Ikea's Global Sourcing Challenge: Indian Rugs Essay

Child labor is a serious problem that affects children from third-world countries all over the world. These children are exploited by multinational corporations ,for their cheap labor all over the world. People, then buy products that come at a cheaper price, from these multinational corporations.These children are often overworked and treated unfairly. People need to stop buying items from countries that endorse child labor.

This paper aims to demonstrate a detailed description of the elements of ‘IKEA’ company based on its famous name in the furniture industry.

“The main cause for children doing work is poverty,” says Nadira Faulmuller in “This Company is Employing Children”. People should buy products made with child labor. Buying these products will support the many families of the working children, since the reason children are working is poverty. Not buying the products can create more problems for the children working. Even though some say that working children are robbed of their education, individuals should buy products made with the use of child labor because hard labor has the ability to motivate children to get an education.

According to “This Company is Employing Children?” it states, ‘“it's for your own good, it prepares you for adult life” argument. Couldn’t we let count in the same argument for work that helps gaining practical skills or is in line with a culture's ethics?’ It is said that when children go to work at young ages, it is supposed to prepare them for adulthood, but their childhood is at jeopardy that way. People should not be buying products manufactured by children because kids are being put to work at such young ages so their childhood wouldn't be worth anything.

To correctly represent the company’s interest during the broadcast, the representative should be briefed about the delicate points to touch on. The representative should state all the actions IKEA has taken to inform themselves, react, and respond to child labor within their supply chain. Back in 1994, IKEA was first aware of child labor in their sub-contracting suppliers through a Swedish television documentary showing children in Pakistan working at weaving looms. Pakistan was a large importer of IKEA carpets at the time. Since this moment of awareness, IKEA had been dealing with this issue

The invitation to appear and be part in a live discussion on the upcoming program is a complex situation, analogous to interviews made for politicians close to elections. Even though, the environment is not the most favorable, every space is essential, and it is an opportunity for IKEA to assume their responsibilities and take ownership of the problem publicly, as they did when the issue of child labor was brought to their attention during the Swedish documentary. Additionally, the company will have the chance to explain to the public opinion all the actions that IKEA has been taking to fight against child labor, including the incorporation of a clause to all supply contracts that stated that “if the supplier employed children under legal working age, the contract will be cancelled” (Chistopher A. Bartlett, 2006). Furthermore, the appointment of an independent third-party to monitor child labor practices at its suppliers in India and Pakistan responsible of conduct random audits. As well as, the validation of the problem from IKEA’s delegation of recent trips to India. Not to mention, the partnership with the Rugmark foundation. And the frequent meetings between the company and the Swedish Save the Children organization, who has emphasized the importance for IKEA to find a solution that is lined up with “the best interest of the

“The main cause of children doing work is poverty- their survival and their families depend on it,” stated Nadria Faulmuller. People should not boycott goods made by child labor. The reason is because it can result in job loss for adults. Also boycotts can have a negative effect on children. Some critics believe that people should not boycott products made by child labor because the critics want the children to have a “proper childhood”, but despite what people say humans should not boycott goods made by kids because as explained by Nadria Faulmuller, “What is seen as a proper childhood can vary in different cultures.”

Ikea is investing 10, 500 crore in India, that send a positive signal to other investors, and had uncertain view of

Local partners could help IKEA to understand better the customer’s behaviors in the host market. The psychic distance would be reduced and consequently IKEA could adapt its products, its stores layout following its local partner advices. Traditionally IKEA used to push Swedish design into the new markets without considering the local needs. If they could find a local joint venture understanding well the local needs they could provide more suitable products.

The case I will analyze and discuss in this case study is “IKEA’s Global Sourcing Challenge: Indian Rugs and Child Labor”. I will begin with the vision, values, and strategy of IKEA and an internal analysis of the issues that they have faced as of the time of the case. Next, I will detail the issues IKEA faced in the years prior to the Indian rugs and child labor challenge. Then I will describe the Indian rug and child labor problem that IKEA faced

public image and to show that IKEA is serious about the issue of child labor in the supply chain I

In my opinion, Marianne Barner’s best option is the second. She should accept the German Video Program invitation, and send a representative that can speak German. This representative should be briefed and given thorough explanations to the situation. The representative should be able to stay calm during the interview, answer polity and clearly to the questions being asked. Obliviously the representative should defend the IKEA brand, but they shouldn’t lie that would result in making the

As pointed out in Ikea's mission statement, the company is in business to produce high quality products at a low cost. This would support a

The IKEA website sets out a principled approach in terms of product safety, in particular in relation to the use of chemicals and other potentially hazardous substances. Particular attention is placed on children’s products which IKEA holds to a “particularly high quality and safety requirements”. Products are tested at various accredited laboratories across the world while children’s products are submitted to testing at an IKEA third-party accredited test laboratory in Almhult, Sweden.

4. What is IKEA’s strategy toward suppliers? How important is this strategy to IKEA’s success?