Ikea: Indian Rugs and Child Labor

Child labor is a serious problem that affects children from third-world countries all over the world. These children are exploited by multinational corporations ,for their cheap labor all over the world. People, then buy products that come at a cheaper price, from these multinational corporations.These children are often overworked and treated unfairly. People need to stop buying items from countries that endorse child labor.

The year to year increase in consumer demand for cheaper products have led major corporations to outsource labor in foreign countries with little to no laws preventing child labor and the building of sweatshops. Many parents here in America would be disgusted by the idea of forcing their young children to work long hard hours in factory but the truth is because of our desire for cheap products, “As many as a million children ranging in age from 5 to 15 work as debt-bonded laborers in the loom sheds of India, Nepal and Pakistan, according to the U.S. Department of Labor and the ILO” (Razzi 46). Many of the products we enjoy today such as soccer balls are made by child labor, “Eighty percent of the soccer balls sold in the U.S. are produced in a small region of eastern Pakistan, where about 20% of the work force is between 5 and 14 years old, according to the International Labor Rights Fund (ILRF)” (Razzi 46). Child labor does not just exist in third world countries, “The International Labour Organization (ILO), an agency of the United Nations that is based in Geneva, estimates that about 13% of the world's children between the ages of 10 and 14 work, along with untold numbers of younger children” (Razzi 46). Even more surprising is the that sweatshops also exists here in America, “More than a quarter of a million people work in U.S. sweatshops, according to the Labor Department” (Razzi

To correctly represent the company’s interest during the broadcast, the representative should be briefed about the delicate points to touch on. The representative should state all the actions IKEA has taken to inform themselves, react, and respond to child labor within their supply chain. Back in 1994, IKEA was first aware of child labor in their sub-contracting suppliers through a Swedish television documentary showing children in Pakistan working at weaving looms. Pakistan was a large importer of IKEA carpets at the time. Since this moment of awareness, IKEA had been dealing with this issue

The invitation to appear and be part in a live discussion on the upcoming program is a complex situation, analogous to interviews made for politicians close to elections. Even though, the environment is not the most favorable, every space is essential, and it is an opportunity for IKEA to assume their responsibilities and take ownership of the problem publicly, as they did when the issue of child labor was brought to their attention during the Swedish documentary. Additionally, the company will have the chance to explain to the public opinion all the actions that IKEA has been taking to fight against child labor, including the incorporation of a clause to all supply contracts that stated that “if the supplier employed children under legal working age, the contract will be cancelled” (Chistopher A. Bartlett, 2006). Furthermore, the appointment of an independent third-party to monitor child labor practices at its suppliers in India and Pakistan responsible of conduct random audits. As well as, the validation of the problem from IKEA’s delegation of recent trips to India. Not to mention, the partnership with the Rugmark foundation. And the frequent meetings between the company and the Swedish Save the Children organization, who has emphasized the importance for IKEA to find a solution that is lined up with “the best interest of the

IKEA is considered to be a low cost, high quality producer in the furniture industry, therefore it is important to

In the United States, child labor and sweatshops are illegal, and society frowns upon any business that exploits children in the production of goods. Though most would say that they would not support a company that uses child labor to produce its goods, almost everyone has, in fact, knowingly or unknowingly, supported these businesses in one way or another. Children are involved in the production of many of the everyday goods we import from overseas, including the manufacturing of clothes, shoes, toys, and sporting equipment, the farming of cocoa, cotton, sugarcane, and bananas, and the mining of coal, diamonds, and gold (The U.S. Dept. of Labor). Often, we are blinded to this fact.

So, there are two possibilities for IKEA to choose from. The first would be to refuse, and not have an IKEA representative during the TV show. As mentioned earlier, this could be seen negatively by the public as no one will be on set defending, or explaining IKEA’s side of the story. The second possibility would be for IKEA to send a representative prepared to answer difficult questions.

The majority of people’s opinion on the idea of child labor is derived from the images in the media. They are only exposed to the horrible images of adolescents working very dangerous and degrading jobs and from this they are quick to side with the elimination of child labor. What many people are not aware of is the necessity for child labor in many developing countries. Our paper outlines the causes of child labor and the need for children to work in many countries, the unseen benefits of these children working, and the action that our company intends to take.

