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Business Ethics-What Should Barner do - Term Paper Example

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Name: Institution: Course: Tutor: Date: What Should Barner Do? Introduction The growth of IKEA is strongly based on its strong network of outsourcing. This is a strategy that has created and strengthened relationships with suppliers in countries that are still developing…
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Business Ethics-What Should Barner do
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The following case circumstance therefore is more of a challenge to the policies that they have and the values that they purport to uphold. The use of child labor is an unacceptable part of any contemporary society or conceivable reality. While this may be the general and ideal case, there are certain countries that still use children to make profits. The case presents Barner with a significant opportunity for the company. IKEA should clearly come out and accept this fact and the complexities that it possesses.

Even in situation that child labor may be camouflaged as household chores; they should be in a position to distinguish the two and strengthen their policies (Jeruissen, 135). First of all, it gives her an opportunity to review the policies that they have in place as to trade practices. Secondly, it presents her with an opportunity to start validating the type of suppliers that IKEA trades with. Thirdly, it provides her with the chance to ensure that the suppliers that she deals with conform to the policies that IKEA holds as strong values and finally, it presents her with the chance to show that IKEA is more than an organization that is out to make profit by any means necessary.

All these instances are ethically based and not commercially focused. If they were commercially focused, the interest of the child would be the least of concerns because the suppliers would argue that the children are paid for their services. Next Move One major step that ought to be taken before any other moves is to first apologize for the ignorance about the issue in which IKEA has found itself in. this apology should bring out the point that the company intends to take the necessary corrective measures to clear the mess.

It should also include how this corrective move is going to be applied so as to ensure that such mistakes are not commonplace in the future. In this way, the brand value that IKEA has developed over the past as the case shows, will not only increase but will also sell out. Most people appreciate the fact that they are dealing with company’s that appreciate social values. It is however essential that Barner finds the best way to understand the situation in which this supplier has put them. It would be wrong to take harsh measures on a company that was otherwise following genuine policies.

This is because global outsourcing also has its share of cultural, social and regulatory differences that have to be dealt with. In dealing with such issues, the effect should in no way interfere with the supply and distribution chain. IKEA as a company has already built a customer niche that has grown loyal. If actions that Marianne Barner takes interfere with their demand for products, it would not only interfere with the sales but customer confidence too. Therefore, any decision on any of the proposals that IKEA has received should also not be unethical (Griseri, & Seppala, 227).

It should be noted that the production of carpets in India is spread over a geographical area that is very large. From the vast countryside to several smaller units; at times to even individual looms within the villages in these farms. This would therefore make it impossible for IKEA or any other organization that deals in a similar supply chain to effectively guarantee that there is no use of child labor at any point in this wide and long chain. Therefore, the idea that IKEA should sign up to an industry-wide response to the growing concerns

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