Students:)Ana)Alves)&)Marina)Yessika)Yudithia)IKEAs)Global)Sourcing)Challenge:)Indian)Rugs)and)Child)Labor)(A))

Corporate)Responsibility)E)Columbus)Cohort))Team)11))

1. How) should)Marianne) Barner) respond) to) the) invitation) to) have) an) IKEA) representative)

appear)on)the)German)video)program?)

Marianne' Barner' should' take' this' opportunity' to' give' an' explanation' about' the' IKEAs'

position'regarding'the'child'labor'issue'from'one'of'their'biggest'supplier.'If'IKEA'refuses'the'

invitation' it' would' insinuate' that' IKEA' is' reluctant' to' provide' answers' for' some' unknown'

reason'or'has'something'to'conceal'and'this'action'could'damage'their'image.''In'the'other'

hand'if'accepting'the'invitation'IKEA'would'reduce'wrong'public'perception.'Moreover'IKEA'

could' clarify' that' they' are' seriously' concerning' about' that' issue' and' they' are' going' to' act'

against'it'immediately.''

2. What) actions) should)Marianne) Barner) take) regarding) IKEA) supply) contract) with) Rangan)

exports?)

Marianne'Barner'should'cutAoff'the'contract'with'Rangan'exports'even'though'they'are'one'

of' their' biggest' suppliers' because' they' infringed' the' contract' addendum'about' child' labor'

that' is'against'the'culture'of'their'company.'We'also'consider'that'the'end'of'this'contract'

would'cost'IKEA'losses'and'hurt'in'sales'but'in'the'other'hand'the'use'of'child'labor'in'their'

products'would'also' impact'their'sales'after'the'public'heard'about'this' issue.'Under'these'

circumstances'it'would'be'better'to'lose'one'supplier'rather'than'to'lose'significant'number'

of'customers.''

3. What)longEterm)strategy)would)you)suggest)she)take)regarding)IKEA's)continued)operation)

in)India?)

In' order' to' keep' following' the' philosophy' and' ideology' from' IKEAs' founder' To$ create$ a$

better$everyday$life$for$the$many$people'they'should'consider'to'supervise'all'the'suppliers'

closely'and'be'more'restrict'about'the'penalties'if'they'do'not'comply'with'the'contract.' In'

addition'they'should'allow'Rugmark'to' take'care'of' the' issues'on'child' labor' for' IKEA,' thus'

IKEA'could'be'more'focused'on'their'business.'The'Corporate'Social'Responsibility'is'complex'

to'apply' into' the' supply' chain'but' IKEA' should' improve' their'way' to' select' their' suppliers.'

They'should'make'a'search'in'the'supplier'background'before'sign'a'contract'in'an'attempt'

to'clarify'IKEAs'beliefs'with'theirs'expected'suppliers.'