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Ikea Sustainability

In: Social Issues

Submitted By gangchenx
Words 598
Pages 3
1. Marianne Barner should accept the invitation and ask for a chance to present
IKEA’s view of child labor on the broadcast. Facing the crisis directly rather than escaping the problem is a smart way to solve the crisis. She should use this broadcast to transfer anti child labor message to the public for IKEA and defeat the accusing from the German media face to face. Especially after inspecting India,
Nepal and Pakistan, Barner grabbed first hand information to reveal how deep this socioeconomic problem embeds in these countries. She also should announce all the efforts IKEA makes on this issue, such as an anti child labor clause in the supply contract, a third party monitor system to child labor practices at the suppliers in
India and Pakistan, and an action of joining the Regmark to deal with the child labor problem on products from India.
2. Barner should stop the business with Rangan Exports according to the anti child labor clause in the contract. This action will be a strong symbol to clarify IKEA’s stand on the child labor issue. It will help IKEA win trusts from the public. Learning from the incidence happened in 1980s, which caused IKEA lost 20% business in
Denmark, IKEA should realize how important a positive publicity is to IKEA’s business. A positive social image is the foundation of companies dealing with B2C business. On the other hand, stopping contract with Rangan Exports is also a serious example to educate the other suppliers in India or other countries to focus on the issue of child labor and anti child labor clause in the contract.
3. I don’t think IKEA should exit India market because India is the biggest rug purchasing market for furniture retailors. Exiting India and looking for a replacement with higher purchasing price will increase IKEA’s cost, which does not match IKEA’s management culture “cost of conscious”. For the long-term, Barner should:1) Emphasis on the monitoring to the child labor activities at the suppliers’ factories. IKEA can work with local NGOs to inspect the local factories. 2)Detail the clause of anti child labor in the contract. Especially, the term of “employ the children under legal working age” (Bartlett, IKEA's Global Sourcing Challenge: Indian Rugs and Child Labor (A), 2006) should be clarified more clearly in definition of “children” and “ legal working age” . Otherwise, its meaning will be easily misinterpreted by the local suppliers, because local law in India permits children work in craft industry.
3)Strengthen the cooperation with Swedish Save the Children organization and the
Indo-German Export Promotion Council. IKEA can use their local network in India to help experts in SSC organization to find out how to help child labor in India. They can also make good use of the Rugmark label certification and require Rugmark
Foundation to help them well supervise the producing of products.
4. Foxconn, the manufactory of IPHONE, is famous as one of Apple’s biggest suppliers. But in the year 2013, thirteen workers committed suicide in only four days
(from 24th to 27th April 2013) in Foxconn’s different factories in China. This incidence deeply revealed a terrible life of the workers in the Foxconn. The workers were treated as slavers without any freedom and human rights. They were forced to work constantly for more than 12 hours everyday in the factory. This scandal happened in
China, but its negative effect impacts Apple’s reputation in the world. Consumers accused the Apple’s of oppressing the labors for blood money. Some of them even chose resisting Apple products to express their wrath.

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