Bartlett et al. (2006) describes IKEA’s growth and its strong culture as well as values development. These culture and values consists of the company’s dedication to create a better daily life for many people. Bartlett and his colleagues also describe how IKEA developed some environmental policies—in reaction to a regulatory as well as public pressure–that expanded to include two stakeholders. One of the stakeholders is Greenpeace. The other one is WWF (World Wide Fund for Nature). In 1994, Marianne Barner—IKEA’s product manager– is surprised by a Swedish TV documentary about use of child labor in Indian carpet suppliers. This includes suppliers who supply IKEA’s rugs. As a result, Barner implements a strict policy providing for contract cancellation in case any IKEA supplier employs child labor. Subsequently, a German television producer confronts Barner. He advices Barner he is almost about to air an investigative program that documents child labor use in one major IKEA’s supplier. On her visits to suppliers, Barner learned of the formation of Rugmark foundation. It was formed in response to the use of child labor in the Indian carpet industry. Maintaining a monitoring as well as control process is important for IKEA. Despite this, the signing up to Rugmark would results to more sales, as this organization certifies if a carpet was manufactured with/without child labor use. This initiative creates transparency for both IKEA and its customers. Barner indicated that the Swedish Save the Children’s specialists taught her company a lot regarding the child labor issue. This specialist stressed that IKEA has to do what is in the most excellent interests of children. Clearly, therefore, IKEA has to get to the roots of the child labor problem it is experiencing. 

References

Bartlett, C.A. et al. (2006). IKEA’s Global Sourcing Challenge: Indian Rugs and 

Child Labor(A). Harvard Business School, 906(414), 1-13.