1. How should Marianne Barner respond to the invitation for IKEA to have a representative appear on the upcoming broadcast of the German video program?
For IKEA and Barner, appearing in the program has a lot of pros and cons that could heavily affect the public perception of the brand. One critical aspect of attending is that Barner shouldn’t be the only representative of IKEA present, given the high status of this issue, she should be accompanied by a senior level individual to show that IKEA takes the issue seriously and they are heavily prioritizing the assuagement of this injustice.
The team that would represent IKEA should clearly acknowledge the issue of child labor and understand that they are walking on eggshells. Preparation is key …show more content…
An investigation should be conducted and until proven otherwise, all transactions with Rangan Exports, shall be suspended and wouldn’t be reinstated until enough evidence has been found to overturn the suspension. Upon gathering enough evidence and information, IKEA has two options; the first is rendering sanctions and the second is the termination of contracts with the said violating organization. My recommendation would be the first option but depending on the severity of the offence termination might be a viable option. Barner should also personally visit various suppliers that have been issued sanctions to see if they are taking actions to right their violations of child labor laws or simply ignoring all the warnings of IKEA. They should also make it apparent that violation of the guidelines of the organization would not be tolerated.
If it is clear that Rangan Exports has violated one of IKEA’s core principles, Barner should not only take the opportunity to use Rangan as an example to other suppliers but also utilize them and see the bigger picture. Addressing that the issue of child labor is prevalent in impoverished countries all over the world and lead IKEA to a program that manages the problem and pursues the elimination of child labor worldwide. They should also pioneer a sustainable program that would document …show more content…
What long-term strategy would you suggest she take regarding IKEA’s continued operation in India? Should the company stay or should it exit?
The worst thing that IKEA could do now is leave India, leaving the region would create a perception that they are guilty and they are running away from their responsibility. The rug division of IKEA only contributes a small portion to its overall sales, but being seen, as an organization that runs away from obligation would create a terrible perception and create a publicity nightmare that would require a huge amount of time and budget to repair. IKEA should not only tackle the problems in the region in a progressive but also a proactive manner.
Furthermore, departing form India doesn’t erase the fact that child labor issues exist if IKEA doesn’t tackle the issue head on there will potentially be more child labor violations that would just be swept under the rug. The company should show that they are committed to their company principles and focus on caring rather than earning through