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The Ethical Failure Of IKEA

1507 Words7 Pages

The giant in the wood furniture appliances industry-IKEA was first founded in 1943 by Ingvar Kamprand in Sweden. It was named according to the initials of the founder, I & K from his initials as well as E for Elmtaryd and A for Agunnaryd. IKEA was in its name is a harvest well ripened by his owner’s true compromises made for the past 73 years of its existence. This company is all about providing well designed, ready to assemble furniture and household goods at low prices. At present it is the largest furniture retailer in the world, with a workforce of 139,000 employees working around the globe and annual sales income counts for 37 billion USD.
IKEA with a vision of “to create a better everyday life for the many people, had one of the best strategies in the industry- “ to offer a wide range of well designed, functional home furnishing products at prices so low that as many people as possible will be able to afford them. With features like global distribution network, large volumes, flat packages and low costs IKEA was able to remain as the toughest competitor in the all this period.
As per the requirement of this assignment two major ethical failures experienced by IKEA will be discussed and an in-depth analysis will be …show more content…

In a recent issue addressed by Forest Stewardship Council (FSC) in Russia, they accused IKEA of harvesting old growth trees in the protected regions of the Russian forests (Lee, 2014). According to a report created by FSC, it reported major deviations from standard regulations by IKEA’s Russia supplier. This has been a major hit to the company in a time which whole world’s concern is on protecting and improving current environment for the future needs of the

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