The World Most Ethical Companies: Waste Management Inc. Sample Essay

Waste Management Inc.


Ethosphere in the year 2003 recognized Waste Management Inc. as one of the best leading ethical companies. The company was honored with the same for the third time consecutively for enhancing global ethical standards. Waste Management secured the position on the competitive list of nominees by developing, implementing and enhancing business initiatives that are vital for the success of the organization and beneficial to the community.

As witnessed in various areas of undertakings, Waste Management Inc. operates in responsible ways for its employees, clients and the environment. The company currently has been endorsed as a top Provider of Integrated Environmental practices in North America. The company, based in Houston, Texas offers a wide range of waste management services including disposal services, recycling and collection an indication of its commitment to corporate social responsibility in its operating zone (Ferell, 2013, p. 345).

For businesses in many countries to be considered as socially responsible, many auditing and reporting agencies on social and environment must be carried out clearly. Ethosphere institute through this and other scholars have produced an elaborate report on the scores of Waste Management Inc. as the best in CSR key areas. The integrated report also offers a holistic view of company performance in environmental, social and economic parameters.


Waste Management Inc. as per research studies is the best solution provides serving a demographic of over 20million people in Canada, Puerto Rico and USA. The company has merged with communities and customers to reduce and manage waste. As one of the strategies committed to providing and developing new waste solutions that help organizations and communities to achieve classical living methods.

Entire business of waste management is integrated to meet the needs of each distinct group. In 2012, documentary evidence revealed that it worked with more than 500 and 100 civil societies to help in reclaiming 1500 communities that were overtaxed by garbage. Being the largest company in North America, it is expected for the residential recycler to manage 20million tons of waste by 2020 to ensure a cleaner and safer environment for living.

Using the garbage, it is successfully operated over landfill gas projects 138, producing enough energy to power 500,000homes successfully. Additionally, its ability to produce renewable energy of 2000megawatts renewable energy has been beneficial to citizens of North America. This has been used for domestic and industrial purposes in North America States.

Renewable energy is also operated by recovering naturally occurring inside landfills to generate electricity popularly known as landfill energy to gas (Ferell, 2013, p. 345).



Research evidence shows that the Company provides comprehensive social services to its employees that consist health related issues, family retirement benefit scheme and professional capacity building. It is also evidenced clearly that the company is highly committed to offering real time healthcare services in areas such as disability management, drug prescription and retiree medical package.

The company trains and sponsors qualified employees for further studies on environmental issues. Additionally, it offers a paid vacation package to increase employee motivation. These are primarily designed to build employee energy, confidence and certainty resulting in increased percentage of a high number of workers (Epstein, 2008, p. 234).

Financial and educational benefits

There are different reports over the past years indicating that companies have used their educational and financial enticements to enhance its ethical standards towards employees. This is a financial responsibility that has paved way for building an employee capacity that meets global standards, thus minimizing risks involved with unskilled workforce and accelerating professionalism.

Loans, monetary donations, mortgage and overtime payments among related incentives have also been used in the past years to attract qualified workforce and to boost morale amongst employees in the company. This has also enabled the company to achieve its objectives and goals effortlessly thus, implementing and developing strategic plans for the company’s growth to becoming the world’s most ethical companies (Robbins, 2001 p. 457).

The other factor that has enhanced cohesion within the company is the fact that it has invested in employee diversity thus, bringing together qualified personnel from different races, gender and cultures. It has been achieved through mutual understanding and interactions (Robbins, 2001 p 458).

Corporate Share Value

The companies as documented in different reports have utilized the share value strategy to archive their annual success. It also believes in the relationship of a healthy society and a working nation, a fact that has enabled the company to act responsibly towards the environment and stakeholders at large. The company through the well-coordinated strategies has been able to provide clear insights and corporate social fair strategies. It has also enabled it to create more avenues for tax revenues, wealth and philanthropy.

The company believes in recycling as one of the best and sustainable long term method of managing industrial and domestic waste. Up to 14million tons of waste products are currently managed by the company and it is recycled yearly. It is a mechanism that helps to reduce environmental pollution that mainly occurs as a result of global warming (Epstein, 2008. P. 234).


Additionally, the company has included an extra capacity of more than a million tones that is specially designed to expand its single recycling source area. The service area plays a crucial role in making deliveries of more than 40% recyclable materials. Furthermore, it utilizes advanced technologies in recycling different materials such as magnets, optical scanners and screens to automate sorting of recycles.

Such technological advancement shows the company’s commitment in making recycling efficient and productive across North America (Robbins, 2001 p 457).

Recycling Campaign

The company has over the years considered recycling campaign as a strong means of environmental protection. It has realized that the most ideal way to ensure environmental conservation is communicating its benefits to residents. Similarly, it has collaborated with different unions including Keep America Beautiful to help spread the message on environmental awareness.

The purpose of having a recycling campaign is to help create awareness of recycling as a way of environmental conservation (Robbins, 2001 p. 457).

Weakness and Recommendation

In a report evidenced on the benefit of corporate social-economic responsibility, it is clear that Waste Management’s crucial financial records may not be impressive. The table trend on the company’s return equity outlays that WM has a success rate of 54%. Additionally, a profile that shows that is the situation or company is not managed promptly, it may not achieve its competitive benefits of employed resources (Robbins, 2001 p 457).


Passing Criteria Year 3 change Grade
Revenue growth > 30% 12.8% pass
Fast-tracking profit margin (16.8%) pass
Current flow growth > Net income growth (3.7%) vs. (6.1%) Pass
Accelerating  EPS (2.4%) Fail
Stock growth (+ 15%) < EPS growth 37.2% vs. (2.4%) Fail


WM Returns on Equity

Passing Determinant Year 3 change Grade
 Return on equity (9.9%) pass
Decelerating debt to equity 2.2% Fail
Dividend growth > 25% 15.9% pass
Free currency flow payout ratio < 50% 59.4% pass


As displayed in the WM Returns Equity graph, WM has posted many impressive results in the last quarter based on its grass margin enhanced by more than 150 basis points, as its disposal and collection yield rose to 2.3%. This marginal is also considered inappropriate for the family.

Research studies also reveal that increased labor prices and recycling as the main factor dragging the company behind (Epstein, 2008, p. 234).  The studies also recommend that the company has to employ an ideal Waste Management policy capable of offering management solution that can benefit the society and companies achieve set goals.

Their environmental strategies should also be coupled with the right economic approaches to ensure the company achieves better returns as they progress with their mandate to provide Corporate Social Responsibility and in environmental conservation (Robbins, 2001 p, 456).

It summary, it is evident from this report that Waste Management Inc. has made eminent efforts to ensure environmental justice through the practice period. Even so, they are still facing challenges when it comes to balancing the economy to enhance mechanisms waste disposal. Their outstanding effort to safeguard global social responsibility is a very crucial ethical norm.

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Epstein, M. J. (2008). Making sustainability work: Best practices in managing and measuring corporate social, environmental, and economic impacts.Sheffield, UK: Greenleaf Pub. Pp.234

Ferrell, O. C., Fraedrich, J., & Ferrell, L. (2013) Business ethics: Ethical decision-making and cases Mason, OH: South-Western/Cengage Learning. Pp. 345-456

Robbins, P. T. (2001). Greening the corporations: Management strategy and the environmental challenge London [u.a.: Earthscan Publications Ltd. Pp. 456