Business Management - Corporate Social Responsibility at IKEA - Essay Example

Business Management- Corporate Social Responsibility at IKEAThe business society requires in-depth and critical assessment of various factors by the entire management fraternity. The changing business climate and social rules are significant in influencing the direction of the company especially in the international platform. This requires outstanding management skills and realist approach to the dynamic market keeping in mind the organizational culture. Ikea is a global corporation and requires a sound management skilled which it has tried to implore to remain where it is even today.

Ikea has a culture of quality products at affordable prices which are focused on providing comfort at less cost (Coombs & Holladay, 2012, pg47). This is of great social welfare of the society .As one of Ikea’s executive says about Kamprad “He focuses on the human. What motivates Ingvar Kamprad is not profit alone but improving the quality of life of people”. The company has demonstrated this through supply of products which have global acceptance as they fit the diverse socio-cultural aspects of any market segment in the various countries of operation.

Kamprad who is the founder of the firm takes personal initiative to meet employees and clients face to face before holding a participatory decision meeting with the management. This Ikea’s customer focused products requires complete involvement of the staff, suppliers and other stakeholders and this explains its centralized management and a well co-ordinated international marketing and franchised entities under its name. The interest of the society is taken into consideration by the company from its evident global appeal and its founder’s less bureaucracy style of leadership for efficiency and quality.

The increasing call for social responsibility of Ikea in terms of environmental care has seen it reorganize its management strategy and overall objective. There are several complaints brought against the global operation of Ikea and of central concern is the child labor which some of its subsidiaries in India are involved in. The international trade regulations and the general expectation of the society are to keep children out of labor. It is therefore evident that the child labor case in India which is an associate of Ikea significantly tainted its reputation and overall sales revenue.

This is an act perceived as exploitation and its effect on the company’s image has considerable drawbacks in its market performance (Coombs & Holladay, 2012, pg63). In respect of the business culture of Ikea which is focused on serving humanity, a concept of self-contradiction is presented by what is taking place. This explains its immediate change of tactics in its operation with a campaign of its core business culture promotion in its various stores across the world. This is seen to focus on reviving its image and ensuring that it operates within the confines of international business ethics.

The issue of sustainability is a critical aspect of Ikea’s continued survival and service delivery within its long standing culture. In regard to the social corporate responsibility debate and environmental degradation which the company is a contributor, there have been an internal strategic plans to adopt ethical and sustainable business practices. To assert its culture of better life to the society, it is in the interest of Ikea’s stakeholders to embrace considerate forest exploitation that would not be counterproductive to its much talked about focus on human welfare (Coombs & Holladay,2012,pg70).

At one point he says, “Ours is accompany with big responsibility”. This has led to reorganizing value creation activities in respect of availability of forests and minimized transportation distance and means to cut on the overall loss of profit and keep its image.ReferenceCoombs, W. T., & Holladay, S. J. (2012). Managing corporate social responsibility: a communication approach. Chichester, Wiley-Blackwell.