IKEA's Response to Child Labor in India: Key Questions and Strategies

How should Marianne Barner respond to the invitation for IKEA to have a representative appear on the upcoming broadcast of the German video program? Why?

1. How should Marianne Barner respond to the invitation for IKEA to have a representative appear on the upcoming broadcast of the German video program? Why?

2. What actions should she take regarding the IKEA supply contract with Rangan Exports?

3. What long-term strategy would you suggest she take regarding IKEA’s continued operation in India? Should the company stay or should it exit? What is the impact of such a decision and how would you manage it?

4. If Marianne Barner continues to source carpets in India; how should she proceed and why?

a. Continue IKEA’s own monitoring & control processes or sign-up to Rugmark?

b. Continue to focus on only the elimination of child labor in IKEA’s supply chain or engage in broader action to address the root cause of child labor as Save the Children is urging?

5. How appropriate were the various actions IKEA took in response to the 1994 crisis?

6. What is your evaluation of the IWAY policies & practices that have redefined IKEA’s relationship with its suppliers? What benefits do you see? What concerns do you have?

7. What does the recent audit of Venkat Industries tell us about the effectiveness of IKEA’s overall approach to dealing with the problem of child labor in its supply chain?

8. What should Marianne Barner recommend to Kaisa Mattson in dealing with Venkat Industries’ recent audit result?

9. What long-term changes in IKEA’s philosophy, policies, and practices should she recommend to Anders Dahlvig?