What long-term strategy would you suggest she take regarding IKEA’s continued operation in India? Should the company stay or should it ixi? (Discuss the impact of your decision and how you would manage it. ) * IKEA set up a list of ideas as of where they wanted their company to improve in. Included in this list was “working with suppliers” as well as “transport and distribution. ” Greater monitoring, meetings at the place of production, and reports should be a mandatory concept that is stated within the contract between IKEA and the supplier. Independent monitoring is a critical element of an overall system of improving labor practices,” * Community initiative program to bring up the child issue publicly among suppliers * IKEA to theoretically have direct control over the situation; it will not have to adhere to the terms and provisions of Rugmark’s program and it will not have to rely on the accuracy of Rugmark’s certification 1. if child labor is found taken place, supplier has to implement a corrective action plan.
If corrective action is not implemented within the agreed time-frame, or if repeated violations occur, IKEA will terminate all business with the supplier concerned. 2. The corrective action plan shall take the child’s best interests into consideration, i. e. family and social situation and level of education. Care shall be taken not merely to move child labour from one supplier’s workplace to another, but to enable more viable and sustainable alternatives for the child’s development. 3.
The Research paper on The following is an analysis of the IKEA
... emphasize on taking corrective actions. The report also analyses the entry methods used by IKEA and its sustainability. IKEA was founded by ... operations (trading service offices) in 33 countries with 1800 suppliers in 55 countries. !! The distribution operations covers 25 regional ... company began to design furniture that catered expressly to children. A website was launched to cater to the many ...
A complete solution must also address “the root causes such as debt, poverty, lack of access to education, disability and ill health. ” * All suppliers are obliged to keep IKEA informed at all times about all places of production (including their sub-contractors).
Any undisclosed production centres found would constitute a violation of this code of conduct. 1. IKEA has reserved the right to make unannounced visits at any time to all places of production (including their sub-contractors) for goods intended for supply to IKEA.
The IKEA Group furthermore reserves the right to assign, at its sole discretion, an independent third party to conduct inspections in order to ensure compliance with “The IKEA Way on Preventing Child Labour”. * Providing assistance to talk to the children themselves about what they need. * Footwear factories have heavier machinery and use more dangerous raw material, including solvents that cause toxic air pollution. At overseas actories that produce Nike shoes, the company said, it would tighten air-quality controls to insure that the air breathed by workers meets the same standards enforced by the United States Occupational Safety and Health Administration at home. * Another disadvantage is that IKEA’s decision not to carry any Asian rugs may inadvertently encourage the purchase of more rugs produced by child labor as purchasers go to competitors without effective child labor policies.
This may also give the impression that IKEA is hiding from the problem rather than attempting to contribute to its solution * Finally, this alternative does not prevent IKEA from being involved in another child labor scandal in another segment of the furniture/ home furnishings industry * The risk with such a response is that simply removing children from the workforce, and therefore taking away their income, may have predominantly negative consequences, possibly leading to the child becoming involved in more hazardous work than before.
