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launched numerous unsuccessful campaigns in the past touting their interest in the
environment, particularly the world’s oceans. Thus, consumers did not perceive
StarKist’s efforts as sincerely “green.”
You might argue that The Body Shop’s customers are unusually price
insensitive, hence the success of its environment-based strategy. However,
individuals are willing to pay more for organic produce, so why not dolphin-safe
tuna? One difference is that while the environment is a public good, organic produce
produces both public and private benefits. For example, organic farming is better for
the environment and pesticide-free produce is believed to be better for the health of
the consumer. Dolphin-free tuna only has the public environmental benefits (i.e.,
preserve the dolphin population and oceans’ ecosystems), not the private ones like
personal health. It is true that personal satisfaction and benevolence are private
benefits, too. However, consumers did not believe they were getting their money’s
worth in this regard for StarKist tuna, whereas they do with The Body Shop’s
products.
Somewhere in our dialogue on CSR lies the idea of making the solution of an
environmental or social problem the primary purpose of the organization. Cascade
[8]
Asset Management (CAM), is a case in point. CAM was created in April 1999, in
Madison, Wisconsin, and traces its beginnings to the University of Wisconsin’s
Entrepreneurship program where the owners collaborated on developing and
financing the initial business plan. CAM is a private, for-profit enterprise established
to provide for the environmentally responsible disposition of computers and other
electronics generated by businesses and institutions in Wisconsin. With their
experience and relationships in surplus asset disposition and computer hardware
maintenance, the founders were able to apply their skills and education to this new
and developing industry.
Firms are willing to pay for CAM’s services because the disposal of surplus
personal computers (PCs) is recognized as risky and highly regulated, given the many
toxic materials embedded in most components. CAM’s story is also credible
(whereas StarKist had trouble selling its CSR story). The company was one of the
[9]
original signers of the “Electronic Recyclers Pledge of True Stewardship.” Signers
of the pledge are committed to the highest standards of environmental and economic
sustainability in their industry and are expected to live out this commitment through
their operations and partnerships. The basic principles of the pledge are as follows:
no export of untested whole products or hazardous components or commodities
(CRTs, circuit boards) to developing countries, no use of prison labor, adherence to
an environmental and worker safety management system, provision of regular testing
and audits to ensure compliance, and support efforts to encourage producers to make
their products less toxic. CAM has grown rapidly and now serves over 500 business
and institutional customers from across the country. While it is recognized as one of
the national leaders in responsible, one-stop information technology (IT) asset
disposal, its success is attracting new entrants such as IBM, which view PC recycling
as another profitable service they can offer their existing client base. [10]
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