IKEA’s Ethical Procurement Practices



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Introduction

In February 2014, the Forest Stewardship Council (FSC) withdrew certification to Swedwood Forestry, a subsidiary of Swedish furniture retailer IKEA . FSC alleged that in Russia’s Karelia forests, IKEA was harvesting old growth trees in regions that were protected. According to the FSC representative, “IKEA’s departure from this part of Karelia, with its high concentration of old natural forest, clearly shows that it is not ecologically, socially, or economically sustainable to harvest old-growth forest, which are a non-renewable resource.”

IKEA, the world’s largest furniture retailer, specialized in stylish but inexpensive furniture in Scandinavian designs. The majority of IKEA furniture was made from wood, which the company sourced from different countries. IKEA’s business had earlier involved the large-scale cutting of trees. There was also a widespread use of chemicals in the manufacture of its furniture.

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In the mid-1980s, when IKEA’s furniture products were tested and found to be made of particle boards from which there were excessive formaldehyde emissions, the company was the target of a lot of negative publicity. However, this proved to be a turning point for the company. IKEA started working toward better procurement practices, which led to the launch of environmental and social standards, ‘IWAY’, in 2000. IWAY was an attempt by the company to improve its operations and processes and minimize the negative impact of its activities on society and the environment.....

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