Wednesday, November 11, 2020

International business structure and environment

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The IKEA structur.IKEA was founded by Ingvar Kamprad in 14. Since then, IKEA has expanded to include a number of home furnishings stores around the world.Inter IKEA Systems B.V. is the owner and franchisor of the IKEA concept. Irrespective of their ownership all IKEA retailers worldwide operate on a franchise basis.IKEA of Sweden AB is responsible for the entire IKEA product range, thereto commissioned by Inter IKEA Systems B.V.. All products in the IKEA range are distinguished by the label Design and Quality, IKEA of Sweden. The from Inter IKEA Systems B.V. independent IKEA Group includes not only most IKEA retailers, but also the product development centre IKEA


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iKEA and the environmen.IKEA has always tried to do more with less. This goes hand in hand with our environmental work - to use resources in an economical and careful way.Three cornerstones in IKEAs environmental wor.? Our cost consciousness and resourc.efficiency result in less usage of raw material and less waste and discharges. ? The extensive use of wood in our products. Wood is a Recyclable, biodegradable and renewable material and it is excellent from an environmental point of view.? Training and engaging our co-workers to work wit.environmental issues..Resource efficienc.One of the reasons why IKEAs prices are so competitiv.is that we always try to minimize costs. To keep costs lo.you have to be economical. We save on raw material.energy and other resources. As a consequence, we ofte.also reduce waste and discharges.At IKEA we develop the products ourselves, often in clos.co-operation with the supplier. This gives us th.opportunity to take all aspects of a products life int.consideration. From choice of raw material throug.production and distribution to end of use. Bein.economical when selecting raw material must be secon.nature for a product developer at IKEA. When possible.leftover material from one product is used in the makin.of another product..Forestr.A large proportion of the raw material IKEA uses in th.products is wood or wooden fiber. Wood is renewable.recyclable and biodegradable. It is a good material fro.an environmental point of view, provided that i.originates from well-managed forests..IKEA demands that the wood in our solid wood product.does not originate from intact natural forests, unless the.are certified. Our long-term goal is to source all wood i.the IKEA range from verified well-managed forests, tha.is, forests that have been certified according to a fores.management standard recognized by IKEA..Training and engaging our co-worker.Committed co-workers are crucial to get a driving force i.the environmental work. Throughout the IKEA Group.there are environmental co-ordinators working i.different ways to increase environmental awareness b.training and informing their colleagues on a continuou.basis..More informatio.Do you want to know more about how IKEA works with th.environment.In the brochure Environmental and social issues you ca.read abou.? Environmental and social responsibilit.? Environmental adaptation of products and material.? Forestr.? Suppliers - environmental work, social and workin.condition.? Distribution - transport and warehousin.? The environmental work at our store.Presidents messag.Can you do business while being a good business.The role of business is changing. To provide jobs, creat.profits and pay taxes is no longer enough. Both ou.customers and co-workers expect more from us. The.expect us also to take an active role in influencing socia.and environmental issues wherever we are present. A.often asked question is - is it possible to make traditiona.business objectives and social and environmenta.responsibility work together for the benefit of al.stakeholders? Or is there a conflict between the two?.We believe they can work very well together. Done in .sensible way, social and environmental work is good fo.business. It is good for business because our customer.will feel reassured that they are doing business with .company that shares their views and values. And it i.good for business because it can also support cos.efficiency. Using resources and raw material efficiently.saving energy, improving working conditions at ou.suppliers and through that getting more motivate.people, will have a positive effect on costs and therefor.support our business objectives..Being successful with social and environmental work i.not an easy thing. It takes a dedicated organization. I.takes clear goals, strategies, time plans an.responsibilities. And above all, it takes a vision to create .better everyday life for the many people. We have .business idea based on low prices and cost-efficiency.And we have values that support a humble, cos.conscious and humanistic way of behaving. All this is .real strength in our work with social and environmenta.responsibility..We realize that we are only in the beginning, and w.have a long way to go before our work is a natura.integrated part of our day to day business..Anders Dahlvi.President of the IKEA Grou.SOCIAL AND ENVIRONMENTAL RESPONSIBILIT.Play for life.Help children in Angola and Uganda.Support UNICEF in helping affected children to recove.from armed conflicts in Angola and Uganda. For ever.IKEA PS BRUM soft toy you buy, UNICEF receives $.Our goal is to raise a total of $400,000.00 through th.sales of IKEA PS BRUM world-wide..In Angola, the IKEA contribution will get to some 80,00.children through a non-formal education effort with mai.focus on learning by playing.In northern Uganda, civil conflicts have torn the peopl.for almost two decades. The IKEA funds will suppor.play-based programs for at-risk teenagers to strengthe.the awareness about the threat of HIV/AIDS.Every child has the right to playtime in a saf.environment. This has been stated in the mos.internationally adopted treaty in the history - the 1.Convention on the Rights of the Child. The right to pla.may seem as a natural thing, but millions of children ar.deprived of this vital element due to conflicts, disease.and exploitation..IKEA has supported UNICEF programmes around th.world for more than 10 years, including recen.contributions to support immunisation and chil.protection programmes in Northern India.The IKEA Group is concentrating its corporat.contributions on a few selected causes. These ar.primarily environmental projects, projects aimed a.the prevention of child labour and initiatives t.support children and their opportunities for learnin.and development.We have established relationships with a small numbe.of recognized international and national organizations.The projects that IKEA contributes to are linked to ou.business and are therefore as close as possible to ou.suppliers.Childrens right.Child labor is an unacceptable part of todays reality.This situation exists in some of the countries where IKE.purchases. It is a complex problem that can be solve.only by addressing the root causes of child labor.together with the broad engagement of different partie.in society..We want our activities to be in the best interests of th.child. The ambition is to make sure that no child labor i.involved in the manufacturing of IKEA products. Thi.includes all our suppliers worldwide, as well as thei.sub-contractors. Providing quality education is one wa.of preventing child labor.he IKEA Group supports the following project.In Indi.