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Essay On IKEA’s Response to Global Challenges

Abstract

The contemporary globalized environment poses numerous challenges for business to achieve success. In this regard, various dimensions of globalization become more and more entwined and companies need to adapt to these changes. One of the most complex aspects is the socio-cultural dimension which requires systematic and multi-stakeholder involvement. The aim of this paper is to address the case of IKEA and its approach to resolving the issue of child labor used by its suppliers in India. Consequently, the rationale for IKEA’s approach is outlined with further implications for the company and global businesses in general. IKEA’s case demonstrates the new trends in globalization and business conduct which require multi-dimensional cooperation towards the sustainable development as a precondition for the successful business performance of a company. From the perspective of the local population, the primary benefit is long-term commitments of the international corporations and the consequent stability of the local socio-cultural development and economic growth.
Key words: IKEA, child labor, globalization, corporate responsibility.

IKEA’s Response to Global Challenges

In the contemporary globalized and internationalized world, of the company to achieve success it has to address numerous issues except the quality and cost-efficiency of its production. To achieve success, a company has to consider diverse political and cultural aspects of its business conduct and manufacturing of the final products. Although this concern becomes essential in the contemporary business environment, it can be incredibly challenging to fulfill monitoring across various branches located in around the word. On the other hand, in order to preserve a successful and continuous profile, the company has to make sure that its profile is integral across all branches and cooperation with suppliers corresponds to its profile and values. The aim of this paper is to address the issues of globalization and continuity of company’s profile in the example of IKEA and its child labor issue in India.
Although globalization poses numerous economic benefits for a business to expand, optimize its manufacturing capacities in the third world, and reduce cost of the final product, globalization also has numerous threats and challenges that company has to deal with and develop a consistent approach within its strategy (Smith, 2010). In this regard, a company also has to address such dimensions of globalization as political, cultural and ecological. In other words, having a strong public profile in the country of origin is no longer enough for one’s success. The company also has to demonstrate the consistency of its public profile on the global scale. In other words, the company has to abide by the rules and public perceptions of the country of its origin or according to the international standards also in other countries in order not to damage its image (Spinello, 2014).

IKEA had a negative experience of being criticized for some of its carpet supplier from India using child labor in carpets production. The company faced with cultural and political-legal challenges posed by globalization. Moreover, unlike nowadays, when a company has various cases and strategies to follow in resolving such issues, IKEA faced the problem when the issue of child labor was quite new in the business environment and consequent options for its handling were limited (Smith, 2010). In this regard, the available options branch manager Marianna Barner could choose from included cancelling contract with suppliers, withdrawing from the market or addressing the issue in some way. The first two options would mean financial losses, while the last one had very little certainty in its application (Spinello, 2014). On the other hand, the issue could not be ignored since media programs on the subject had already damaged company’s image before.

The primary threat of such issues on the global scale is that the national image of the company can be easily damaged and its core values challenged. For IKEA that placed equal access to its products across various categories of society, equality and humanness were the core of its philosophy. Moreover, the relationship with suppliers was based on the crucial principle of using sources in an unconventional way. Thus, giving up on suppliers would have been damage to that principle and could result in further deterioration of relations with other existing suppliers (Vogel, 2006).

The most functional resolution of the issue is to preserve company’s presence in the country and continue doing business but in a new way. In this regard, the company would have to develop its own way of dealing with the matter in accordance with the international law and company’s concept and values. Barner did the right choice of getting involved with the national and international organizations dealing with the issue of child labor. This gave her and the company the relevant knowledge of the issue and related aspects such as age differences of children allowed working in different countries, local legislature, a relationship between child labor and schooling (Spinello, 2014). In this context, IKEA created a precedent how other companies have to deal with similar issues – promoting the higher standards through cooperation with the local NGOs, international organizations and local suppliers:

