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Case Study: IKEA's Global Sourcing Challenge

In the article "IKEA's Global Sourcing Challenge: Indian Rugs and Child Labor (A)"

1. Who are the stakeholders in this case? What are their values or rights? Are there any
competing interests between stakeholders? Remember to include the shareholder as one of
the stakeholders.

2. What are the national and global laws you need to consider for this case and how do they
apply?

3. What are the areas of social responsibility or sustainability (environmental, social or economic)
that apply to this case and how do they apply?

4. Identify the decision you would make and why you would make it considering: Global versus
national values, stakeholder rights and values, national and global laws, economic and
shareholder rights and values, and social responsibility issues in this case.

Solution Preview

1. Who are the stakeholders in this case? What are their values or rights? Are there any
competing interests between stakeholders? Remember to include the shareholder as one of
the stakeholders.

In reviewing the IKEA stakeholders, the identified group entail the children being used in the production of rugs, the guardians, the consumers, the transporters of the supply chain, children rights organizations for prevent, and the shareholders of IKEA along with fellow vendor organizations. By assessing the overall impacted individual or group within the circle of supply chain and investment, the identified stakeholders are clearly represented along with invested shareholder. Within the competitive marketplace of retail, such as, IKEA, the goal towards staying profitable and proficient entails reducing costs greatly. In most cases, the business organization uses cheap labor to meeting the board of director's goals to higher shareholder profits and less costs.

Keep in mind, the objective is to understanding when the aim for profitability is at stake, the senior business decisions can render foresighted approach to accomplishing such financial gain by any means. In the case study, the current senior leadership rejects the notion or practice to such activity, however, the quality checks into the selected vendor manufacturer seems not in compliant. The objective is producing the goods but without the ...

Solution Summary

IKEA's global sourcing challenges case study are examined. The national and global laws you need to consider for this case are determined.

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