IKEA Child Labor Synopsis of Case Study

Terminating the contract completely would further jeopardize the exploited workforce by eliminating payment for work they have already done and force greater hardship upon them. The second alternative would ultimately respond only to the needs of the contractor/supplier and would not show the consumer good faith in the situation or respond to ongoing exploitation beyond what the contractor itself deems they can "get away with."

Expected Results and Rationale for the solution: Detail your conclusions and recommendations with supporting rationale including concepts from the text or other sources. Relate how you would have handled situations, problems and people. Write a clear and concise conclusion. Cite sources to substantiate what you say.

The expected results of the third alternative would likely be a proactive/long and short-term solution-based response where the needs of those already exploited are responded to functionally through programs such as those suggested by Hue, such as an educational opportunity plan for children identified as well as family and cultural education and local and regional lobbying of the government to respond more fully to the problem (2009). The response can serve as a benchmark for IKEA to deal with the long-term issue of child labor in many industries in India and elsewhere, and to some degree the rather small issue or product percentage that rugs encompass is a good place to test such a program and plan, that counters the demand for lower cost products in the face of any obstacle, social or moral.

Positive and Negative Results: Describe expected positive results. Identify possible negative results of successful implementation of the solution. In other words, what are the negative consequences of success? We all know failure is a possibility, but what do you need to be prepared for if you are successful.

Positive results could be seen in the development of programs that publically show IKEA taking an interest in the lives of the families affected by poverty and forced to allow very young children to work. The publicity as well as social development could ultimately aide in the overall goal of mitigating the challenges of global sourcing and globalization in general (Hue, 2009). The negative outcomes would be the initial cost of such program development and implementation and the possibility that the cost will be shifted to consumers, so awareness may need to be a part of that cost shift, with education and possible displays demonstrating proactive intervention on the part of IKEA. Finally, taking a long-term proactive approach in the form of programs might set a standard that requires such intervention elsewhere at a greater cost, but again the review and greater interaction with suppliers is an essential aspect of mitigating harm caused by reaping the rewards of low cost labor in a global economy.

Resources

Bartlett, C.A. Dessain, V. Sjoman, A. (November 14, 2006) "IKEA's Global Sourcing Challenge: Indian Rugs and Child Labor (A)."

Barner, M. (January 10, 2007) "The IKEA way of preventing child labour." http://www.ikea.com/ms/de_AT/about_ikea/pdf/IWAY_preventing_child_labour.pdf

Hue, L. (November 6, 2009) "Case Study of IKEA with Indian Rugs and Child Labor." http://huele3287.blogspot.com/2009/11/case-study-of-ikea-with-indian-rugs-and.html