Essay on Ikea, Ethics Issues and Business Practice's

3985 Words Apr 22nd, 2013 16 Pages
IKEA and Current ethical issues

Introduction
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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‘’We have set out to grow and develop IKEA in harmony with people and the planet.’’
Mikael Ohlsson, (President and Chief Executive Officer of the IKEA Group).

http://www.ikea.com/ms/en_CN/about_ikea/press/press_releases/annual_report.html
This section of the report will examine the work of Ikea in several key areas, corporate social responsibility, sustainability, the environment, employment and the work they do in the communities in which they are based.
Ikea's goal historically has been cost effectiveness with the production of affordable furniture, today this goal remains however with the added tagline, to "create a better everyday life for the many people’’ and ‘’We have set out to grow and develop IKEA in harmony with people and the planet.’’ (Ikea UK website, 2012).

http://www.ikea.com/ms/en_GB/about_ikea/the_ikea_way/our_business_idea/index.html

Ikea and CSR,

Corporate social responsibility (CSR)
CSR is a company’s sense of responsibility and involvement towards the community and environment in which it operates, with Ikea this can be in the area in which it sources material, has its factories or sells its goods.

IKEA's mission statement highlights its goal to consider and integrate social and environmental considerations into its daily operations and promote the goal of sustainable production.

These self-established corporate social responsibility policies, are primarily the result of Ikeas Nordic
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