HISTOR

•
Y
Founded in 1943 by Ingvar Kamprad as a mail-order company
• In 1948, began selling furniture made by local manufacturers
• IKEA's iconic catalog was introduced in 1951
• IKEA's key feature: Self-assembly furniture started in 1956
• First IKEA store opened in Sweden in 1958
• More than 300 stores worldwide
 Q Own investigation to be conducted by IKEA on
Rangan exports.
1
What actions should
Marianne Barner take
Invitation to take part in the live discussion
should be declined.
regarding the IKEA supply Official statement to be released on Rangan
Exports after investigation
contract with Rangan
If proven, the contract must be immediately
Exports? terminated.
If not guilty, IKEA should make efforts of
verification on the supplier side to ensure
such concerns do not arise.
 Q2 Though Indian rugs were a small part of IKEA’s turnover,
We recommend that IKEA stay in India.
What long -term strategy Enhancing the brand image of IKEA by tackling the
would you suggest Barner issue.
take regarding IKEA's
STRATEGY TO BE IMPLEMENTED:
continued operation in
India? Should the company
Focus on building long-term relationships with
stay or should it exit?
suppliers.
Third-party auditing of the suppliers frequently
Work with Rugmark Foundation
Q3
How appropriate were Confirm supplier violation before
the actions taken by termination
IKEA management in Eliminating contract does not
response to the crisis of solve child labor problem
Terminating contract does not
1995 as described
solve child labor problem
above?
Can lead to worse conditions for
children
Q4
Since child labor claim not confirmed,
What should Marianne
terminating contract not advised.
Barner recommend to Terminating contract not a good solution,
Kaisa Mattson in workers could lose jobs.
dealing with Venkat Stricter requirements, heavy fines for child
Industries’ recent audit labor violation
Regular auditor to monitor compliance with
result?
IWAY policies
Provide financial help to Venkat to expand
their operations
 What long-term changes in IKEA's philosophy, policies and practices
Q5
should Barner (Business Area Manager) recommend to Anders Dahlvig
(CEO)?
PREVENTION CONTROL
Deeply e m b e d d e d p ro b l e m interlinked
with IKEA Job 9
Poverty Auditing & C o m p l i a n c e
P oor H ealth Process R a n d o m Checks by
Indebtness Auditors Given a score based
Illiteracy o n audit
Gender & Caste
Discrimination Poorly run IKEA IWAY
schools N o forced & b o n d e d
Social Norms labor N o child labor
N o w o o d from Intact Natural
IKEA + UNICEF
Forests Wo o d Origin Tracing
C o m m u n i t y Development
Project ALC - Bridge Schools
 Q5
What long-term changes in
IKEA's philosophy, policies and
practices should Barner
(Business Area Manager)
recommend to Anders Dahlvig
(CEO)?
Implement social programs similar to
UNICEF
Subsidies to supplier industries
Working with Rugmark to implement stringent
measures.
Associating with local authorities and media.
Producing documentaries that show the Socially
responsible side of IKEA.
 GROUP 8
Akash Jain- 2210003
Arzoo Goyal- 2210015
Shubham Solanki-
2210055 Supriya
Mantena-2210063 Yogesh
Yadav- 2210072