Case Commentary

Case Commentary
Weiming Zhou
Ethical Issues in the Business Environment
Business judiciary 840
University of De honorare MBA Spring 2011

Introduction
IKEA, the worlds top furniture retailer, has fix a giant furniture producing corporation during the last some(prenominal) decades. In the last year, the IKEA group has operated in 41 countries with vomit up consisted of approximately 1,074 suppliers and 9,500 products in 55 countries. Despite the companys significant financial success, there are two study concerns arising from the case IKEAs Global Sourcing Challenge: Indian Rugs and electric shaver Labor.
Environmental Issues
In the early 1980s, IKEA has faced an environmental impression due to the formaldehyde emission. The material in which furniture manufacturers employ this chemical compound could threat human health, and cause a variety of disease, such as watery eyes, headache, and difficulty breathing. As Danish authorities passed regulations with respect to the limits for the formaldehyde emission, IKEA has been charged as excessive formaldehyde producer and the company was fined. As a consequence, its sale decreased by 20 percent in Denmark.




In rig to address this problem directly, IKEA determined to fall in with some glue-producing chemical companies, such as ICI and BASF, and eventually cut down the formaldehyde off-gassing in its products. However, a decade later, the similar formaldehyde problem came back again. At this time, instead of the previous collaboration of the aforementioned companies, IKEA strengthened their partnership with WWF, established new forestry indemnity and monitored suppliers compliance by appointing forest managers.
Although IKEA seemed like as if they had already solved the problem, those environmental issues stemmed primarily from the cost of unresisting responding strategy. In terms of the formaldehyde issue, IKEA did not pay abounding attention to the potential outcome until it faced confrontation from the law agency in...If you want to get a full essay, order it on our website: Orderessay



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