http://www.nytimes.com/2010/01/06/nyregion/06about.html?scp=2&sq=jim%20dwyer&st=cse
So a grad student walking through New York sees people (poor, homeless, or both) sorting through bags of discarded clothing from an H&M store, one that happens to be around the corner from a charity doing a clothing drive. She contacts H&M's Swedish HQ and gets nothing from them, so she contacts the New York Times, instead. Journalism doing what it is supposed to be doing.
Same thing seems to be happening with Walmart, at least in New York. If they can't sell it, it gets mutilated before it gets tossed.
I agree that it sucks, and that clothes that can be used shouldn't just go into a landfill. It is neither green, nor showing corporate responsibility.
But, I get it, too. Stores have been doing this kind of thing for ages. Remember the big box store in my hometown (small midwest chain), that punched holes in everything before it went into the dumpster. However, I think it is a new awareness of people in need that gets our ire up about this.
As the NYT story says, the biggest issue is people getting the clothes from a charity, then trying to return it for cash. Anyone who has worked in retail knows how some people can get when trying to return something. Sometimes, they give them the money just to get them out of the store. (Ask my sister who worked Dec. 26 at the local Walmart. People are crazy.)
My guess (and just a guess) is that these stores are afraid of donating locally because of that, and balk at the cost of shipping to send it to an organization that would give it to people in developing countries (read: somewhere where they will not have a local store to try and return it to).
H&M promised it would not happen again. Walmarts response was a little less robust, but did say in the original story that they were surprised the clothing was in the dumpster, and that it does recycle or donate unsold clothing. All it takes is one unethical hauler for there to be a problem.
I was also anti-Walmart for a long time, until a Walmart opened in my hometown. My sister is working there nights and weekends while running a home-based licensed day care, so that her family can have health insurance. (In North Dakota, BC/BS has like 90-plus percent of the health insurance market).
They work with her schedule and show their appreciation. It is also bringing people who used to drive to Fargo and Fergus Falls, Minn., Walmarts to shop back in town, and people from the small towns around them there, instead of to Fargo.
I read somewhere (may have been on Facebook), from a friend who said that since they would drive to Fergus, anyway, they would go out for dinner, or buy tires, or go to the mall there. Now, he is more likely to do those other shopping trips in town.
Again, I am all for corporate responsibility and doing the "green" thing. But I don't think Walmart or H&M deserves to be the whipping boy for this topic, either.