Ikea Global Sourcing and Child Labor

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IKEA’s Global Sourcing: Indian Rugs and Child Labor 1) How should Marianne Barner respond to the invitation for IKEA to have a representative appear on the upcoming broadcast of the German Video Program? Based on the offer to appear on the upcoming broadcast on the German Video Program, I think that they should decide to decline the offer. From my point of view, it seems like the German Video Program is trying to incriminate IKEA. If a representative were to go to the German Video Program, they would probably be faced with several misleading questions that could potentially lead to the representative giving out incriminating information, whether true or false. 2) What actions should she take regarding the IKEA supply contract with Rangan Exports? I think that the best course of action is to send out an investigation to these suppliers to ensure that they are in compliance with the ethical standards, laid out by IKEA. IKEA should perform this investigation on all of their suppliers even though the problem originated from Rangan Exports. This way they can prevent a problem like this again, if any other of their suppliers happens to not comply with the standards of IKEA. This would help keep the issue from arising into view with the public. As for the contract, if IKEA decides to keep the contract they could risk bad publicity regarding the issues that arose. They could even tarnish their brand name because of associating with suppliers who condone child labor. If IKEA were to terminate the contract they could face a slight financial instability in the short run. IKEA could easily drop Rangan Exports as a supplier and only suffer a short run deficit because they have more than 2,000 suppliers. I think IKEA should inspect and negotiate with Rangan Exports and then terminate their contract if they do not adhere or try to comply with the agreed

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