Introduction
With the proliferation of computer technology in every sector of life, disposal of old and unused computers is increasingly becoming an issue of great concern. There are various options of disposing computers. Companies have to really look into various options for disposal rather than dumping computers into landfills because of the adverse effects on the environment. It is also expensive as there are potential liabilities and disposal costs by the government that arise when the company uses this option. The federal and state governments have put environmental laws. Several states have banned computer landfilling. Secondly, there is the risk of outsiders removing the hard disks and recovering sensitive or restricted information.
Computer Disposal Options
There are several alternatives to dumping computers in landfills such as:
Selling: This involves the company giving the computers to other people or an organization for their use. These computers can be sold in a secondary market to employees or charitable organizations. Companies use an internet auction site or advertising in the media. Companies such as eBay and Amazon involve themselves in helping the client value the computers for tax purposes. The organization has to weigh the costs involved in selling the old computers verses the costs of the old computers. At times the computer has really become obsolete or depreciated and its value is far less than managers believe it to be.
The original cost of the computer is a sunk cost. The company should therefore consider the marginal costs verses the marginal benefits (Meyer, Ella & Young, 2004). There are benefits when the company chooses to sell to the employees at a significant discount. The employees see it as a cost-saving benefit with the company considering them first before selling to outsiders. It will work to increase the employee loyalty towards the company. The company though should document the sale so as to avoid legal liability.
Storage for back-up: There are companies which choose to store the computers for back-up purposes in the event that the working computers break down. Storing computers is not a good option since the computers end up consuming a lot of space that would have been used for storing other company equipment.
Recycling: The Company also has the option of recycling the computers. There are states which have organized recycling programs such as California, Massachusetts and Minnesota while others do not have. Local municipalities usually set up collection points where companies can bring in the old computers every month, quarter or yearly. This option may prove to be quite a challenge. Additionally, the recycling companies charge a fee for the pick-up service and the necessary documentation stating that the computers were recycled safely. The company also has to be careful to use a reputable recycler. Using a non-reputable company with the aim of saving costs will be dangerous since the recycler may not have disposed the old computers safely. This is an option that is suitable for very old or broken computers.
Trade-in: There are computer companies that now allow companies to trade in their old computers. Dell has an initiative known as Dell Exchange where their customers can now donate, trade-n or sell their old computers. For Gateway, their customers receive between $25 and $50 cash refund for donating computers. HP/Compaq gives their customers refund cheques for the value of the old computer. The company then tops up and gets a new computer. The government has recently been proposing regulation that makes it mandatory for companies to institute trade-in programs for their clients. In a state like California, the manufacturer who sells
any computers in the locale will be forced to develop, finance and institute an e-waste recovery system. This is to enable the collection, transportation, recovery, reuse and recycling of old computers.
Donating computers: The Company can also give the old computers to charitable organizations and schools. There are several benefits in donating computers. The tax benefits of donating the computers may exceed the recoverable amount of selling the computers in the secondary market. There are federal and tax credits that accrue to a company when it donates computers to schools. There are organizations that specialize in helping companies to sell their computers. They act as a link between the company and the schools and charity organizations. Computer valuing for tax purposes is done as per the IRS guidelines found in the publications 561 and 562.
This is the best option for the company. Donating computers acts as one of the ways in which the company can show the customers and the public that they are socially responsible and give back to the communities. The charitable organizations assess the needs of the recipients, their capacity for technology support and ability to refurbish the equipment once they receive it. They also work with the disadvantaged members of society such as students with disabilities or economically disadvantaged children. The Microsoft Authorized Refurbishers program was introduced to increase the number of computers available to the charitable or non-governmental organizations (United States Environmental Protection Agency, 2007).
The program reduces the cost of computer software to refurbishing companies. Refurbishers under the program are allowed to install windows 98 second edition, Windows 2000 operating system and Microsoft Works 7.00 software on the computers that are going to be donated to eligible recipients. The companies do not have to purchase a copy of the operating system. The refurbishers also have programs for clearing all corporate data from the machines.
References:
Meyer, M., Ella, W. & Young, R. (2004) Disposal of Old Computer Equipment: A
Mounting Environmental Problem. The CPA Journal Online. Retrieved from:
http://www.nysscpa.org/cpajournal/2004/704/essentials/p70.htm
United States Environmental Protection Agency (2007). Do the “PC” thing: Donate
Computers. Retrieved from: http://www.epa.gov/osw/partnerships/plugin/pdf/pcthing-bus.pdf
