Ikea Case B Essay

292 WordsSep 24, 20142 Pages
IKEA – CASE B • How appropriate were the various actions that IKEA management took in response to the crisis of 1995 as described in the (A) case? After the crisis of 1995, IKEA tried to work on preventing child labor among IKEA’s suppliers by taking certain measures: introduction of a clear code of conduct, development of internal controls and third-party audits, training of its suppliers, support of their corrective actions and institution of stiff sanctions against offenders. Even though the company was applying these measures in order to solve this issue, after 10 years of working on that, they were still finding cases of child labor in its supply chain. After the first accusations about child labor against IKEA from the German documentary producer, with input from the International Labor Organisation (ILO), the company added a new clause to all supply contracts, stating clearly that any evidence of child labor would lead to immediate contract termination. Introduced a clear code of conduct Partnership with UNICEF and Save the children Barner became IKEA’s children’s ombudsman • What is your evaluation of the IWAY policies and practices that have redefined IKEA’s relationship with its suppliers? What benefits do you see? What concerns do you have? Use content from the tree articles #16, #17 and #18 to answer this question. • What does the recent audit of Venkat Industries tell us about the effectiveness of IKEA’s overall approach to dealing with the problem of child labor in its supply chain? • What should Marianne Barner recommend to Kaisa Mattson in dealing with Venkat Industries’ recent audit result? • What long-term changes in IKEA’s philosophy, policies, and practices should she recommend to Anders Dahlvig? Use content from the tree articles #16, #17 and #18 to answer this

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