Ikea child labor case study analysis

Solution 3 is the obvious choice as IKEA will be responding to the situation at hand and creating a best practices response that will ultimately help the contractor and any employees currently being exploited. Our immediate response to the program was to apologize for our ignorance and acknowledge that we were not in full control of this problem.

The company could advance itself to the even higher level, an interactive level, by executing more assertive and precise plans.

Ikea child labor case study analysis

Therefore, a plan that IKEA should have instated a program that checked thoroughly of where their product was coming from, beginning to end. Alternative Solution 3 Suspend contracts with Rangan on a provisional basis, allowing the contractor to fill current orders pending review of systematic changes in child labor practices and create a proactive programs approach for children employed by Rangan, including screening for employment of both employees and subcontractors, internal and external audit of manufacture facilities and increased regulations for hours of work and opportunities for employees. Leaving India all together it would further deprive those parents and children income needed to get out of debt and poverty. In the U. Beyond reshaping a philanthropic and socially responsible corporate image, IKEA can also benefit from long-term relationships with suppliers and other stakeholders, building a lasting, sustainable, and prosperous business empire into the future. Barner and IKEA are to help end social injustices and not turn a blind eye. In fact, the size of carpets sales is relatively trivial that the company should withdraw their business from India if the problem is getting even worse. They want long term business partners and that are able to be competitive in the long run. Not to mention if you get the public involved in trying to help by donating, it could help IKEA with ending child labor. Therefore, sustaining brand value is more crucial than any other financial perspective in this issue.

Barner should not accept the invitation to the upcoming broadcast of the German video documentary on child labor because IKEA hired a third party monitoring service that was detailed to watch out for this sort of thing following the Pakistan incident. In the spring ofanother film is threaten to be shown on German television about children working at looms at Rangan Exports, an Indian company used by IKEA, and the producer then invited IKEA to send someone to take part in a live discussion during the program.

Ikeas grown up plan to tackle child labour

IKEA learned a lesson; publicity can bring a big loss in sales, not considering the damage to the brand image. No one will fly first class, no matter what the circumstances. Rangan Exports as well as other unexposed but likely just as ethically questionable sources has a fiscal responsibility to uphold its commitment to the signing of the IKEA child labor clause in its contract. But there were a few issues within the company of IKEA that needed to be solved, included a huge environmental issue involving the use of formaldehyde glue. IKEA should accept the invited from the council and participate heavily in this program until IKEA can create an additional monitoring program of its own. Solution 3 is the obvious choice as IKEA will be responding to the situation at hand and creating a best practices response that will ultimately help the contractor and any employees currently being exploited. As time progressed, Barner became more interested in the child labor within these countries and continued to research.

Words:Paragraphs: 14, Pages: 5 Publication date: September 09, Sorry, but copying text is forbidden on this website! From the CSRs perspective, the company could consider three alternatives to improve and sustain its brand image. The fact that IKEA itself owns no manufacture or production facilities but instead relies exclusively on contractors they have only limited control of how such facilities generate product, with the exclusion of the contracted quantities ordered.

ikeas global sourcing challenge: indian rugs and child labor (a), spreadsheet

Retrieved February 21, originally published on November 20, The company was founded in by Ingvar Kamprad and kept growing tremendously from 2 stores in to stores in Most of this work is already done if the alternative solutions clearly point out advantages and disadvantages to each.

Besides its success stories, the company has faced environmental and social issues. Everyone works together in the open.

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Ikea’s Global Sourcing Challenge: Indian Rugs and Child Labor