Essay on Ikea - Business Ethics

Words: 1855
Pages: 8

IKEA in Russia - Ethical Dilemmas
Lusine Demirjian
Business Ehics
I-Executive Summary IKEA is the world’s largest retailer of home furnishings. It strives to provide simple, functional, modern, and useful products at affordable prices to as many people as possible in as many places regardless of their geographical location. IKEA concept is implemented from the start of idea, implemented into the design, manufacture, logistics, sales and final assembly of each product. IKEA was developed by Ingvar Kamprad from southern Sweden, where people are known for surviving and making the most from limited resources. IKEA has aggressively pursued expansion into emerging markets as well as developed economies to make it possible for all
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Carl Ola Ingvaldsson. Mr. Ingvaldsson fled the country prior to capture. In addition, same year global environmental agencies became aware of IKEA’s use of poorly written Russian logging rules where old growth trees were being cut down. This caused people to question IKEA’s environmental conscious and socially responsible policies.
III - Solutions IKEA must institute effective immediately, employment policies where each co-worker signs on to adhere to its policies in respect to being environmentally and socially responsible to avoid any further embarrassment to its image. In addition, it should create an Internal Audit Department hereby referred to as IAD, MUST annually review and pay surprise visits to inspect, check and confirm each division for possible corruption and practices that is against its policies. Similarly, it needs to slow down its expansion plan in pursuit of entering every market to drive even further profits. It is immoral for IKEA on all grounds to project an image of environmentally and socially responsible company when in fact it is failing to control its employees’ behavior. Corruption and bribery as well as practices for its suppliers must be kept in check and punished equally across the board to avoid any further damage.
IV – Optimal Solution Optimal solution, I believe to be implementing IAD where co-workers visit each subsidiary along with outside party