The commitment to making the world a better place drives just about everything at Terra Cycle, an eco-friendly company that makes consumer products entirely out of garbage. The company is staffed primarily by young people who share a vision of growing a better world. Founder and CEO Tom Szaky is devoted to the notion of eco-capitalism, which, he argues, involves a business model that differs from those of other companies that claim to be “green.”

According to Szaky, other businesses simply take existing practices, look for ways to make them more environmentally friendly, and then pass the additional costs on to consumers.

In contrast, eco-capitalism involves completely rethinking the entire process—and doing what is best for the environment—

but without charging premium prices. Following this new model requires an organizational culture that demands flexibility from employees along with a willingness to change direction quickly and to occupy multiple roles.

According to Albe Zakes, director of public relations, employees at Terra Cycle are given many responsibilities and are empowered to handle them in their own way. He notes that although there is a set of checks and balances in place, it is not unusual for him to hand off a project with only very loose guidelines instructing a subordinate as to what to do. The sense of empowerment is evident in many areas at Terra Cycle, from R&D to production to marketing.

Even interns at the company note that they receive far more freedom and responsibility than they would be given at most companies.

Inside the graffiti-covered walls of Terra Cycle’s New Jersey headquarters is a scene of organized chaos, and the prevailing feeling is to get done what needs to be done and then move on. There are no rules as to how something is to be completed. Employees figure things out as they go.

Zakes believes that the close relationships among employees at Terra Cycle and the shared belief that they are making the world a better place are significant factors in the company’s success.

Discussion Questions 

1. How are the core characteristics of organizational culture presented in Chapter 14 displayed at Terra Cycle?
2. Using the discussion of strong versus weak organizational culture presented in Chapter 14 as a starting point, how would you describe the organizational culture at Terra Cycle?
3. In which category of the competing values framework discussed in Chapter 14 would you place Terra Cycle?