CASE 20
Best Buy Fights against Electronic Waste
CASE NOTES FOR INSTRUCTORS
The Best Buy case encourages students to contemplate the important ethical issues of stakeholder
relationships and sustainability. Best Buy, a major electronics and entertainment retailer, has become
known for its extensive recycling program. This program has even earned the company a spot on
Ethisphere magazine’s World’s Most Ethical Companies. Best Buy has also been recognized for its
emphasis on ethical conduct. Its Chief Ethics Officer, Kathleen Edmond, won the honor of being listed in
Ethisphere’s Most Influential People in Business Ethics.
employees to do the same.
However, consumers are most likely to be familiar with Best Buy’s recycling program. Many students
have probably even used it. Because electronic waste is becoming an enormous problem, Best Buy
encourages consumers to recycle electronic items with the company. The program allows consumers to
recycle their old electronics no matter their condition or brand. Best Buy also has a trade-in program,
recycling kiosks in its U.S. and Canadian stores, and a TV and appliance pickup service.
QUESTIONS AND DISCUSSION
1. Why do you think Best Buy has been able to gain competitive advantages in the retail electronics
market while also driving many initiatives to support sustainability?
Students should be able to identify that the two objectives—competitive advantage and supporting
sustainability—are not mutually exclusive. Best Buy has been the leading big-box electronics retailer
for several decades. The company has used its market position to provide the cutting-edge products
134 Case 20: Best Buy Fights against Electronic Waste
2. Do you think the resources Best Buy dedicates to help consumers recycle their old electronic devices
represent a good investment for Best Buy?
Most students will likely answer in the affirmative. Best Buy is reducing the risk of the ownership of
electronic products that can become obsolete quickly through its buy-back program. It is creating
3. How do Best Buy’s social responsibility efforts impact key stakeholders such as employees,
shareholders, consumers, and suppliers?
Best Buy is taking a stakeholder orientation and recognizing the importance of good relationships
with employees, shareholders, consumers, suppliers, regulators, and the community. Best Buy does
not seem to be elevating one stakeholder above others and has developed an effective program of
social responsibility that enhances its reputation. Customer loyalty is positively correlated to an
organization’s good reputation and consumer trust. Therefore, by earning a reputation as a socially
responsible company, Best Buy will most likely increase its consumers’ loyalty to the chain.
announced that Best Buy made the Dow Jones Sustainability Index for the second year in a row.
ADDITIONAL RESOURCES