Ikea, Ethics Issues and Business Practice's Essay

3986 Words Apr 17th, 2013 16 Pages
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
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The role of Ikea’s Stakeholders in Corporate Social Responsibilities, production and development, sustainability and the environment,
There are a number of issues from Ikeas past that tarnish the company’s glossy image, as shall be detailed below.
Environmental concerns and working relations,
Ikea has a goal of limiting its negative impact on the environment by developing innovative products that are environmentally friendly, from product idea invention for a product to its eventual disposal. In this section Ikea’s commitment to environmentally friendly practices shall be examined.
There are numerous examples of Ikea’s external stakeholders playing a role in changing or developing Ikeas work schemes and manufacturing processes, the Nordic Woodworkers Federation and the International Federation of Building and Wood Workers (IFBWW) pushed for changes to Ikeas code of conduct in 1998, resulting from poor working conditions in supplier’s workshops and factories. There are also numerous examples of Ikea scandals. In 2012 one of Ikea’s former high level employees Johan Stenebo resigned from the company writing a tell all book on the company, titled "Sanningen om Ikea", translating into English as "The Truth About Ikea", Stenebo who worked as Ikea founder Ingvar Kamprad's personal assistant, resigned his posistion after a confrontation with Peter Kamprad, Ingvars son and the

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