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Ikea Child Labor

By | May 2012
Page 1 of 3
IKEA’S GLOBAL SOURCING CHALLENGE: INDIAN RUGS AND CHILD LABOR IKEA should participate to the program, in order to clarify its position and to ensure its customers that it is making all of its best in order to verify the truth of accusations and to prevent the child labor in the future. Even if IKEA has a strong social responsibility that demonstrated in several events (1980 and 1992 environmental events and 1994 Pakistan child labor social problem), German program is threatening its image, and public opinion has often a short term memory: participating to the program, IKEA could defend its reputation and respond directly to attacks on TV. One way to do that could be that of specifying imminent corrective actions and how it will deal with the supplier involved in child labor scandal, and also measures it is taking and going to take for social problems not only in India, but in all the other less developed countries where it works (Pakistan, Nepal, etc.); not only for rug production but also for the other products, in order to avoid that this kind of scandals will come out again. For example, it should bind child labor from all of its relationships with suppliers in all the countries where it operates, otherwise it will break the contracts with them; and it should express its position about many common social problems in less developed countries (child labor, poverty, health diseases and so on) and its engagement (what it is really doing for them) in its Code of Conduct. Customers and public opinion need to be informed and cannot be ignored; communication is a crucial point for a well known brand like IKEA. IKEA should deal with Rangan Export in a fair way: it should verify the truth of the accusations against it; if an irresponsible behavior of supplier came out, it should invite it to take corrective measures and intimate it that, if it reiterates in this conduct, the contract will be closed. This way of acting would be in line with the aim of building long term...

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