Professional Documents
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Integration and Communication of CSR Principles by IKEA
Integration and Communication of CSR Principles by IKEA
Maon François
Swaen Valérie
B. Conceptual Background
C. Methodology
D. Main findings
E. Managerial Lessons
Context
How?
Stakeholders
« interface and relay between society expectations and the corporation » (Whetten, Rands & Godfrey, 2002)
Companies develop appropriate strategies to meet, manage and/or change stakeholders’ expectations
Conceptual Background (2/3)
Stakeholders’ reactions to CSR activities
BUT
• CSR initiatives can under certain conditions decrease consumers’ buying intentions (Sen & Bhattacharya, 2001).
• Asymmetrical influence of ethical information on attitudes (e.g., Carrigan & Attalla, 2001)
• Survey carried out on on a sample of 150 IKEA customers in Belgium (quota sampling)
Main Findings
• 98-99 Pressures from environmental groups related to wood procurement issues in Russia and Indonesia
• 1999- … Criticisms on the code of conduct implementation in suppliers’ factories (wages levels, freedom of association, work hours…)
1. IKEA’s CSR Commitments
Reactive behaviours
• Different programs of actions aiming at dodging risks, latent detractors’ criticisms and their potential harmful impacts
Importance of external stakeholders in the development and enforcement of socially responsible buying practices agreements and codes of conduct
• Anticipate environmental demands as a part of its corporate culture and management philosophy
Officially, IKEA does not simply consider CSR policies as reactions to criticisms and scandals
IKEA tries to keep a low profile and prefers to progress cautiously by privileging actions instead of communication in CSR matters
Lets potentially interested parties “find” CSR information about IKEA by themselves
3. Stakeholders’ Reactions
About customers
• Feeling of not being informed on IKEA’s CSR policies
• Don’t significantly ask for more CSR information
• Slightly positive perception about IKEA’s CSR commitments (mean = 4,3 on a scale from 1 to 7)
• No significant influence on their buying intentions
Relatively ethical “chastity” of IKEA doesn’t constitute a determinant factor in IKEA’s consumer behaviour
40,6 % of customers affirm they would boycott IKEA if they learn about important negligence related to CSR matters they attach importance to
3. Stakeholders’ Reactions
• HOWEVER: Interesting differences have been highlighted according to the type of stakeholders considered
3. Stakeholders’ Reactions
About partner organizations, trade unions and public administrations which have regular and /or formalized contacts with IKEA
• better perception of IKEA’s CSR commitments and policies
About organizations that have only accessed to independent and external sources of information on IKEA’s CSR policies
• often sceptical and critical attitude, sometimes aggressive
Transparency - demanded by a large majority of stakeholders – plays a positive role in the development of positive attitudes towards the firm
4. IKEA Case through the CSR
implementation integrative framework
Step 1: Discovering organizational value and norms
• IKEA’s Origin, values and culture, as well as IKEA’s business vision – “to create a better everyday life for the many people”:
• Customers, employees and suppliers historically considered as key stakeholders in IKEA’s environment
Step 1, 2 and 3 allows IKEA to efficiently assess a CSR meaning that takes into account key stakeholders’ expectations
4. IKEA Case through the CSR
implementation integrative framework
• No structured dialogue
• Lack of transparency and clarity
• Credibility perceived as high but ‘voluntary blurred’ discourse
• CSR communication = too shy
Stakeholders’ skepticism
4. IKEA Case through the CSR
implementation integrative framework
STEP 1 :
Discovering STEP 7 :
organizational Promoting
norms and CSR
values
2. Be aware of the role of external stakeholders in the success of CSR integration process: tackle the raised issues early enough and engage in multi-stakeholder dialogue
3. Communicate with the right tools to the appropriate stakeholders: expectations and perceptions vary from a stakeholders’ group to another
Managerial Lessons
4. Give transparency the importance it deserves: it strongly participates to the building of stakeholders’ attitudes towards the company
5. Adopt a humble attitude: involve stakeholders in the monitoring process and communicate clearly on your intermediary achievements