Ikea - Business Ethics
IKEA in Russia - Ethical Dilemmas
Lusine Demirjian
Business Ehics
I-Executive Summary IKEA is the world’s largest retailer of home furnishings. It strives to provide simple, functional, modern, and useful products at affordable prices to as many people as possible in as many places regardless of their geographical location. IKEA concept is implemented from the start of idea, implemented into the design, manufacture, logistics, sales and final assembly of each product. IKEA was developed by Ingvar Kamprad from southern Sweden, where people are known for surviving and making the most from limited resources. IKEA has aggressively pursued expansion into emerging markets as well as developed economies to make it possible for all consumers to take advantage of its products and enjoy life through its furnishings. It is in constant search of new ideas, designs, functionality, testing and enabling people to assemble its products on their own and to keep shopping at IKEA retail outlets around the world. Stitchting INGKA Foundation became the owner of the new “The IKEA Group” to expand the market and concept of IKEA to as many places as possible. Through aggressive expansion plan IKEA now has nearly 330 stores in 40 countries and as many as 150,000 co-workers. It is on track to open additional through expansion in new and existing markets to have 500 stores by year 2020. IKEA likes to present itself as principled, environmentally conscious, and socially responsible company. Its products that are sourced from others must follow the ‘IKEA WAY’, which is set of regulations for its suppliers around the world. These rules require that manufacturers provide annual report on origin, type of wood used and sourcing of the wood in making the products. In addition, it makes sure labor used in making the products meet the fair trade guidelines set by international regulations. IKEA also follows the UN Convention and guidelines on child labor and if any manufacturer is
Lusine Demirjian
Business Ehics
I-Executive Summary IKEA is the world’s largest retailer of home furnishings. It strives to provide simple, functional, modern, and useful products at affordable prices to as many people as possible in as many places regardless of their geographical location. IKEA concept is implemented from the start of idea, implemented into the design, manufacture, logistics, sales and final assembly of each product. IKEA was developed by Ingvar Kamprad from southern Sweden, where people are known for surviving and making the most from limited resources. IKEA has aggressively pursued expansion into emerging markets as well as developed economies to make it possible for all consumers to take advantage of its products and enjoy life through its furnishings. It is in constant search of new ideas, designs, functionality, testing and enabling people to assemble its products on their own and to keep shopping at IKEA retail outlets around the world. Stitchting INGKA Foundation became the owner of the new “The IKEA Group” to expand the market and concept of IKEA to as many places as possible. Through aggressive expansion plan IKEA now has nearly 330 stores in 40 countries and as many as 150,000 co-workers. It is on track to open additional through expansion in new and existing markets to have 500 stores by year 2020. IKEA likes to present itself as principled, environmentally conscious, and socially responsible company. Its products that are sourced from others must follow the ‘IKEA WAY’, which is set of regulations for its suppliers around the world. These rules require that manufacturers provide annual report on origin, type of wood used and sourcing of the wood in making the products. In addition, it makes sure labor used in making the products meet the fair trade guidelines set by international regulations. IKEA also follows the UN Convention and guidelines on child labor and if any manufacturer is
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