IKEA Global Sourcing Challenge Indian Rugs and Child Labor

Proposal Case: IKEA Global Sourcing Challenge: Indian Rugs and Child Labor Summary In this case, it is known that IKEA s procurement model is the mode of global sourcing. IKEA products are shipped to the 26 distribution centres from the trade area after procurement, and then delivered to the shopping malls in the world. IKEA s procurement philosophy and assessment of suppliers mainly include four aspects: continuous price improvement; strict supplier performance and service levels; good quality and healthy products; and environmental and social responsibility (IKEA Sustainability Report 2011). In the aspect of social responsibility, IKEA does not accept child labour, but also actively prevents the use of child labour†¦show more content†¦In addition, the communication of corporate social responsibility is crucial. It can maintain the attractiveness of IKEA for a new generation of partners. IKEA hopes that the partners in dealing with corporate social responsibility can show independence, but the ability to realize this issue will have to depend on the empl oyees’ management level (Maon and Swaen, 2006). Through this initiative, colleagues at all levels can increase the awareness of corporate social responsibility, so as to achieve the purpose of incentives. Key learning Corporate social responsibility is developed since the 1990s, which is a turning point of corporate social responsibility. IKEA is also in accordance with some of the pressure in this community to adjust its operating way on the requirements of the enterprise. IKEA s business is constructed in the price and quality environment and work environment (Maon et al., 2007). With regard to a supply and demand model of corporate social responsibility (CSR), it’s assumed that a firm’s size, level of diversification, research and development (RD), advertising, government sales, consumer income, labour market conditions, and stage in the industry life cycle could estimate the firm’s standard of CSR (McWilliams and Siegel, 2001). IKEA as a large multinational Corporation with 26 distribution centres and emphasis on RD andShow MoreRelatedIkea s Global Sourcing Challenge Indian Rugs And Child Labor1532 Words   |  7 PagesIKEA’S GLOBAL SOURCING CHALLENGE INDIAN RUGS A ND CHILD LABOR In 1995, Marianne Barner, IKEA’s manager for carpets, faced a difficult situation when one of their Indian rug supplier apparently was involved with the use of child labor in the manufacture of its products for IKEA. Even though they had a contract where IKEA explicitly forbid the use of child labor. 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