Abstract

The case discusses the environmental ethics of the world’s largest furniture retailer, IKEA, and the various measures the company took to make a positive impact on the environment. The Sweden-based company took measures to ensure that the materials it used were sustainably sourced and the labor it employed met international labor regulations. Apart from improving its operations, IKEA, in 2000, launched a suppliers’ code of conduct, the ‘IKEA Way on Purchasing Products, Materials, and Services (IWAY)’. Under this, the suppliers were required to comply with applicable laws and regulations related to environmental protection and thereby create a positive impact on the environment.

Learning Objectives

The case is structured to achieve the following Learning Objectives:

• Discuss the issues and challenges for a company on the environmental ethics front.
• Understand the significance of environmental ethics for a company like IKEA.
• Analyze the IWAY of IKEA.

Keywords

Environmental ethics, Business ethics, corporate social responsibility, Code of conduct, Supply chain, IWAY