Corporate Social Responsibility In IKEA

1.Introduction

Corporate social responsibility (CSR) is focus of the current business world, consumers pay more attention to the return of the company rather than the quality and price of the product. Recently, the increasingly international corporate scandals have exposed some serious issues on the roles and responsibilities of companies (Brammer, Williams and Zinkin, 2004). According to a report from PricewaterhouseCoopers (Cheney, 2004), companies that ignore environmental problem and social responsibility are all suffer disaster. In order for companies to be competitive in the variable business environment, they must making profits while making the world a better place. Therefore, the performance of companies should not only measured by

IKEA uses renewable energy sources occupy 53% total expending (IKEA, 2015). In addition, IKEA has been installed around 550,000 photovoltaic panels in nine countries, and has 96 wind turbines in operation in seven countries (IKEA, 2014). Moreover, IKEA paid 21.6% revenue as corporate income tax (IKEA, 2016). IKEA fulfils well in social responsibility that makes organisation, union and government satisfaction.

Thirdly, According to Adhikari(2012) research, Espoo IKEA employees are highly motivated by multiple factors, employees think IKEA is a good place to work. IKEA also sets IWAY (IKEA way of Purchasing products) standards to check suppliers’ behaviors, insure supplier workers’ rights (IKEA, 2017). IKEA treats customer responsibly, customer can return defect products in 60 days, and IKEA recalls defect products to protect customers

Finally, IKEA builds IKEA foundation to invest charity, until 2016 IKEA helped one hundred million children (IKEA, 2017). Therefore, public feels IKEA good reputation. IKEA used these approaches to make different level stakeholders happy. Hence, IKEA achieves social responsibility and sustainability in long-term