Essay on Corporate Social Responsibility for Ikea - 965 Words

According, to the European Commission (2013), Corporate Social Responsibility and competitiveness link in the way that it brings ‘benefits in terms of risk management, cost savings and access to capital’ (European Commission, 2013). However Milton Freidman (1970) defines CSR within his essay in the New York Times as ‘The Social Responsibility of Business Is to Increase Its Profits’. He also states that businesses such as IKEA should ‘make as much money as possible, while conforming to the basic rules of society, both those embodied in the law and those embodied in ethical custom’ (May et al., 2007). It is evidenced that Friedman’s definition has conflicted with (Kotler and Lee, 2005) who delineate CSR as ‘commitment to improve well-being†¦show more content†¦Therefore it reveals that as a substitute for connecting relationships with smaller suppliers, IKEA actively engages and maintains long-term working relationships with their diverse suppliers. It is made clear that IKEA centres its focus on purchasing from outside (Anderson and Larsen, 2009). Assisting suppliers helps motivate them whilst becoming more responsible for ‘people and the environment’ (Inter IKEA Systems B.V, 2012g). CSR can have positive effects upon IKEA (Wang, 2008) in terms of stakeholders needs being satisfied and the public believing in the company due to environmentally friendly treatment. These factors will help IKEA differentiate from Argos and BQ. Blowfield and Murray (2008) mention that the increase in CSR public awareness, has led to businesses understanding that CSR plays a key role in their overall strategy and growth. Consequently, in order to strengthen the supplier working relationship, IKEA has transformed from demanding ‘a certain level of quality, service, price and environmental and social responsibility’ to cultivating these factors (Anderson and Larsen, 2009). The benefit of the transformational change for IKEA is that cost savings are attained and there is appropriate conditions to help produce proficiently. The IKEA Way delineates what supplier’s expectations are of IKEA and vice versa in terms of the environment, child labour and working conditions (Anderson andShow MoreRelatedSustainability and Corporate Social Responsibility at IKEA928 Words   |  4 Pagesinfluenced by the demands of customers and stakeholders. The business approach and corporate philosophy of an organization is easily altered due to economic pressures, technological improvement and stakeholder needs and demands. Going green or being eco-friendly is one such demand. IKEA is among the top sustainability leaders in the Scandinavian region. 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