Ikea CaseI believe it’s in the best of interest of Marianne Barner and IKEA to sign up to the Rugmark initiative, the industry-wide labeling and monitoring program of child labor in the carpet industry. In my opinion the one thing that IKEA lacks to understand is that many countries have their own cultures and unique ways about approaching certain things. Obviously IKEA can’t seem to get the issue of child labor and its suppliers under control. I understand that IKEA views itself differently than other countries and values the relationships it has established with suppliers throughout the years but at some point I believe that the company needs to move forward and do what’s in the best interest of the company. Under IKEAS current process the company will always be at blame in the public eye. However under the Rugmark initiative IKEA will be a part of a group of manufacturers, importers, and retailers who are protected under the organization.
Since IKEA has been publicly scrutinized multiple times for issues related to Child Labor laws I believe it’s in the company’s best interest to engage in a broader action to address the root causes of the issue instead of only focusing on eliminating the use of Child Labor within its supply chain. In doing so this will show the public that IKEA is taking the matter seriously and wants to make a difference not only within its operations but at a social level as well. The case study states that IKEA’s vision is “creating a better life for the many people.” In my opinion IKEA needs to focus on carrying out its vision and proving to itself as well as the rest of the world that the company does not condone child labor practices and will do everything in its power to eliminate the issue.
[Update: A clarification by The Daily Beast to The News and IKEA, which is not affiliated with IKEA Holdings, as well as to newsstand chain, the Daily Express. The clarification does not reflect IKEA Holdings’ policies or activities.]
When the question of child labor issues in China has sparked controversy, so do we. There are many stories about how businesses and organizations operate in foreign markets, and when we meet with the government and law enforcement on the issue, there are many, many solutions that we take to improve the lives of everyone who uses our products, as well as those of our employees, both within the industry and in the world. On the other hand, the problem with child-industry stories is that they often present the Chinese government as the only authority on the matter.
When we met with China’s representative on this issue, she stated the same thing we all heard in Russia, at the same time:
“We want the government and government officials to be careful to understand that a certain line of thought is really good, whether they be government or citizens or people who use our products and services, but it is possible to think that it is not really the case,” she said.
So clearly, the same line of ideas exist in China as well. We should all be careful to watch this closely.
[Original post follows. Here’s our take on whether China is going to address China’s issues with child-industrialization in China, with our full comment.]