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China’s E-waste Challenge: Can Baidu’s Innovative CSR Initiative Lead by Example?

CASE STUDY, CORPORATE SOCIAL RESPONSIBILITY
ET Cases, 23 Pages
AUTHOR(S) : Vandana Jayakumar, Bala Bharathi Yelamanchi, Syed Abdul Samad and Dr. Nagendra V. Chowdary

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China’s E-waste Challenge: Can Baidu’s Innovative CSR Initiative Lead by Example?

 

“The United Nations and business need each other. We need your innovation, your initiative, your technological prowess. But business also needs the United Nations. In a very real sense, the work of the United Nations can be viewed as seeking to creat  the ideal enabling environment within which business can thrive.”

–Ban Ki-moon, Former United Nations Secretary-General

 

Over the years, world’s transition towards a more digital and information technology-centric socio-economic system offered unparalleled avenues for sustainable development. It, however, also fueled exponential growth in the consumption of Electrical and Electronic Equipment (EEE) and resultantly increasing volumes of e-waste posing a global challenge. On March 21st 2018, United Nations’ (UN) organizations actively involved in addressing the global e-waste challenge signed a ‘Letter of Intent’ to strengthen the coordination and collaboration on UN system-wide support for e-waste management. The signing of the ‘Letter of Intent’ furthered the ongoing work of the Environment Management Group (EMG) which coordinated the collaborations among UN organizations in the areas of e-waste management.

While e-waste is a global challenge, over the decades, China earned the dual distinction of being one of the largest exporters of EEE and also one of the largest generators and importers of e-waste. Continuously increasing volumes of e-waste posed environmental and health hazards in China forcing the Chinese Government to take strict actions..............

GLOBAL E-WASTE CHALLENGE

Since the onset of the 21st century, Waste Electrical and Electronic Equipment (WEEE), commonly referred to as e-waste, became the world’s fastest-growing form of waste. Though it represented only 2% of solid waste streams, yet it accounted for 70% of the hazardous waste that ended up in landfills. It was estimated that the global e-waste volume reached 48. Mt5 in 2018. According to a report launched at Davos 2019, the growing volumes of e-waste would weigh more than 125,000 Boeing 747 jumbo jets which would be enough to build 4,500 replicas of the Eiffel Tower every year...............

UN’S COLLABORATIVE EFFORTS TO ADDRESS THE GLOBAL E-WASTE CHALLENGE

The UN plays an important role in the control and disposal of e-waste through several initiatives across the globe. Headquartered in Manhattan, New York City, US, the UN is an intergovernmental organization, with 193 member states. The UN was founded on October 24th 1945, with an aim to maintain international peace and security, friendly relations and cooperation among nations and harmonizing their actions. The UN tries to fulfil its aims through its entities (UNDP, UNEMG, UNU, etc.) and its specialized organizations and agencies (ILO, IMF, WHO, World Bank Group, etc.) along with the country governments, NGOs and private entities............

CHINA’S E-WASTE CONUNDRUM

In December 2001, a study by Basel Action Network (BAN) on the e-waste recycling conditions in China, found that during 1995-2001, Guiyu, a Chinese town, had transformed from a rice-growing community into an e-waste recycling center, and went on to become the ‘E-waste Capital of the World’. This completely polluted Guiyu’s ecology and exposed residents to various health hazards. As per a report from Shantou University, “Guiyu has the highest level of cancer-causing dioxins in the world and elevated rates of miscarriages”. The environmental calamity of Guiyu highlighted the e-waste problem in China..............

China’s E-Waste Collection and Recycling Systems

In China, the formal and informal system of e-waste collection and recycling co-existed (Exhibit XIV). However it was the informal sector that dominated e-waste management system in China. To counter the rising problem of e-waste, China undertook several initiatives starting 2000 (Exhibit XV)............

‘BAIDU RECYCLE’ AS AN INNOVATIVE INITIATIVE

Birth of ‘Baidu Recycle’

In 2014, one of the 23 UN and related entities, UNDP, was looking for partners in China who could offer more effective ways of designing and delivering development solutions rather than just contributing money. With the aim to work on projects with impact, UNDP China office established an innovation task force with Louise Li (Li) as Communication and Innovation Officer..........

Partnerships for Greater Impact

The UNDP worked with Baidu’s Big Data Lab and TCL Corporation (TCL) (a Chinese electronics manufacturer engaged in recycling e-waste since 2009) to create a formidable e-waste disposal and recycling platform, in an attempt to crack down on the informal sector that recycled e-waste illegally, causing hazardous impact on human health and the environment...........