IKEA’s values also extend to its suppliers and to social programs in the countries where it does business. Notably, the company has also committed itself to agricultural sustainability and to social programs throughout India. IKEA has partnered with the World Wildlife Fund (WWF) to improve cotton farming practices in the north. In 2009, these projects generated 150,000 tons of cotton grown in a sustainable manner—with IKEA itself purchasing 23,000 tons of this same crop to use in its products. Other programs in Indian involve their partnerships with the United Nations Development Program (UNDP) and the United Nations Children’s Fund (UNICEF). Both programs focus on women and children in Uttar Pradesh, where many of IKEA’s textile suppliers are based. The UNDP initiative seeks to empower women by teaching them business skills and offering micro-credit, training in functional literacy, and helping to get them involved in their local political processes. Through its partnership with UNICEF, IKEA is helping to eliminate child labor. This involves ensuring access to quality education in roughly 5,000 villages, as well as ending partnerships with suppliers who have been caught, during unannounced audits, using child workers (Sustainability Report, 2009).

Child Labour In the past few years, a great deal of attention has been drawn to the global problem of child labour. Virtually everyone is guilty of participating in this abusive practice through the purchase of goods made in across the globe, usually in poor, developing nations. This issue has been around for a great length of time but has come to the forefront recently because of reports that link well known American companies like Wal-Mart and Nike to the exploitation of children. Prior to this media attention, many Americans and other people in developed nation were blind to the reality of the oppressive conditions that are reality to many.

IKEA wants its coworkers to feel important so that they will be able to express their ideas and feel responsible for improving the way things are done (Larsson, Brousseau, Driver, Holmqvist & Tarnovskaya, 2003). For example, on opening day of the original Stockholm store, the warehouse could not cope with the rush of customers. The store manager suggested that they be allowed to go into the warehouse to pick up their purchases. The result was so successful that future warehouses were designed to allow self-selection by customers, resulting in cost savings and faster service (Bartlett & Nanda, 1996).

In 1995 one of IKEA suppliers in India was named for using children for labor in a rug factory. This was alarming to the IKEA Corporation. This news could have been damaging to the entire company if the right preventive measures were not taken. IKEA had to decide on their viewpoint on child labor and then had to make sure that what they did then and in the future was adequate to society standards. They will be watching to make sure that IKEA is true to its word.

* Child labour continues to be a concern in this day and age but because of the efforts of labour groups, governments, companies and ordinary people, the number of companies employing child labour is decreasing. As consumers, people should talk to business involved in the production of goods and ask them what measures they take to ensure that the goods they produce are child labour free. Companies caught to be using child labour should face serious penalties and should go to court. Citizens

IKEA continues to be a force in the U.S. furniture market, second only to Ashley Furniture Home Stores, however, the organization is not without its issues. In 2012, it was reported that IKEA and several international organizations were working with a Turkish supplier whose working conditions were deemed to be unacceptable. This allegation was particularly surprising for a company that boasts about its dedication to its own employees. The human rights whistleblowers claimed factory workers complained of hazardous working conditions. Watchdog organizations demanded IKEA, “the factory’s largest customer”, spearhead the movement towards improving working conditions (The Local SE, 2009). IKEA representatives released a statement explaining the company’s commitment to the factory workers stating “Workers’ safety is a cornerstone in the IKEA code of conduct” (The Local SE, 2009). IKEA has also been charged with misrepresenting employees about their right to refrain from union membership and failing to pay its employees a living wage. In 2014, IKEA announced it was “raising its average minimum pay by 17 percent, to $10.76 at the beginning of 2015” (McGregor, 2014). Peter Agnefjäll, IKEA’s CEO, was quoted as saying “We want to have a positive impact. We want to grow in a way that is people and planet positive” (Figueres, 2014). The forward thinking CEO has been described as a transformational leader; one interested in generating necessary change

Moreover, customers will trust IKEA’s products because the label can indicate products are produced without child labor. However, working with the third party is also of some risk. For instance, if IKEA allows Rugmark to monitor the process of production, they will learn about some internal information about IKEA, such as the way to manage suppliers. The foundation has members such as manufacturers and retails. If they know this kind of internal information, they might utilize it. To be worse, if this information is leaked to IKEA’s competitors, IKEA will be uncompetitive. Another disadvantage is that if the third party asks IKEA to pay for supervision, it might be costly.