organization promoting the well-being of children. Together with UNICEF experts,
local governments and NGOs, IKEA started an ambitious and large-scale project
aimed at improving education, recruiting for schools and raising awareness among
parents that education is important for their children. In order to decrease
dependency on child labor, a microcredit program was started mainly aimed at
strengthening the economic position of women” (Jeurissen, 2007, p. 135).
Moreover, as part of this response, the company introduced zero-tolerance policy regarding suppliers using child labor. For these purposes, monitoring workshops with suppliers in the target countries were introduced and strict rules were imposed. If the instance of child labor was found and not resolved, IKEA would cancel a contract with its supplier and would not conduct business with the anymore (Vogel, 2006).

IKEA’s solution of the issue is incredibly functional in dealing with various dimensions of globalization. It is three-fold in its nature. First of all, the company preserved its image and projected its values on the global scale. Secondly, it demonstrated the Western public that it follows the same standards in all countries were its conducts business, thus the company kept its customers. Finally, IKEA as an international company demonstrated its long-term commitments in the various foreign markets and moreover responsibilities with the local communities (Smith, 2010).

The last aspect is particularly essential since there is a tendency in the global business to demonstrate long-term commitments to the local communities rather than simple gaining profit schemes. In this regard, international companies accept the tendency of merging of different global dimensions and corporate responsibility in terms of development of the local communities (Vogel, 2006). The main benefit for the companies is that they build a functional relationship with the local people and also contribute to the improvement of the sustainable development of these communities. In a long-term perspective, these communities will become more functional labor force with desired skills and also future consumers of the companies’ products.

Stakeholder dialogue and co-operation are important ways for business to shape

their social responsibility, since businesses are often partially responsible for causing
a social problem. However, business cannot solve problems by themselves they did
not cause by themselves, so it is important to seek collaboration with others. An
important mechanism within these partnerships is that different parties can mutually
influence the conditions of their performance” (Jeurissen, 2007, p. 135).
Thus, the essence of IKEA’s response to the child labor issue with its suppliers was to take on board as many stakeholders as possible in order to address the issue in the most systematic and functional manner. A similar approach was taken by Marriott International that placed the cultural differences and traditions in the heart of its global strategy (Spinello, 2014). In this regard, cooperation with various stakeholders aimed at improvement of life through work with Marriott International made it one of the most desired working places in the hospitality business (Vogel, 2006).
Overall, from all mentioned above it can be concluded that with the strengthening of global trends, companies have to pay more attention to their socio-cultural commitments in the communities they do business in. IKEA’s approach was in involving numerous stakeholders and treating the issue in its systematic and contextual complexity. IKEA’s approach became a precedent in the field of child labor and an example to follow by many international companies.

References

Jeurissen, R. (2007). Ethics & Business. Assen: Royal Van Gorcum.
Smith, C. (2010). Global Challenges in responsible Business. Cambridge: Cambridge
Spinello, R. (2014). Global Capitalism, Culture, and Ethics. New York, NY: Routledge.
Vogel, D. (2006). The Market for Virtue: The Potential and Limitations of Corporate Social
responsibility. Washington, DC: The Brookings Institution.

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Good Case Study On Liabilities And Investments

Debt securities transfer to profit or losses are proportioned to cost of bonuses in debt security management. Bonus payments will reduce significantly in this scenario since there is a decline in fair value of the assets in the portfolio. The variability relating to bonus declarations, also including shareholder returns, is usually equivalent to that of the asset return. When practicing companies tend to smooth declaration of bonuses (Vanderhoof & Altman, 2000). A company with huge and varied estates can chose the degree of smoothing bonus declarations. It depends on various considerations such as marketing among others- not only financial.
In

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Free Auditing Case Study Sample

If Lee had not been seen taking employees out in a limousine, how else could she have been caught?

