Ikea case study on child labor

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Ikea case study on child labor

Ina well-known German TV reporter broadcasted an ongoing investigation report naming a main supplier of Ikea used child labor in their work place.

Although this supplier claimed to recently sign an agreement in their IKEA contract forbidding the use of child labor or else termination, recent video and still-photographs have proved otherwise.

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In a whirl-wind of events, Barner was forced to look into alternatives to help save the reputation and image of IKEA as well as maintaining a profit. Three of these alternatives that Barner juggled that were stated within the case included: Sign up to an industry wide response to growing concerns of child labor in India — monitoring manufacturers, importers, and retailers to use the new label of RUGMARK: Before investigating these possibilities further, a deeper look into the company IKEA is necessary.

At seventeen years old, Ingard Kamprad started a mail order business out of his parents home in Sweden. Ingard started small, selling fountain pens, cigarette lighters, and binders.

But inhe urged to increase the products of his business and added furniture to his newsletters.

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This allowed his consumers to inspect their products before buying. After the success of this show room, he stopped accepting mail orders as a whole. Instead, he started offering a large range of home furnishing. From then on, sales only increased. Swedish furniture stores started pressuring Swedish manufacturers to stop selling to Ikea.

He decided the best location for this concept was a downtown, suburban area with large parking lots waiting to be filled with an over abundance of cars. And IKEA offices have no separate cubicles or offices, for anyone. Everyone works together in the open.

IKEA also became extremely cost consciousness as time progressed.

Ikea case study on child labor

No one will fly first class, no matter what the circumstances. He believed in his code of values so strongly that he created a document that all managers must teach called: Kamprad remains an honorary chairman and is still very much involved with Ikea today.

They had ninety-eight stores within seventeen countries, worked with 2, suppliers in seventy countries whom supplied 11, products, and had twenty-four trading offices in nineteen countries that monitored production, tested product ideas, negotiated products, and checked quality.

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. This product had proved to have harmful affects to the consumer including: When these issues became apparent to IKEA, they started to look further into what they can do to prevent other problems.

Adapting to the Product Range 2. Working with Suppliers 3. Monitoring Transport and Distribution 4. Ensuring Environmental Conscious Stores But as soon as they were finished with one social problem, another came to head.

Ina Swedish television documentary showed children in Pakistan working at weaving looms. IKEA was the only high profile company name on the list for that supplier of rugs.

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Our immediate response to the program was to apologize for our ignorance and acknowledge that we were not in full control of this problem. This clause stated that if suppliers employed children under legal working age, that their contract would be canceled.

As time progressed, Barner became more interested in the child labor within these countries and continued to research. She learned that a total ofchildren were employed in the carpet industry in India, working in the looms in the larger factories.

Children could in fact be bonded in order to pay off debts from their parents. As Barner continued her research, another blow to Ikea occurred. Marianne Barner had to think fast of how to regain the reputation IKEA once had while making a change to these awful child labor conditions.Hearst Television participates in various affiliate marketing programs, which means we may get paid commissions on purchases made through our links to retailer sites.

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This paper outlined the issues raised by child labour in the supply chain, placing it in the context of international conventions related to child labour. IKEA (/ aɪ ˈ k iː ə /, Swedish:) is a Swedish-founded multinational group that designs and sells ready-to-assemble furniture, kitchen appliances and home caninariojana.com has been the world's largest furniture retailer since at least It was founded in Sweden in by thenyear-old Ingvar Kamprad, who was listed by Forbes in as one of the .

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