Operating Model

‘Baidu Recycle’ deployed an operating model akin to Uber taxi app by connecting the users who needed the service with the service providers. ‘Baidu Recycle’ was the first of its kind e-waste app piloted in China which did not need to be downloaded and could be accessed just by searching for ‘Baidu Recycle’ in the Baidu search ap...........

Global Recognitions

‘Baidu Recycle’ was recognized by the UN as one of the top global solutions when the app emerged as one of the 14 winning innovations among 800 entries (from over 100 countries) showcased at the Global Solutions Summit held in New York on September 27th 2015...........

Challenges

While Baidu showed an effective way to overcome the inherent challenges of e-waste management in China, it faced several challenges................

ADDRESSING THE GLOBAL E-WASTE PROBLEM: AN UPHILL TASK?

Effectiveness and Sustainability of Various UN Collaborations

While there were several collaborations in place involving 23 UN and related entities for addressing the e-waste problem, the effectiveness and sustainability of these collaborations was threatened by a host of challenges...........

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Challenges in Tackling the Global E-waste Problem

It was argued that the fashion cycle and life-span of many EEE and products containing EEE components had shortened, increasing the likelihood of higher e-waste generation. Thus, while on the one hand it was the responsibility of EEE manufacturers to extend the life-cycle of their products, on the other it called for a societal change in consumer behavior to inculcate a sense of recycling and reusing EEE and each person taking the onus of contributing towards saving the environment with or without incentives............

Assignment Questions

I. Explain the factors that led to mounting global e-waste challenge, reasons for continuous flow of illegal imports into developing economies and ways to effectively address the e-waste challenge.

II. What is sustainable development? How will the Sustainable Development Goals (SDGs) be implemented? Discuss the role of UN’s collaborations in achieving the SDGs.

III. Considering China’s e-waste problem, discuss and debate on the country’s inability to find a holistic solution to the e-waste challenge. What are your suggestions for managing China’s e-waste problem?

IV. ....................

Exhibits

Exhibit I: E-waste Categories

Exhibit II: Percentage of Households with Internet Access and a Computer, and Percentage of the Population Using the Internet, 2007-2017

Exhibit III: Global E-waste Generated (2014 – 2021e)

Exhibit IV: Countries that Generate the Most E-waste (2016)

Exhibit V: Classification of Materials in E-waste

Exhibit VI: Mining E-waste Gold

Exhibit VII: International Agreements

Exhibit VIII: Millennium Development Goals (MDGs)

Exhibit IX: Sustainable Development Goals (SDGs)

Exhibit X: SDGs’ E-waste Targets

Exhibit XI: UN and Related Entities Involved in E-waste Initiatives

Exhibit XII: Number of E-waste Initiatives by UN Entities

Exhibit XIII: Sales of Five Major Home Appliances in China (1995-2011)

Exhibit XIV: China’s E-waste Collection and Recycling Systems

Exhibit XV: China’s Efforts to Address the E-waste Challenge

Exhibit XVI: Statistics on the Usage of ‘Baidu Recycle’

Exhibit XVII: Baidu Recycle - Operating Model

Teaching Note Preview

China’s E-waste Challenge: Can Baidu’s Innovative CSR Initiative Lead by Example?


Synopsis

This case is the story of how a diverse group of stakeholders, including one of the United Nations’ (UN) entities, two private business entities, supported by a government entity, came together to address a pressing global issue of e-waste at a national level.

China is one of the largest exporters of Electrical and Electronic Equipment (EEE) and also one of the largest generators and importers of e-waste. Though the country had introduced multitude of policies to regulate and address the e-waste menace in the country, its consistently increasing volumes posed threat to both public health and environment.

UN, on the other hand, had been signing conventions, agreements and collaborating with various governments as well as social and private entities to find lasting solutions to the global problem through numerous initiatives world-wide. One such solution is the ‘Baidu Recycle’ app, which was born out of partnership between UNDP, Baidu Inc., (Baidu) and TCL Corporation (TCL) along with the support of China’s Ministry of Environment Protection (MEP). Though the initiative was successful in terms of collaboration, development and implementation, it faced challenges in terms of its economic viability and sustainability due to lack of funds. This teaching note analyzes the effectiveness of such collaborations, the need and means to sustain these initiatives and the roles of government, NGOs or private sector in nurturing such initiatives.

Prerequisite Conceptual Understandings and Before the Classroom Discussions

The students should be asked to read the case and related theoretical concepts, prior to the classroom discussion. They could also be encouraged to read/research about the various entities presented in the case, their area of operations, their initiatives, etc. The students should also be prepared with the concepts like corporate social responsibility, international collaborations, government operations, inter-state relations, public policy, foreign policy, international relations, etc., to have a better
understanding of the concepts related to the case study.

