IKEA should stop getting their goods from India until child labor is eliminated from their suppliers because the company is losing their good reputation and also a significant amount of profits. IKEA should terminate the contract with Rangan even though it was one of the main manufactures because they were the ones that did not follow what the contract said concerning child labor and also because they were the ones that gave IKEA a bad reputation.

IKEA will have the opportunity to look for another supplier that produces rugs and at the same quality and for lower prices. This will help IKEA get their good reputation back and help them to continue selling their products for lower prices. Before making the contract with the new supplier, IKEA should ensure that the new supplier will agree to not have child labor in their factories. If this agreement is broken IKEA will end the contract. If IKEA makes these changes I think IKEA will avoid child labor issue with their suppliers.

IKEA associated with manufacturers in foreign countries that provided goods for a lower cost to the company. IKEA bought rugs from India at a cheaper price, “To create a better everyday life for the many people,” however IKEA did not know that India was using child labor. They gained success by selling furniture to the public for a lower price. Unfortunately, IKEA was accused for child labor in India. IKEA was told that their producers were using child labor, which means that there were children working in their factories and homes.