Traces the history of IKEA reaction to a TV report that the Indian carpet suppliers were using child labor. Describes IKEA growth, including the importance of sourcing strategy on close relationships with suppliers in developing countries. Details of the development of a strong IKEA culture and values, which include a commitment “to create a better everyday life for many people.” Describes how in response to regulatory and public pressure, a number of environmental IKEA polici developed … Read more »

Traces the history of IKEA reaction to a TV report that the Indian carpet suppliers were using child labor. Describes IKEA growth, including the importance of sourcing strategy on close relationships with suppliers in developing countries. Details of the development of a strong IKEA culture and values, which include a commitment “to create a better everyday life for many people.” Describes how in response to regulatory and public pressure, IKEA a number of environmental measures that include a growing relationship with Greenpeace and WWF on forest management and conservation developed. Then, in 1994, has Marianne Barner, a newly appointed IKEA product manager, surprised by a Swedish TV documentary about the use of child labor by Indian carpet dealers, including some that provide IKEA rugs. Immediately sets a strict policy that provides for termination of the contract if necessary IKEA suppliers used child labor. Then Barner is a German TV producer, it is transferred out that he documented an investigative program on the use of child labor in one of the major suppliers of the company faced. How should they respond to the crisis? How should the company deal with the ongoing problem of child labor in the supply chain?
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from
Christopher A. Bartlett,
Vincent Dessain,
Unlike Sjoman
Source: HBS Premier Case Collection
13 pages.
Release Date: 03 May, 2006. Prod #: 906414-PDF-ENG
Ikea Global Sourcing Challenge: Indian Rugs and Child Labor (A) HBR case solution