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Better Cotton Initiative at IKEA: Bringing Sustainability into the Textile Supply Chain
Ikea and its Social and Environmental Practices
The history of IKEA can be traced back to the 1940s. In 1943, IKEA was founded by 17-year-old Ingvar Kamprad (Kamprad) with money he received from his father for doing well in his studies. Kamprad came up with the name IKEA by combining the first letters of his name (Ingvar Kamprad) with the first letters of the farm and village in which he grew up (Elmtaryd and Agunnaryd). Over the years, IKEA became the world’s largest furniture retailer through organic growth and became renowned for its contemporary yet affordable furniture. In each new market, the company replicated its store concept and culture. In every store, IKEA maintained the same layout, products, and shopping experience. However, in some markets like in the US, some variation was required. IKEA’s culture was deeply rooted in Kamprad’s vision and thoughts. Kamprad was known for his frugal habits and his approach encouraged his co-workers to ensure minimal wastage and cost cutting at every level. |
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IKEA’s awareness about environmental activities can be traced back to the mid-1980s when the then Denmark government passed a new law to regulate the maximum permissible emissions from formaldehyde off-gassing in particle boards . Some of IKEA’s particle board furniture products were found to have a formaldehyde level that was higher than the standard specified by the Danish environmental law. IKEA was eventually sued and a fine was levied on it. While sales in Denmark declined by 20%, the company’s image also suffered significantly, given the extensive use of particle board in IKEA furniture products.