If Lee had not been seen taking employees out in a limousine, she would have been caught by the audit of balances. Verification of claims through external sources could easily lead to the detection of fraud in this case. Furthermore, mailing addresses of three doctors were same which could have created the suspicion for the auditor. The investigation of these mailing addresses would lead to Martha’s husband's address from where she could have easily be caught after further investigations.
The auditor should investigate the details of doctors to whom the claims were paid by the company. It could

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Good Sowk 503 – Summer 2015 Case Study Example

Quiz 2

1 While Victor was a typical boy in Mexico, his move to the United States changed him. While he once thrived in school and sports, he has become the class clown, prejudiced towards other colors, and combative. This rather extreme and sudden change can be attributed to classical conditioning.
Classical conditioning is learning by association (Changingminds.org, 2015). For instance, a rat can be taught to avoid sweet tasting liquid if after each time they drink the liquid they are injected with something that makes them sick (Changingminds.org, 2015). They learn to associate being sick with the sweet liquid, and

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Sample Case Study On Google In China

1. How does Google’s mission drive strategy at the company?
Google’s mission focuses on organization information around the world and making it useful and acceptable. This mission has helped Google to drive its strategy by coming up with a search engine through which people are able to get all the information they require in the web. In so doing, Google is able to get profits especially when advertisers use the search engine as they pay per click.
2. Is Google’s stance towards internet search in China consistent with its mission?
Yes, I believe that the stance

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Essay On Legal Authority During Public Health Disaster

Disasters most commonly elicit the response of city, local, state, and federal aid agencies to meet the mitigation of destruction during various phases of an emergency event. Public health legal authority, during a hazardous substance discharge, may call for both public and private agency involvement. Thrusting personnel and materials in the area must operate under the auspices of inter-jurisdictional protocol and legal authority. The objectives in this written exercise are to alert the learner, in anticipation of future professional behavior, about gaining an understanding for legal protocols in public health/hazardous emergencies while maintaining the highest levels of public safety during a disastrous event – involving dangerous substance discharges. In an effort to explore questions pertaining to the assigned case study, this essay seeks to posit descriptions, and explanations for procedural legal authorities in an emergency response situation.

Background: Question 1 & 2

At the outset it is important to present a brief overview of the definition of law, in matters of public health authorizations and preparedness. Kamoie et al. (2008) states that law can be defined “as a rule of conduct derived from federal or state constitutions, statutes, local laws, judicial opinions, administrative rules and regulations, international codes, or other pronouncements by entities authorized to prescribe conduct in a legally binding manner” (p. 23). In the event of a mass-casualty bio-chemical event a Governor can declare an emergency under the legal authority of health agency directives, for types comprising “natural disaster,” or those associated with public health disease/emergencies, according to a document Fact Sheet published by The Association of State and Territorial Health Officials (Emergency Declarations, Authorities”). Since according to Kamoie et al. (2008) law is a key component of the legal public health core.

So as the situation warrants, the Governor may declare such given an assessment of the dire urgency in bio-chemical type of disaster. Although, under the Public Health Service (PHS) Act the Feds may establish such declaration. The criteria and procedures for requesting emergency response aid from state/local jurisdictions obviously varies from region to region. However, the general process allows the Governor to: (a) declare the status of emergency for a specific period of time, (b) act within state rules/regulations, and (c) coordinate/request help from neighboring states usually under authority of federal agencies gathering logistical, financial, and “technical assistance” (“Emergency Declarations, Authorities”). The extent of help and exact funding from federal government, must be coordinated.

October 1, Train Derailment: Questions 3 & 4

When multiple jurisdictions are affected by a disaster of the burgeoning greenish-yellow toxic chem-cloud formations (from the train wreck), communications are the key to releasing authorities. Inevitably, the CDC will be involved at the federal level. But as Kamoie et al. (2008) note, “at the state level, the primary legal authority to respond to emergencies has been the police power,” to act as arms of the state to regulate protections for “the health, safety, and welfare of citizens” (p. 24). This might be viewed as a first-line of immediate security. Of course, common sense dictates that some of the key legal concerns regarding first responders and volunteers, would be their safety and legal qualifications. But, just as the case of 9/11 demonstrated, first responders at the local level are on the scene initially. In critical ways, they are the key link to administrating crucial communications to multi-jurisdictional authorities and federal agencies.

