Ikea Case Study Child Labor

"IKEA's Global Sourcing Challenge: Indian Rugs and Child Labor (A)." Harvard Business School Case 906-414, May 2006.

Because Rugmark was founded on the basis of consumer awareness of the issue I believe some membership to Rugmark would improve the overall public image of IKEA in this arena.Kamprad had a very strong idea of how he wanted the company to operate and be managed. He was eager to share his ideas on management with his staff and thus authored the document, “A Furniture Dealer’s Testament” in 1976. I would recommend that Marianne Barner thank the German Video Production company for the4) For those recommending that IKEA continue to source carpets in India, would you suggest that she: 1) Continue IKEA’s own monitoring and control processes or sign-up to Rugmark?2) Continue to focus only on eliminating the use of child labor in IKEA’s supply chain or engage in broader action to address the root causes of child labor as Save the Children is urging?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 WWF on forest management and conservation.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 the company deal with the ongoing issue of child labor in the supply chain?Keywords: Developing Countries and Economies; Moral Sensibility; Policy; Employment; Contracts; Supply Chain Management; Organizational Culture; Natural Environment; Non-Governmental Organizations; Social Issues; Bartlett, Christopher A., Vincent Marie Dessain, and Anders Sjoman.The name IKEA derives from Ingard’s initials, as well as the E from his family farm, Elmtaryd, and A from his parish Agunnyard.Ingard started small, selling fountain pens, cigarette lighters, and binders.

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