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Essay / Research Paper Abstract
This 5-page paper outlines IKEA's response to child labor among its Indian suppliers, and discusses the behavior of the corporation based on Freeman's stakeholder's theory and Friedman's money-making assertions. Bibliography lists 6 sources.
Page Count:
5 pages (~225 words per page)
File: AS43_MTikeacorp.rtf
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Unformatted sample text from the term paper:
in India was found to be manufacturing rugs shipped to IKEA using child labor (Bartlett et al, 2006). This was a problem in and of itself - but IKEA had
recently signed an addendum to its supply contract, forbidding the use of child labor for its goods (Bartlett et al, 2006). Violation of the addendum meant termination (Bartlett et al,
2006). But the scenario wasnt cut and dried (as most of them arent). On the other side of the coin was
the fact that terminating the supplier would cause a disruption in supply, not to mention sales (Bartlett et al, 2006). Furthermore, with Indian rugs representing a small portion of IKEAs
overall profits, there were those who believed that IKEA should simply not get involved in a long-term banning, and should probably even jettison the rugs as a sale item (Bartlett
et al, 2006). Nor was this the first time the Swedish giant retailer faced such an issue - earlier in the
decade, it had been working on environmental strength to eliminate formaldehyde in its furniture and to ensure that it would not sell furniture made from woods that came from forests
with a high conservation value (Bartlett et al, 2006). But the issue with child labor was two-fold. Should IKEA try to
work through the issue by dealing directly with suppliers? Or was it better of stepping back and letting Rugmark, an organization of producers and others, who believed that rugs should
have a stamp indicating that it was not anufactured through child labor. What was further complicating the issue was that an aggressive German TV documentary had broken the news that
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