Case Study #5: Ethical Issues in IKEA
1. Ikea is an international company, therefore; it is managed not only by a single board of
directors, but also by stakeholders, franchisors, and franchisees. Their organizational
structure is not straightforward, which can lead to disparities in perceptions of their values,
mission, vision, and corporate social responsibility in general. Leading the management team
in the IKEA group has a hard mission to accomplish – successfully transferring the right
company’s values through reliable communication and dedicated work. One thing that
management can do is establish clear communication with external stakeholders about Ikea's
corporate and social responsibilities. Because stakeholders frequently come from all over the
world, one way to achieve that goal is to establish surveys (collecting feedback for different
regions) that must be conducted on a regular basis. Moreover, managers might include
external representatives of the brand in active communication, presenting CSR policies
clearly in annual meetings. Monitoring the implementation of CSR decisions and building
trust between various stakeholders helps, too. Management must present information about
CSR policies in a transparent manner and successfully transfer it via various communication
tools. Customers, suppliers, and employees can also play an important role in meeting
objectives and action plans for CSR. Once top management has established the appropriate
CSR standards, it is up to the leaders of each company to successfully implement them
locally.
2. The next step regarding everything written above would be to arrange a meeting of top
management in every region the company operates in. Once a clear plan has been developed,
it must be transparently presented to people working in CSR departments in each company
operating within a single region. Once introduced to the department, the implementation
process can begin, and active communication must continue to ensure successful
implementation. Surveys must be implemented, feedback must be sent on time, and any
serious issues with implementing CSR policies must be discussed within the department.
3. In addition to clearly stating CSR policies to stakeholders and regional management,
corporate social responsibility rules and norms must be implemented in every employee in
every position. Employees must be familiar with the material of social and environmental
policies in order to complete the process successfully. I would assign a person/ supervisor
from every department to make sure that everyone is included and informed about the new
approach. HR would play a significant role in organizationally constructing how information
would flow and where and to whom employees could reach out when having a dilemma or
just simply a question. If a company wants to pursue a new approach, it needs to be sure that
every employee knows everything about it. In this manner, the goal can be effectively
attained. I believe that it is not of vital importance for the general public to know about IKEA's
newest practice, but it could boost IKEA's image. When a company displays all of its practices
on the outside, it creates a positive image and impression for the general public.