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ikea's global sourcing challenge: child labor
Transcript of ikea's global sourcing challenge: child labor
K (Kamprad) -- his last name
E (Elmtaryd) -- farm he grew up
A (Agunnaryd) -- his home village Founder of IKEA Today It is the biggest furniture company in the world It is a swedish company 550 millions people visit 300 stores all over the world about 12% steady growth every year IKEA' s feature Low price & Good design Make most of people can afford IKEA' s Feature Self-assembled Need a little DIY ability IKEA' s Strategy Cost-saved From a paper TO airline tickets Shopping place IKEA' s Strategy Make customer exposed to
product range maximum IKEA' s Social Responsibility Refuse to use materials harmed to people
Refuse to use forests with high conservation value
Refuse to use child-labor Save money in daily management IKEA' s Strategy Combined with suppliers Help suppliers with technologies Make loans to suppliers at reasonable rates Repayable through future shipments Develop long-term business partners Appoint forest manager to monitor compliance
Appoint third-party agent to monitor child labor
phenomenon in suppliers in India and Pakistan IKEA' s Social Responsibility Environment consciousness More than 60 stores has used solar
energy on rooftop child-labor issue Team member
Erin, Chris & Sam convenient-designed & cheap Child labor issue crisis A German TV station had just broadcast an investigation in report that one of IKEA's suppliers used child labor in the production of rugs in India Short-term decision Cut off the supplier used child labor Rangan Exports This event make IKEA to be the focus of attention Long-term decision 1. Use "rugmark" on carpets 2. Converse with Swedish Save the Children organization, ensure this kind of event will not happen again 3. decide leave India or not? IKEA' s vision is To create a better everyday life for the many people Even worse A documentary maker has made a film about "IKEA' s Child Labor" and invite IKEA to send representative to take part in the live discussion on TV Help good management develop their capacity Our recommendation a. Positive response, do not evade, do not cover
b. Quickly, fully, and carefully investigate Rangan
Exports and other suppliers. Avoiding get worse
c. Work with NGOs to use the rugmark label.
This implement is just for telling public "we have
taken serious actions for this!"
d. Participate the TV show and tell public the truth. short-term Our recommendation long-term a. Establish a system and rules to audit and monitor the phenomenon of using child labor
b. Cooperate with third-party organization to
monitor the implement.
c. Devote itself to help children, build school,
donate goods and materials to retrieve
d. Do not quit India market. Thank you for your attention! THE END Many multinational corporations used child labor in globalization Microsoft Wal-mart Nike what is child labor ? Child labour refers to the employment of children in any work that deprives children of their childhood, interferes with their ability to attend regular school, and that is mentally, physically, socially or morally dangerous and harmful. Sansumg Apple ...... NOT JUST IKEA IKEA must decide what should IKEA do ?