Ikea Case and Csr
Talking a quick brief on the case , basically this case shows the continuous crisis where IKEA faces through its growth around the world.
IKEA as a major furniture manufacture faces some challenges along the way of growth worldwide. As the Brand start to evolutes , and its values start to be understood and being put to test, NGOs , journalists, movie makers and governmental start putting those value in the uncomfortable zone. Asking IKEA if these are slogans or if they real work believing those values. First in 1980s , IKEA face a legislation in Sweden about the decrease of the Formaldehyde emission used in the Furniture. IKEA faced this issue and went deep beyond its suppliers and worked with Chemical companies to develop Glues which are in line and meet the standards and stopped all suppliers which couldn’t meet this standard. In 1992, a new legislation came to Germany about a specific product of IKEA “ Billy”. Which used Lacquer for those bookshelves and this article in the magazine / Newspaper accusing IKEA of selling poisoning bookshelves which affected its sales by 6-7 MM$.
IKEA had to stop reacting to such incident , and had to take a step evaluating its responsibility toward the consumer and the environment. They audit all the raw material used in the manufacturer process such as plywood, glues, paints….of course wood and tried to track its sources. It even went down to changing its packing material previously used PVC to change the material used for the its most famous chair (OGLA).
IKEA also started to connect with private and governmental organization and understanding how to comply and even help enforces its laws such as UN / UNCEIF /ILO…
The CSR issue IKEA faces is that it has been accused of using suppliers which are abusing children as labor in India. This was a very big challenge for IKEA as this is not the first time it faces this issue. In 1994 there was a recent law by U.N which forbid the use of children in manufacture. IKEA facing this
IKEA as a major furniture manufacture faces some challenges along the way of growth worldwide. As the Brand start to evolutes , and its values start to be understood and being put to test, NGOs , journalists, movie makers and governmental start putting those value in the uncomfortable zone. Asking IKEA if these are slogans or if they real work believing those values. First in 1980s , IKEA face a legislation in Sweden about the decrease of the Formaldehyde emission used in the Furniture. IKEA faced this issue and went deep beyond its suppliers and worked with Chemical companies to develop Glues which are in line and meet the standards and stopped all suppliers which couldn’t meet this standard. In 1992, a new legislation came to Germany about a specific product of IKEA “ Billy”. Which used Lacquer for those bookshelves and this article in the magazine / Newspaper accusing IKEA of selling poisoning bookshelves which affected its sales by 6-7 MM$.
IKEA had to stop reacting to such incident , and had to take a step evaluating its responsibility toward the consumer and the environment. They audit all the raw material used in the manufacturer process such as plywood, glues, paints….of course wood and tried to track its sources. It even went down to changing its packing material previously used PVC to change the material used for the its most famous chair (OGLA).
IKEA also started to connect with private and governmental organization and understanding how to comply and even help enforces its laws such as UN / UNCEIF /ILO…
The CSR issue IKEA faces is that it has been accused of using suppliers which are abusing children as labor in India. This was a very big challenge for IKEA as this is not the first time it faces this issue. In 1994 there was a recent law by U.N which forbid the use of children in manufacture. IKEA facing this