Ikea, Ethics Issues and Business Practice's

Topics: IKEA, Ingvar Kamprad, Business ethics Pages: 11 (3998 words) Published: April 29, 2013
IKEA and Current ethical issues

This report, shall attempt to create an understanding of the current ethical issues affecting Ikea. These issues will include the role corporate social responsibility plays in Ikeas decision making process, how it deals with cultural imperialism, the influences and attitudes of customers, suppliers and staff, be that in those countries where it manufactures its products or sources its materials. While Ikea is seen as the essential Swedish brand, it is a massive global company and is affected by the issues like globalisation. In later stages of the report we will see what schemes Ikea supports to counter act the negative connotations associated with their activities, for example their role in ecology, environmentalism, fair trade and financial and social contributions. Other areas dealt with in this report will examine Ikeas corporate culture in the areas of personal attitudes, whistle blowing and its ethics in sales and marketing. In the modern worlds socially conscious business environment it is unwise for any large business organizations to limit its concerns to increasing profits. With the rise of the socially active and political aware consumer, companies in addition to their economic and legal obligations must also consider their ethical and discretionary responsibilities to society. The modern consumer while perhaps not directly affiliated to a cause, increasingly adhere to certain ethical values, with this in mind they will be influenced by the organisation in questions ethical practices. Be that in its products, and services, including employee, social, and environmental issues. Consumption of this brands products, expresses not only product preference, but also how the consumers feel that they can relate to the values or cause of the company. Again we can not only look at the production of the finished product, but from the sourcing of materials. There is a great level of pressure exerted as to ethical and fair sourcing of materials and the production of components. The developed world and its consumers have cultural expectations for the practices of suppliers across the world, wherever they may be based. This desire to see environmentally correct and ethically sound business practices is culturally ingrained. Within this context, the use of child labour, fair trade, sustainable development and farming alongside social diversity and the protection of workers have emerged as crucial issues. Adopting a socially responsible outlook in any business model must come from the top down in any organisation, in Ikea we will look at the role of its corporate government in the decision making process. In this study a number of areas will be covered, does Ikeas board of directors have a system in place that enables accountability, fairness and transparency in the company’s relationship with its stakeholders.

Research Methodology
In order to conduct this study a range of data was collected using various methods. Secondary resources in the form of written documentation were adapted, primarily these documents were promotional materials, reports issued by Ikea or information gathered from the Ikea website. Information was selected based on it being content specific to the requirements of this report and focused on the key issues to be covered. These included documentation on sustainability, the environment, employment and the work they do in the communities in which they are based. The Ikea Belfast store was visited, with the opportunity to speak with the organisations local sustainability officer. Individual research was undertook to look beyond those reports and articles offered by Ikea in a bid to gain an unbiased view of the companies activities and any differing reports. Findings

Ikea, picture perfect?
Ikea prides itself on being a world leading in ethical business practices, With the vision and mission statement to suit,
‘’Our vision is to create a better...
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