The local sheriff’s office will most likely coordinate the police powers and localized actions of authority to secure the area from onlookers, and interested panicked people from further clogging up the access pathways to the areas immediately affected. In coordination of HAZMAT teams, in consideration of the gas plumes quickly proliferating and spreading, a series of communications systems will be implemented, with local Fire Department and local Public Works Department. As demonstrated in a real-life case as documented by the National Transportation Safety Board (NTSB), in a similar train accident, fire, “heat, smoke, and fumes had restricted access to the tunnel for several days” (“Railroad Accident Brief, 2004, p. 1). The conditions involved a similar flooding, with multiple millions of gallons of water having burst from a water main. As in the case pertaining to our case study question, the situation cited in this Railroad Accident Brief which occurred in Baltimore, Maryland, the train of course was in motion at the time of derailment, having had “eight fully loaded tank cars containing hazardous materials” – all of which were “regulated by the U.S. Department of Transportation (DOT)” (“Railroad Accident Brief, 2004, p. 1). As indicated in the initial paragraph of this Question-Section, communications in these types of public health emergencies are critical. Chief dispatchers and communication centers necessitate a variety of coordinated responses including: site evaluations, assessment of toxins, analysis of potential for explosions, prevention of further damage/injuries, and charting clear legal permissions for authorizations to act.

October 1, Health Consequences at Valley High School: Questions 5 & 6

Competencies and responses are at urgency levels when students begin to experience symptoms of toxic poisoning, especially with maximal exposure to chemical contamination from the nearby train derailment. Given the factor that deaths have already ensued, with a plethora of 9-11 calls to the local hospital, obviously the situation calls for immediate action. The Governor must proceed along the proper criteria for declaration of a state of emergency in the area specifically constituting a public health emergency. The actual local procedures for the Governor may demonstrate an urgent approval by the legislative body and/or State executive officers (“Emergency Declarations, Authorities”). Also, within the rubric of the situation it may additionally be necessary to declare an emergency of several types, in the areas of both public health and disaster depending upon how that particular State jurisdiction is established to respond.
What constitutes a public health emergency? According to federal authorities, a public health emergency is defined by the statute under portion 319 of the Public Health Service (PHS) Act as aforementioned. The situation is described as involving disease or any type of urgent public health disorder, which may also include “significant outbreaks of infectious disease or bioterrorist attacks” (“Public Health Emergency Declaration,” 2015). The federal government extensively lists all such examples which may include, but not be limited to, tornadoes, floods, flu outbreaks, hurricanes, or anything threatening to spread contaminants of disease or toxins.

Mutual aid agreements can be used both during an absent an emergency declaration, but smartly responding to the situation within common-sense legal awareness. In the clear absence of an officially authorized emergency declaration, there are options for improvement of legal competencies. In a scholarly journal article on this aspect, Gebbie et al. (2008) that four key issues may outline a framework. Authors Gebbie et al. (2008) explain that the first such area considers an expansion of sectors requiring “competency in public health law and public health legal preparedness” (p. 53). In other words, since legal ramifications can be complex, as well as the involvement of professionals in critical public health roles, each sector of stakeholders should have identifiable competencies. For example, in the case of the people actually dying within four hours of the train accident, the National Guard may need to exercise evacuation at some point, and the CDC and Red Cross may need to exercise their organizational responses. Therefore, mutual aid agreements can be used and applied in the absence of a declared state of emergency, by adhering to local laws so deemed enforceable on the local or State level on the basis and scope of best practices under the locally deemed jurisdictional statutes. Use of all readily available assessment tools, diagnoses, legal/police protections, and quarantines so available must be coordinated by such mutual aid agreements.

