Ikea Essay

1361 Words6 Pages
German Video Program In order to avoid damage to IKEA’s brand, Marianne Barner must respond quickly and decisively to this threatening documentary that accuses IKEA of letting children make some of its products, which is considered terribly immoral by many of its customers. IKEA needs to have a representative on the program or use another method to educate the public about the situation in India that leads to child labor and explain what the company intends to address the issue. The public needs to understand that this is not an IKEA issue but an India issue. These children in India who are sewing rugs do not have any better option unless someone volunteers to help them. If these children are not sewing rugs, they will have to make money a worse way or will not be able to have any money at all. They certainly will not be in school just because some companies refuse to use them as labor – they are working because they have to make money to live or pay off debts. Supply Contract with Rangan Regarding the alleged use of child labor by Rangan for IKEA products, IKEA must first investigate to see if the claims are true. Even if Rangan used child labor, that alone does not prove that Rangan used child labor for IKEA products. If Rangan did use child labor for IKEA products, the contract actually seems to be worded in such a way that it is not a breach of contract. Rather, the wording seems to obligate IKEA to cancel the contract if child labor is found to have been used. Therefore, if Rangan used child labor to make IKEA products, IKEA is contractually obligated to cancel the contract. Additionally, IKEA should review the contract to see if there is any provision that would provide IKEA compensation from a supplier that damaged IKEA’s reputation. Long-Term Strategy for India Sourcing Decision IKEA does not have the capacity to make these products

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