of printer cartridge toner, the open incineration of wires to recover copper, the de-soldering of printed wiring boards, and the use of acid baths to retrieve gold from chips and other components. Children are also employed in sorting plastic chips for recycling. In addition, the report states that large amounts of materials and residues were being dumped in fields, rivers, and irrigation ditches. Water samples taken by BAN at the same locations on the Lijiang River show cadmium content in the range of 0.01-0.033 mg/L, compared to the WHO guideline of 0.003 mg/L, and lead content varying between 1.9 and 24 mg/L, higher than the WHO guideline of 0.01 mg/L. Due to groundwater pollution, Guiyu's drinking water has been delivered from a nearby town since approximately 1 year after the appearance of the e-waste industry. Further, studies claims that a large proportion of the e-waste found in Guiyu originated in the USA, Japan and Europe. A portion of the 10,000 villagers in this city who disassemble computers for U.S.$ 1.50 a day are profiled, and occupational hazards are that the locals work in unsafe conditions amidst mountains of e-waste in rivers, on hillsides, and in drainage ditches. A native thinks the negative impact on their living environment. The population continues to use the river for bathing and washing, and thus the toxic waste from the USA originated e-waste comes in contact with innocent locals, which has profound effect on their health and wellbeing. Although awareness and readiness for implementing improvements is increasing rapidly, there are many obstacles to manage end-of-life products safely and effectively in industrializing countries: the lack of reliable data poses a challenge to policy makers wishing to design an e-waste management strategy and to an industry wishing to make rational investment decisions. the lack of a safe e-waste recycling infrastructure in the formal sector and thus reliance on the capacities of the informal sector may pose severe risks to the environment and human health. However, collecting and pre-processing can be handled efficiently by the informal sector and - at the same time - can offer numerous job opportunities. the lack of international standards for simple but efficient e-waste management systems delays their implementation. As a first step, the collection of 'best practice' examples or 'lessons learnt' from carefully designed pilot implementations in industrializing countries would help to accelerate the mitigation process. Studies in Delhi, Beijing and Johannesburg have revealed deficits and suggest the following recommendations: Technology and skills: Support (in)formal SMEs and larger smelting industries (processing metal, glass and plastic wastes) through specific training and consultancy in cleaner technologies and process handling to improve current e-waste processes by introducing best affordable technologies (BAT) and by upgrading and qualifying low-and medium-skilled labor. Policy and legislation: Support municipalities and/or provincial governments in the drafting, the (public) consultation and the implementation of legislation on e-waste handling by offering advice and exposure and by testing pilot management schemes. Business and finance: Support securing economic efficiency and sustainability of e-waste management systems by optimizing the value added and improve the effectiveness of collection and recycling systems (e.g., public-private-partnerships in setting up buy-back or drop-off centers) and by designing-in additional funding e.g., advance recycling fees (ARF). Prevention of e-waste hazard There are numerous things which can be done in order to limit the damage of e-waste. Some of these things include: 1. Sell the computer when it is no longer needed. It might not be wroth much money, but the computer will go to someone who will use it, and as long as it's in use, it's not a hazard. The online auction company eBay has launched a program to reduce e-waste through reselling. (Ebay) 2. Donate the computer. Many school districts and community centers happily accept older computers. 3. Recycle the computer the right way. To find a responsible recycler, a local or state environmental group, such as the Silicon Valley Toxics Coalition in California can be contacted. When the recycler is contacted, it may be asked whether it has taken the Basel Action Network pledge not to dump computers in developing countries. (BAN) 4. Shop responsibly. Americans should learn whether the company they are buying from has a recycling program and what it costs. The best solution to e-waste-no waste at all-is still waiting to be invented. Some companies, such as Panasonic, are trying to come up with designs for computers that do away with heavy metals entirely. Although this is a very difficult task, we can pin our hopes on the best technological advancement the future has to offer. E-waste disposal has become a very important ethical and legal issue and Americans need to look at this problem with responsibility. Although it is true that nations take decision in the best interest of their citizens, but responsible nations take a step further and are watchful of not inflicting pain and trouble to others due to their actions. This is the approach Americans need to adopt and thus adopt an "Us" approach rather than "I". An action of mutual benefit would drastically improve the goodwill of the nation and would create an impression of a very responsible nation in the eyes of the rest of the world. These problems should be viewed with an ethical point of view, instead of just focusing on the benefits of getting rid of e-waste. Conclusion E-waste is an emerging ethical and legal issue, driven by the rapidly increasing quantities of complex end-of-life electronic equipment. The global level of production, consumption and recycling induces large flows of both toxic and valuable substances. An examination of China's fledgling e-waste management system has shown that attempts to regulate and industrialize the processing industry are facing a major challenge in terms of financing and collection. The pilot programs in Qingdao and Zhejiang, as well as newly established facilities, are finding it difficult to compete with China's large and unregulated informal sector. Informal collectors and second-hand appliance dealers remove e-waste from the waste stream before formal recycling companies can obtain it, and divert it to informal processing workshops and poorer regions of China. The international regulations mainly developed under the Basel Convention, focusing on a global ban for transboundary movements of e-waste, seem to face difficulties in being implemented effectively; however, a conclusive account of the situation and trends is not yet possible. On a global scale some attempts have been made to identify past, present and future e-waste streams. The focus has been laid on quantities and in some cases on routes and spatial distribution, but a global perspective is still lacking. Although America needs to develop expertise in all areas to tackle the potential e-waste management problems, most countries already have specific expertise, which can be used and shared. To optimize learning and maximize the efficiency of support for implementing improvements, a knowledge partnership in e-waste management is proposed in the form of an international e-waste Competence Centre. Partnerships among developing and developed countries offer the possibility to develop new models for e-waste management that will benefit users, manufacturers, and recyclers in all countries. Bibliography Agarwal et al., 2003 R. Agarwal, R. Ranjan and P. Sarkar, Scrapping the hi-tech myth: computer waste in India, Toxics Link (2003) New Delhi. 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