They could also be asked to write a note or their own analysis on the various topics discussed in the case or in the assignment questions. The instructor can give one topic each to a select group of 5-6 students for analysis.

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Preamble to the Case Analysis and Discussion Dashboard

The case deals with one of the collaborative efforts of UNDP (a UN entity) in China, in partnership with Baidu (a technology firm), and TCL (a recycler) to address the country’s e-waste problem, with the support of a government agency.

The analysis/classroom discussion of this case study can be conducted in three stages. First, the class can discuss the seriousness and extent of the global e-waste problem and how the UN and its related entities are trying to tackle it through numerous partnerships with various governments, Civil Society Organizations (CSOs) and private businesses. Here, the reasons for growth of e-waste and ways to tackle it can be debated upon. In addition, the role of UN entities in fighting global e-waste menace can be highlighted, giving special emphasis to the working and collaborative efforts of UNDP.

Next, the students can debate on the reasons behind the rise of e-waste problems in China and the UNDP-Baidu-TCL initiative – ‘Baidu Recycle’ App – its various stages of innovation, the impact and the ways in which it can viably be scaled up. Finally, the class can discuss the challenges that arise in such international collaborations and discuss the ways in which these can be streamlined to gain maximum benefit out of them. The role of governments also can be discussed in sustaining such innovative initiatives that help in reaching the target set for Agenda 2030.

The above-mentioned stages set the context for classroom debate and the discussion could smoothly be steered from one assignment question to the next, giving out insights at each stage of the discussion. A sample discussion dashboard is given below [Exhibit (TN)-I] to give an idea on the main points that can be discussed in the classroom......................

Exhibits

Exhibit (TN)-I: Classroom Discussion Dashboard

Exhibit (TN)-II: Reasons for Illegal e-waste Trade

Exhibit (TN)-III: Toward Circular Economy to Tackle E-waste Conundrum

Exhibit (TN)-IV: Factors Behind the Emergence of E-Waste Problem in China

Exhibit (TN)-V: Domination of the Informal Recycling Sector over the Formal Sector – An Analysis

Exhibit (TN)-VI: Stakeholder Analysis and Overcoming the Challenges

Exhibit (TN)-VII: Stages of Product Innovation Cycle

Exhibit (TN)-VIII: Collaboration of Key Stakeholders for an Initiative with Social Impact

Exhibit (TN)-IX: Baidu Recycle: Type of Innovative Initiative Model

Exhibit (TN)-X: Operating Model of Government-based ‘China Recycle’ App

Exhibit (TN)-XI: ‘China Recycle’ App as a Sustainable Business Model

Exhibit (TN)-XII: Recommendations for Global E-waste Management Initiatives

Exhibit (TN)-XIII: Framework for Creating Shared Value through Partnership and Collaboration

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Abstract

This case is the story of how a diverse group of stakeholders, including one of the United Nations’ (UN) entities, two private business entities supported by a government entity, came together to address a pressing global issue of e-waste at a national level.

China is the largest exporter of electrical and electronic equipment and the largest generator and importer of e-waste. Though the country had introduced multitude of policies to regulate and address the e-waste menace in the country, its consistently increasing volumes posed threat to both public health and environment.

UN, on the other hand, had been signing conventions, agreements and collaborating with various governments as well as social and private entities to find lasting solutions to the global problem through numerous initiatives world-wide. One such solution/initiative is the ‘Baidu Recycle’ app, which was born out of partnership between UNDP, Baidu Inc., and TCL Corporation along with the support of China’s Ministry of Environment Protection. Though the initiative was successful in terms of collaboration, development and implementation, it faced challenges in terms of its economic viability and sustainability due to lack of funds. How effective are the collaborations and what does it take to sustain the outcomes of such collaborations? What is the role of the government, the NGOs/civil society organizations and private sector in nurturing such collaborations?

Pedagogical Objectives

  • To understand the global e-waste problem and UN’s collaborative efforts in developing and implementing corresponding solutions to achieve the Sustainable Development Goals
  • To understand the extent of China’s e-waste problem and assess the effectiveness of ‘Baidu Recycle’ as UNDP’s collaborative and innovative approach to tackle it
  • To analyze the challenges in effective execution of collaborative partnerships to solve e-waste problem and to debate on the role of the governments in making innovative initiatives sustainable

Case Positioning and Setting

This case is best used for master’s level students in Corporate Social Responsibility, International Affairs, Public Administration, Economic Development, and Environmental Management programs. The case is also appropriate for executive education programs, since public administrators (government, non-profit and others) are likely to recognize the contingencies of collaborative stakeholder work and would benefit from the insights from this case.



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