Traces the history of IKEA’s response to a television report that its Indian carpet suppliers were using child labor. Describes IKEA’s growth, including the importance of supply strategy based on its strong relationships with suppliers in developing countries. Details the development of a strong culture and values â€‹â€‹include a commitment of IKEA “creating a better everyday life for many people.” Describe how, in response to regulatory and public pressure, IKEA has developed a set of environmental policies are developed to encompass a relationship with Greenpeace and WWF on the management and conservation of forests. Then in 1994, Marianne Barner, head of IKEA newly appointed product is surprised by a Swedish television documentary on the use of child labor by suppliers of carpets from India, including some that provide IKEA rug. It shall immediately? Implement a strict policy that provides for the termination of the contract, if an IKEA supplier uses child labor. Then Barner faces a German television producer who informs him that he is about to deliver a program of research on the use of child labor in one of the main suppliers of the company. How should I respond to the crisis? How the company faces the issue of child labor be in the supply chain?
Christopher A. Bartlett,
Source: HBS Premier Case Collection
Publication Date: 03 May 2006. # Prod: 906414-PDF-ENG
IKEA Global Sourcing Challenge: Indian Rugs and Child Labour (A) Case Solution