October 1, Further Information: Question 7a, 7b, & 7c

At this point, it is understood that the Fire Chief himself has been nearly overwhelmed by the fumes after arrival on the scene. It is also clear at this juncture that communications have been impaired. The legal and operational considerations which influence the decision to call for an evacuation is due to the ‘Red-Alert’ situation. In the case of the nursing home facility being unable to move their elderly for 24 hours, demands that communications seek another immediate route. Since the disaster has, thus far, rendered contamination covering two states an emergency outreach utilizing the communications system (temporarily) of the third adjacent state – which has not, up to this point been affected. The legal and competencies factors should be considered when deciding upon a shelter-in-place for evacuation. For example, reliance upon the professional expertise of the nursing home director who insists that the elderly dwellers cannot be moved before 24 hours, demonstrates his practical certified competency in his field. Another key factor to be considered, is whether the third state (which has not been affected) can lend help with communications while possibly creating an emergency horizontal community of responders. Gebbie et al. (2008) suggest this method to “stimulate the development of best legal practices in public health emergency preparedness for specific communities and specific types of emergency events” (p. 55). Granted, it would have been wise to have formed the coalition before disaster struck, but an urgent cooperative effort is actually beneficial to the entire hinterland, so as to retard the spread of disaster.
The requirements of the elderly and other special-needs populations must be addressed in terms of speed, safety hazards in moving them, and the quality of evacuation location shelters once there. The requirements are addressed by assessing their numbers, and the availability of suitable evacuation locations, and competent medical or care teams, in addition to police protections – until the National Guard may be authorized and deployed. Choosing between mandatory or voluntary evacuation orders is a common-sense call. For example, in the case of Valley High School students, they need to be evacuated immediately – due to the severe and present implications of illness and because of their dangerous proximity in terms of exposure to fumes. Also, they are young and able-bodied enough to more quickly respond to evacuation than the elderly. An alternative measure may need to seal off the nursing home, and administer oxygen masks temporarily until they can be moved.

October 1, Review of Legal Authorities for Evacuation: Question 8

According to FEMA, on the federal level the agencies so designated enforce or authorize an evaluation or actual shelter-in-place order are as follows. FEMA, DHS, and the Departments of Agriculture, Commerce, Defense, Energy, Health & Human Services, Justice, Transportation, Veterans Affairs, GSA (General Service Administration), American Red Cross, and two others (“Mass Evacuation Index”). Obviously, if no emergency has been declared yet by the Governor in a dire situation the Red Cross may be the best road for immediate action.

October 1, Governor Requests Plan Review & Coordination: Questions 9 & 10

Continuity of the courts and justice system must infallibly and meticulously maintained, despite any emergency disaster situation of the most hazardous nature. The way such legal system of courts and jurisprudence are ensured is to follow the step-by-step guide plan which include typical goals of reducing disruptions to operations, continue court essential function, preserve rule of law, minimize loss of life, help secure preservation of equipment/facilities, and designate specified personnel so that clarity of who is in charge is maintained (“Continuity of Court”). State and national coalitions are in place.
In terms of supplying medical services on the spot, and preservation of an orderly atmosphere at medical care facilities in proximity of the disaster, team members of planning work together with the agency (such as The Red Cross, or FEMA). According to the same aforementioned report, they proceed to “identify possible service providers,” which for example may be the local Department of Health & Human Services division (p. 25). In this way, the logistics can be sufficiently ironed out and kept orderly, by assignment of obtaining additional staff, properly communication channels, and assurance of staff roles and competencies. Competencies are very important in this type of case. When one considers the seriousness of a train and multiple-vehicle derailment over water with leakage of dangerously toxic chemicals, that are airborne, timely coordination and competencies are key.
In fact, in the literature, one journal article breaks down the importance of improving competencies in a public health emergency situation while maintaining focus on legal protocols. Gebbie et al. (2008) indicate that “disseminating competency information to key target audiences,” and “improving measurement and evaluation of practice impact” are two vital areas which must be adamantly addressed in terms of framework for the agenda at hand during such emergency (p. 52). Obviously, when the communications were experiencing trouble in the immediate area of the emergency disaster outbreak in our case study, it was learned that to act quickly with flexibility by using the communication infrastructure of the unaffected state. Once that gap had been closed and control of the situation ensures a smooth recovery of communications, rescue and legal stakeholders may proceed. In this context, the law can function better and decide if isolation or quarantine stipulations must be implemented, in accordance with the right professionals and those authorized to play critical roles in the situation.

