SCM 463- IKEA’s Global Sourcing Challenge: Indian Rugs and Child Labor (A)
A) How should Marianne Barner respond to the invitation for IKEA to have a representative appear on the upcoming broadcast of the German video program? If Marianne Barner completely denied the request of attending the discussion, IKEA will presumably be viewed to be guilty and also aware of the child labor practices within Rangan Exports. Marianne Barner should respond by agreeing to send a representative for the discussion. This would provide the opportunity for IKEA to have their representative to clear up any questions and explain any problems in a manner that is in the best interest for the company. The representative could discuss how IKEA has previously taken action during the company’s rapid expansion by getting involved with several different NGO’s like Greenpeace and WWF to continually address broader environmental concerns more directly. Also the representative can discuss how IKEA reached out to the International Labor Organization to establish their “black-and-white” clause to assure that they would only engage in business with suppliers who strictly abide by the labor laws of not employing children under the legal age. In addition to agreeing to take part in the discussion, Marianne Barner should also personally organize a press conference and provide a speech or a clear message targeting their customers, suppliers, competitors, along with the general public. This statement should remind the viewer’s about the actions taken regarding the Swedish television documentary issue. IKEA presented a strong determination to solve this problem that rooted from their supplier’s subsuppliers and hired a well-known third-party agent to monitor these subsuppliers to assist IKEA with quality assurance programs, external monitoring, and random audits at the factories. Marianne Barner’s statement to the public should promote their broad responsibility of not only terminating business...
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