Product details

By continuing to use our site you consent to the use of cookies as described in our privacy policy unless you have disabled them.
You can change your cookie settings at any time but parts of our site will not function correctly without them.

Abstract

Traces the history of IKEA's response to a television (TV) report that its Indian carpet suppliers were using child labor. Describes IKEA's growth, including the importance of a sourcing strategy based on its close relationships with suppliers in developing countries. Details the development of IKEA's strong culture and values that include a commitment 'to create a better everyday life for many people'. Describes how, in response to regulatory and public pressure, IKEA developed a set of environmental policies that grew to encompass a relationship with Greenpeace and World Wildlife Fund (WWF) on forest management and conservation. Then, in 1994, Marianne Barner, a newly appointed IKEA Product Manager, is surprised by a Swedish television documentary on the use of child labor by Indian carpet suppliers, including some that supply IKEA's rugs. She immediately implements a strict policy that provides for contract cancellation if any IKEA supplier uses child labor. Then Barner is confronted by a German TV producer who advises her that he is about to broadcast an investigative program documenting the use of child labor in one of the company's major suppliers. How should she react to the crisis? How should the company deal with the ongoing issue of child labor in the supply chain?

Time period

The events covered by this case took place in 1995.

Geographical setting

Region:
World/global
Countries:
India; Sweden

Featured company

IKEA
Employees:
10000+
Turnover:
USD 1.2 Billion
Industry:
Retail trade; Furniture

Featured protagonist

  • Marianne Barner (female), Product Manager

About

Abstract

Traces the history of IKEA's response to a television (TV) report that its Indian carpet suppliers were using child labor. Describes IKEA's growth, including the importance of a sourcing strategy based on its close relationships with suppliers in developing countries. Details the development of IKEA's strong culture and values that include a commitment 'to create a better everyday life for many people'. Describes how, in response to regulatory and public pressure, IKEA developed a set of environmental policies that grew to encompass a relationship with Greenpeace and World Wildlife Fund (WWF) on forest management and conservation. Then, in 1994, Marianne Barner, a newly appointed IKEA Product Manager, is surprised by a Swedish television documentary on the use of child labor by Indian carpet suppliers, including some that supply IKEA's rugs. She immediately implements a strict policy that provides for contract cancellation if any IKEA supplier uses child labor. Then Barner is confronted by a German TV producer who advises her that he is about to broadcast an investigative program documenting the use of child labor in one of the company's major suppliers. How should she react to the crisis? How should the company deal with the ongoing issue of child labor in the supply chain?

Settings

Time period

The events covered by this case took place in 1995.

Geographical setting

Region:
World/global
Countries:
India; Sweden

Featured company

IKEA
Employees:
10000+
Turnover:
USD 1.2 Billion
Industry:
Retail trade; Furniture

Featured protagonist

  • Marianne Barner (female), Product Manager

Related