October 1, Mass Evacuation Order & Concern for Displaced Persons: Questions 11 & 12

At this point, the Emergency Operations Center along with the Governor has decided to order a mass evacuation. Given assistance by local law enforcement agencies, a house-to-house will be conducted. It is important to know the local legal requirements in the jurisdiction to apply public health emergency management care like food, water, shelter, and medical care. The CDC has mandates for the handling of such. Accordingly, the local government and personnel must abide by the Federal Code of Health and Safety Code Section 34070-34072. This mandates contractual provision for “recognized community organizations” to step up to the plate with provisional shelter, care, and food (“Guide for Local”). The coalition partnership works and functions cooperatively with the Red Cross to help citizens, until (or if) national disaster responders may be mobilized.
Local businesses need safety protections as well. Each local jurisdiction may have slightly differing guidelines in place, in terms of the minute details. But the CDC outlines in its guide the general procedures for ensuring that homes and businesses are safe particularly before allowance that people return home. Local law enforcement agencies and the Fire Department play key roles in assessing the situation, while the probability of federal troop intervention may be deployed to help, depending on governmental agreements in planning.

References

Association of State and Territorial Health Officials – ASTHO. (2015). Emergency Declarations and Authorities [Data file]. Retrieved from http://www.astho.org/Programs/Preparedness/Public-Health-Emergency-Law/Emergency-Authority-and-Immunity-Toolkit/Emergency-Declarations-and-Authorities-Fact-Sheet/
CDC.gov. (2015). A guide for local jurisdictions in care and shelter planning [Data file]. Retrieved from http://www.cdc.gov/nceh/ehs/Docs/Guide_for_Local_Jurisdictions_Care_and_Shelter_Planning.pdf
FEMA. (2015). Mass Evacuation Incident Index [Data file]. Retrieved from http://www.fema.gov/pdf/emergency/nrf/nrf_massevacuationincidentannex.pdf
Gebbie, K.M., Hodge, J.G., Meier, B.M., Barrett, D.H., Keith, P., Koo, D., & Winget, P. (2008). Improving Competencies for Public Health Emergency Legal Preparedness. Journal of Law, Medicine & Ethics, 3652-56. doi:10.1111/j.1748- 720X.2008.00261.x
Kamoie, B. Pestronk, R.M., Baldridge, P., Fidler, D., Devlin, L., Mensah, G.A., & Doney, M. (2008). Assessing Laws and Legal Authorities for Public Health Emergency Legal Preparedness. Journal of Law, Medicine & Ethics, 3623-27. doi:10.1111/j.1748- 720X.2008.00256.x
NCSC – National Center for State Courts. (2015). Continuity of Court Operations [Data file]. Retrieved from http://www.ncsc.org/~/media/Files/PDF/Services%20and%20Experts/Areas%20of%20expertise/Emergency%20Preparedness/toolkit.ashx
National Transportation Safety Board. (2004). Railroad Accident Brief [Data file]. Retrieved from http://www.ntsb.gov/investigations/AccidentReports/Reports/RAB0408.pdf
U.S. Department of Health and Human Services. (2015). Public Health Emergency Declaration [Data file]. Retrieved from http://www.phe.gov/Preparedness/legal/Pages/phedeclaration.aspx

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