Analysis of ethical issue in IKEA’s Global Sourcing Challenge
As we all know that IKEA was one of the largest specialized furniture retailers in the world. Its retail sales go up year by year while it also comes out some ethical problems: the environment and child labor. During the 1980s, some tests show that IKEA products emitted more formaldehyde than was allowed by legislation, which is harmful for people’s health. And it was even more severely challenged in the mid-1990s when accusations of IKEA suppliers using child labor surfaced.
In the early 1980s, a regulation was passed to define limits for formaldehyde in furniture products. As the prime target for investigating, IKEA was showed that the amount of formaldehyde exceeds the limits which are very harmful to people’s health. IKEA invested this environment problem and ...view middle of the document...
Those methods are quite good for protecting the environment but the cost maybe will high so that not so much profit can be earned. I think we should advise the important of protect the environment and also could make some regulations, if anyone cut the tree which cannot be used, they will be punished and pay lots of payment.
Another issue is about child labor. In 1994, a Swedish TV found that children in Pakistan working at weaving looms. Those companies involved in this situation including IKEA. IKEA said that Pakistan was not signatories to the convention which don’t allow children under 15years old to work. It’s because the different countries have different laws. And also they appointed a well-known Scandinavian company with extensive expertise in providing external monitoring of companies’ quality assurance programs and gave them the mandate not only to investigate complaints but also to undertake random audits of child labor practice in suppliers’ factories.
From the government’s 1991 census figure of 11.3million children under 15 worked in India. And children could be bonded in order to pay off debts incurred by their parents. To protect children, the government passed the child labor act in 1986, which prohibited the use of child labor in certain defined ‘hazardous industries ’ and regulated children’s hours and working conditions in others. Indeed, the law specially permitted children to work in craft industries and even with these laws, exploitive child labor was widespread because laws were poorly enforced and prosecution rarely severe. So the government should regulate the laws more precisely and enforce it strongly, and of course prosecute more severely if anyone against the laws, also they should create more opportunities for children to learn and study instead of work.