• Gateway manufactures and retails computers and computer products.
• Gateway has faced lawsuits and been investigated by the federal government for insider trading, overstated earnings, and misleading investors about financial statements.
• Gateway has been criticized for its recycling program which requires consumers to pay the shipping costs of the items to be recycled rather than the company, creating a disincentive to responsibly dispose of e-waste.
• Join the Electronics TakeBack Coalition in asking Gateway to keep its products out of the waste stream, and use Go Green to find sustainable alternatives.
-- Profile Updated 07/01/2010
Gateway manufactures computers and computer products which it retails directly to consumers via its own Gateway Country stores, the company website or telephone orders. Headquartered in Irvine, California, the company recorded sales of $3.98 billion in 2006 and employed 1,700 people.
Electronics TakeBack Coalition
The Electronics TakeBack Coalition, formerly the Computer TakeBack Campaign, aims to protect the health and well being of electronics users, workers, and the communities where electronics are produced and discarded by requiring consumer electronics manufacturers and brand owners to take full responsibility for the life cycle of their products, through effective public policy requirements or enforceable agreements.
There are no known affiliates associated with Gateway.
Irvine, CA 92618 USA
On the 2005 Computer Report Card, published jointly by the Computer TakeBack Campaign and the Silicon Valley Toxics Coalition, Gateway received a score of 12 for their policies regarding electronics take back, disposal procedures and the materials used in their computers. Gateway was in a four way tie for lowest score, along with Acer, Panasonic and JVC.
-- Silicon Valley Toxics Coalition, 03/07/2006
Basel Action Network (BAN) is a group dedicated to preventing the "globilization of the toxic chemicals crisis." In a 2005 report entitled “The Digital Dump: Exporting Re-use and Abuse to Africa,” BAN examines the current downside to the information technology growth in the industrialized world, focusing on the environmental ramifications in Lagos, Nigeria. The study demonstrates how Nigeria, representative of developing nations, has disproportionately carried the burden of toxic cyber waste. The formal and informal dumps have leached dangerous toxins, such as dioxins, polycyclic aromatic hydrocarbons, and heavy metals, into the air and groundwater. Gateway products were among those found “washed up” on the West African import market.
-- Basel Action Network, 10/24/2005
In April 2004 Gateway announced it would close its 188 retail stores and lay-off 2,500 workers. According to USA Today "Gateway was the only major PC maker to run its own stores. That made it hard to compete with rivals, which didn't have the high cost of store employees and real estate. Gateway's overhead on PCs was often twice as high as rival Dell's, which sells mainly via phone and Internet."
-- USA Today, 04/02/2004
Source URL: none available
Ethics and Governance
In 2006, President and CEO, Theodore W. Waitt, earned $889,563 according to the AFL-CIO and $668,823 in total compensation according to the Securities and Exchange Commission (SEC).
-- AFL-CIO, 07/17/2007
In November 2002, Gateway announced that for almost two years it was under investigation by the Securities and Exchange Commission (SEC). The investigation began the same time the first of six class-action lawsuit were filed against the company. The lawsuits alleged that the company's board of directors and managers included insider trading and wasteful spending on executive severance pay. Jeff Weitzen, who served as CEO in 2000, left the company along with chief financial officer John Todd. Lawsuits filed by shareholders last year asked the company to sue the two for damages. The lawsuits were eventually combined and settled in 2002 for $10.5 million. Through the settlement Gateway admitted no wrongdoing.
-- Associated Press, 11/15/2002
Source URL: none available