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Ethical Issue Ikea (M'sia) Essay

652 words - 3 pages

Ethical or International Issue on Ikea

Ikea is one of the biggest product retailers from Sweden. Ikea penetrate to a lot of countries, one of the good example is in Malaysia. The question here is how they penetrate into the other cultures, as we know that Ikea is famous for their product that comes from Swedish culture. So, as a big company, they need to think of how to respect and create the opportunities to sell their product with the other cultures or countries.

Ikea’s furniture is a well known for its modern and practical design. Much of Ikea's furniture is designed to be assembled by the consumer rather than being sold pre-assembled. Ikea claims that this permits them to reduce costs and use of packaging by not shipping air; the volume of a bookcase, for example, is considerably less if it is shipped unassembled rather than assembled. This is also a practical point for many of the chain's European customers, where public ...view middle of the document...

The planned result is flexible, adaptable home furnishings - scalable both to smaller homes and dwelling as well as large houses.

One of the reasons why the consumer loves Ikea’s product is because of the prices are low. Ikea has been working on ways of creating low prices – purchasing as inexpensively as possible, flat-packing furniture for customers to put together themselves. But Ikea ambition doesn’t stop there. Ikea also want the products that they sell to be free from hazardous substances. They don’t want the wood in bookcases, tables or other products in the store to come from areas where forests are being devastated. All IKEA suppliers must follow certain fundamental rules. Working conditions must be acceptable, child labour is not tolerated and suppliers must adopt a responsible attitude to the environment. This is a good way to help the environmental issues. Their initiative is to support children and their opportunities for learning and development

There are two cornerstones of Ikea’s environmental work which is cost consciousness and resource efficiency. Ikea use fewer raw materials and create less waste and discharge. Secondly is the extensive use of wood in their products.
Wood is a recyclable, eco-friendly and renewable material. It is an excellent material to use from an environmental point of view. Other than that, when Ikea opens their store in Malaysia, some certain rules have to be followed. One of the best examples is that in the Ikea canteen, the food, which is imported from Sweden, has to be all based on ‘Halal’ terms. As we know that all of Ikea’s products are from Sweden, but they still add on the Malaysian culture in it, for examples, there are designs that Malaysian’s culture won’t buy, so they didn’t put it in.
Although Ikea household products and furniture are designed in Sweden, they are largely manufactured in developing countries to hold down the costs. Very little production actually takes place in Sweden. They are very strong follow the moral issues, like the example that have stated above, which is about environment, low prices with good quality design and they follow certain culture that they sell it even though only two percent.

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