Ikea’s Global Sourcing Challenge: Indian Rugs and Child Labor
IKEA’s Global Sourcing Challenge: Indian Rugs and Child Labor
Ethics in Business and Society
Professor Stephen Griffith
Otis West
Tuesday, November 6, 2012
IKEA is the world’s largest furniture store that offers well-designed, functional home furnishing products at low prices. The store offers home furnishings to meet the needs of everyone. The company vision is to create a better everyday life for the many people. Ikea is able to back their vision with their products and prices. In additional to Ikea offering great products, the company also believes in taking responsibility for people and the environment as a pre prerequisite for doing good business. IKEA works actively to reduce its impact on climate change and IKEA products must be produced under acceptable working conditions by suppliers that take responsibility for the environment (Ikea.com, 2012). In the case, “Ikea’s Global Sourcing Challenge: Indian Rugs and Child Labor,” it goes against the company and their responsibility for people and the environment. At IKEA they recognize that their business has an impact on social and environmental issues. The issues are primarily focused on people’s working conditions and environment worldwide. Unlike most businesses today who believe in just increasing revenue, Ikea believes that they can do good business while being successful and practicing good business ethics. Ikea believes in working with suppliers and other companies who share their same vision while seeking growth opportunities. In the case, “Ikea’s Global Sourcing Challenge: Indian Rugs and Child Labor,” the stakeholders identified are Marianne Barner a business area manager for carpets with Ikea, child workers who may have been used to produce Indian rugs by suppliers, other suppliers, shareholders and employees of Ikea. Marianne Barner is a stakeholder who was faced with a tough decision on how to address the issue of child labor in the production of rugs made for Ikea by suppliers. The company
Ethics in Business and Society
Professor Stephen Griffith
Otis West
Tuesday, November 6, 2012
IKEA is the world’s largest furniture store that offers well-designed, functional home furnishing products at low prices. The store offers home furnishings to meet the needs of everyone. The company vision is to create a better everyday life for the many people. Ikea is able to back their vision with their products and prices. In additional to Ikea offering great products, the company also believes in taking responsibility for people and the environment as a pre prerequisite for doing good business. IKEA works actively to reduce its impact on climate change and IKEA products must be produced under acceptable working conditions by suppliers that take responsibility for the environment (Ikea.com, 2012). In the case, “Ikea’s Global Sourcing Challenge: Indian Rugs and Child Labor,” it goes against the company and their responsibility for people and the environment. At IKEA they recognize that their business has an impact on social and environmental issues. The issues are primarily focused on people’s working conditions and environment worldwide. Unlike most businesses today who believe in just increasing revenue, Ikea believes that they can do good business while being successful and practicing good business ethics. Ikea believes in working with suppliers and other companies who share their same vision while seeking growth opportunities. In the case, “Ikea’s Global Sourcing Challenge: Indian Rugs and Child Labor,” the stakeholders identified are Marianne Barner a business area manager for carpets with Ikea, child workers who may have been used to produce Indian rugs by suppliers, other suppliers, shareholders and employees of Ikea. Marianne Barner is a stakeholder who was faced with a tough decision on how to address the issue of child labor in the production of rugs made for Ikea by suppliers. The company
References: Bartlett, V., Dessain, V., & Sjoman, A. (2006). IKEA’s Global Sourcing Challenge: Indian Rugs and Child Labor. Boston, MA: Harvard Business Publishing. IKEA. Retrieved Tuesday, November 6, 2012 from http://www.ikea.com/ms/en_US/about_ikea/our_responsibility/index.html International Labor Organizations. Retrieved Tuesday, November 6, 2012 from http://www.ilo.org/global/lang--en/index.htm United States Department of Labor. Retrieved Tuesday, November 6, 2012 from http://www.dol.gov/