· In collaboration with UNICEF, United Nations Children.Fund, IKEA has initiated community developmen.projects in the northern state of Uttar Pradesh, India. Th.objective is to prevent child labor. The projects cover.more than 500 villages with a population o.approximately 1. million people. Alternative Learnin.Centres for children are set up to help them join th.formal school system. Approximately 54,000 childre.benefit directly from the project. In addition, UNICEF i.working via local NGOs and in co-operation with loca.authorities to support women in their efforts to establis.self-help groups. These measures help women to gai.access to micro credit schemes and find alternativ.income-generating opportunities.· IKEA has supported CREDA, a local non-governmenta.organization in India. The two-year project started i.September 000 and covered a geographic area of .villages. Focus was on providing educationa.opportunities for young girls. In addition, 500 adul.women were given basic literacy education. The projec.was implemented by UNDP, United Nations Developmen.Programme..· Together with WHO, World Health Organization an.UNICEF, IKEA has initiated a vaccination project in Indi.starting in April 00. The objective is to provid.immunization to infants between 0-1 years of age agains.the six most common childhood diseases. All pregnan.women will also be vaccinated with the tetanus toxoid. .total of 0,000 women and children will be immunized.The project covers ,000 villages in India, some wher.IKEA already has an ongoing UNICEF project.In Kosov.· Since 000, IKEA is supporting the International Sav.the Children Alliance to re-establish schooling for th.children in the Western part of Kosovo after the war i.1. The main aim is to re-build 4 schools, reconstruc.and repair classrooms, provide support to schools wit.pre-school classes and teacher training. This helps t.restore normality in the lives of thousands of children.· IKEA is supporting UNICEF for the repair of eight pilo.schools in Kosovo benefiting some 8,000 pupils. Th.project, which started in 000, also includes ne.equipment, teaching materials and the improvement o.water supplies and sanitary conditions. An important par.of the project is a special teacher training, building o.interactive teaching with the focus being on childre.and their enthusiasm. The teachers will then train othe.colleagues to introduce the methods in 5 additiona.schools around the province.Forestry project.A substantial part of the raw material for IKEAs product.is wood or wood fibers. This is why we want the forest.from where we take our raw material, to be managed in .responsible way. The long-term goal is to source all woo.in the IKEA products from verified well-managed forests.For more information on how we work with the forestr.issue, see IKEA and the environment.The IKEA Group contributes to the following fores.project.· Since 1, IKEA co-operates with Global Fores.Watch, an initiative of WRI, World Resources Institute.The project objective is to map the worlds remainin.intact natural forests. Knowledge about the locations o.intact natural forests, relative to logging operations, i.essential to be able to save these forests..· Since 001, IKEA is funding a scholarship for student.from Russia, Poland, Latvia, Estonia and Lithuania t.study forestry in Sweden, at the Swedish University o.Agricultural Science for one year. Approximately .students annually, for a five-year period will receive th.scholarship.· The foundation Sow a Seed, started by IKEA in 18.aims to rehabilitate 14,000 hectares of degraded rai.forest in the Malaysian State of Sabah. The project.objective is enrichment planting of native tree specie.and research on how to best rehabilitate a rainforest... IKEA and WWF (World Wide Fund for Nature) hav.joined forces to promote responsible forestry. I.co-operation, IKEA and WWF are carrying out a series o.frest projects that will contribute to the development o.global toolkits on forestry issues and promote responsibl.forestry in priority regions, i.e. in Russia, China, Estonia.Latvia, Lithuania, Romania and Bulgaria.THE IKEA WA.he IKEA way on purchasing home furnishing product.Key issues such as working conditions an.environmental care among our suppliers are bein.targeted in IKEAs code of conduct, The IKEA Way o.Purchasing Home Furnishing Products.At IKEA, we want to offer low prices for well-designe.and functional home furnishing products of good quality.manufactured under acceptable working conditions b.suppliers that care for the environment.We have outlined our views in the document The IKE.Way on Purchasing Home Furnishing Products. Thi.document is our code of conduct that states the minimu.demands expected of all IKEA suppliers. It defines IKEA.requirements regarding social and working conditions.child labor, environment and forestry.IKEA aims to build long-term relationships with supplier.that share our commitment to promote good practices.and who want to grow and develop together with IKEA.IKEA expects its suppliers to respect fundamental huma.rights, to treat their workforce fairly and with respect.Suppliers are also obligated to continuously striv.towards minimizing the environmental impact of thei.operations.The basic criteria are that our suppliers must follo.national laws and international conventions. The code o.conduct is based on the UN Declaration of Huma.Rights, 148, the ILO (International Labour Organization.Declaration on Fundamental Principles and Rights a.Work, 18 and the Rio Declaration on Sustainabl.Development, 1. IWAY standard.of Sweden AB and trading and wholesale companies. The IKEA Group activities are coordinated by IKEA Services AB in Sweden and IKEA Services B.V. in The Netherlands. The IKEA Group is owned by a charitable foundation in the Netherlands..


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