This Won't Happen to Me: A Primer on Dealing with The Wrong Recycling Vendor

Managers are hearing more about both environmental responsibility and environmental liability in terms of not only keeping the land free of waste, but also the penalties associated with not doing so. Still, many firms continue to believe that the stories of the computers found with sensitive data still on it, the fines assessed for illegally dumped e-waste, and the reports of foreigners in third-world countries ailing from toxic poisoning are "not me" issues. This is not true for many reasons:

In court cases, the courts found that liability can rest with the generator especially if they were aware that the materials being recycled contained toxic elements.
If assets are found containing identification and are traceable, the assumption is that the liability rests with the owner.
www.bradleyarant.com/pdf/enviro_fall2003.pdf
Violations of security issues from having improperly disposed of assets will be assessed to the generator.
http://www.wired.com/science/discoveries/news/2002/09/54986

The generator can in turn sue the recycling firm, but the reputational damage and effects of poor judgment will persist long after the monetary damage is taken care of.

Recycling firms, like any other business, are in business to make money. They are not motivated by altruism or do-gooder philosophies. This is why caution must be considered when dealing with recyclers that:

Take assets for free. Companies that do this have to make money to pay for logistics, staff, and downstream vendors. How do they make money? By extracting value from high-value metal components, plastics, and other components that can be sold for dollars. Today extracted copper can go for $3/lb. Are these vendors motivated to wipe your drives - not likely.
Rely on export. Overseas presents a great secondary market for used computers and peripherals. Outside of Europe, most recycling efforts are not regulated. Assets are collected, shrink wrapped, palletized, and sent to a recipient for marketing or recycling. Do they care about your data? Not likely.
Are not transparent. Recyclers that do not disclose downstream partners, will not provide facility tours/inspections, or do not properly certify recycling or destruction have something to hide.

Keep in mind also that not only is your firm at risk, but dollars that belong to you are being reallocated to the recycler on every asset.

Check out these recent news articles about shady recycling practices and liability effects:
Pursuing Plastic Poachers, The Star Ledger, Sunday, July 22, 2007.
Market for Illegal E-Waste Shut Down (China). China Daily, June 14, 2007.
I Just Bought Your Hard Drive. MSNBC Report, June 2006.