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

The case discusses the environmental and sustainable business practices of the Sweden-based furniture retail giant IKEA Systems BV (IKEA). It examines in detail IKEA's journey in becoming an environmentally responsible company and highlights the initiatives the company took to ensure that its operations did not have adverse effects on the environment. IKEA was primarily involved in furniture retailing; initially most of its furniture was made of wood, which required the felling of trees. To process the wood, many chemicals were used, which were harmful to the environment and to the consumers. IKEA realised that better environmental practices within the company and among its suppliers would have long-term benefits, not only economically but also in presenting a positive corporate image of it to customers. Besides which, they would help the company in playing its part in preserving the depleting natural resources. The case examines in detail IKEA's forestry practices and the IKEA Way or iWAY, which specifies the working conditions, and the labour, environment, and forestry management practices that IKEA expected its suppliers to follow. It also discusses the staircase models IKEA followed for the suppliers and with regard to forestry practices. Other environment friendly practices of IKEA discussed in the case include: (1) transportation; (2) the environmental responsibilities of the employees; (3) some of the unique eco-friendly products made by the company using recycled materials; and (4) other practices regarding conservation of energy and waste management practiced at IKEA's stores.

Teaching and learning

This item is suitable for postgraduate courses.
Location:
Size:
Very large
Other setting(s):
1992-2006

About

Abstract

The case discusses the environmental and sustainable business practices of the Sweden-based furniture retail giant IKEA Systems BV (IKEA). It examines in detail IKEA's journey in becoming an environmentally responsible company and highlights the initiatives the company took to ensure that its operations did not have adverse effects on the environment. IKEA was primarily involved in furniture retailing; initially most of its furniture was made of wood, which required the felling of trees. To process the wood, many chemicals were used, which were harmful to the environment and to the consumers. IKEA realised that better environmental practices within the company and among its suppliers would have long-term benefits, not only economically but also in presenting a positive corporate image of it to customers. Besides which, they would help the company in playing its part in preserving the depleting natural resources. The case examines in detail IKEA's forestry practices and the IKEA Way or iWAY, which specifies the working conditions, and the labour, environment, and forestry management practices that IKEA expected its suppliers to follow. It also discusses the staircase models IKEA followed for the suppliers and with regard to forestry practices. Other environment friendly practices of IKEA discussed in the case include: (1) transportation; (2) the environmental responsibilities of the employees; (3) some of the unique eco-friendly products made by the company using recycled materials; and (4) other practices regarding conservation of energy and waste management practiced at IKEA's stores.

Teaching and learning

This item is suitable for postgraduate courses.

Settings

Location:
Size:
Very large
Other setting(s):
1992-2006

Related