Human Rights and Global Sourcing Essay

2279 Words May 1st, 2012 10 Pages
After a few years of IKEA undergoing speculation of unreliable suppliers in countries such as India, Pakistan, and Nepal whom used child labor freely throughout their practices, Ikea’s business area manager of carpets, Marianne Barner, was faced with a dilemma that she was quickly forced to overcome, change, and improve.

In 1995, a well-known German TV reporter broadcasted an ongoing investigation report naming a main supplier of Ikea used child labor in their work place. Although this supplier claimed to recently sign an agreement in their IKEA contract forbidding the use of child labor or else termination, recent video and still-photographs have proved otherwise.

In a whirl-wind of events, Barner was forced to look into
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After that, he kissed the small items ‘good-bye.’

In 1951, Kamprad opened a small display store for his products in Almhult Village, a small village within his country Sweden. This allowed his consumers to inspect their products before buying. After the success of this show room, he stopped accepting mail orders as a whole. Instead, he started offering a large range of home furnishing.

From the beginning, Ingard had a goal to sell “a wide range of home furnishing items of good design and function at prices so low that the majority of people can afford them.” With the start of an already successful business as well as this mind set, Ingard started offering a full catalog, expanding his business larger than ever before.

IKEA’s concept started becoming what it is today in 1953. For the lowest price, Kamprad’s products came as a self assembled furniture. From then on, sales only increased. From 1953 to 1955, sales doubled from SEK three million to SEK six million. Not everyone loved the idea of this new furniture store though. Swedish furniture stores started pressuring Swedish manufacturers to stop selling to Ikea. So in 1961, IKEA went elsewhere and contracted several furniture factories in Poland.

IKEA decided that they didn’t want to own their own line of production. Instead, IKEA felt the need to develop close ties to other suppliers and that creating long term relationships were more important than anything else. In 1963,

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