Corporate Social Responsibility in IKEA

I choose IKEA for my socially responsible company because they have a positive impact on the community, they have a good reputation and brand image which makes them unique. The brand is something to be created by a deep understanding of culture, traditions, fashion updates, the trend in market and demand in the market. An organization or firm, which fulfills the requirements of all the qualities of the market by using branding strategies, will stand first and will have a good name in the society. IKEA will stand as a good example. IKEA is a world-renowned company for furniture. Like all other international business, IKEA has challenges and dilemma that affect how IKEA approach the different condition of the business. Likewise, IKEA has some corporate social responsibility that makes IKEA more unique. The IKEA vision “to create a better everyday life for the many people” is at the heart of its business. They focus on funding home, health and for the education in the communities to support children's future.

IKEA has started the program called Circle of Prosperity for children’s better future. As stated by the founder, their mission is to “create a better everyday life for as many people as possible around the world” (Vilas 2017). They donate money for the poor people who can not afford money for their child’s education. They also donate 7.7 EUR for Brighter Lives for Refugees campaign, IKEA Foundation as an independent charitable body has donated EUR 1 to Save the Children for every soft toy sold in IKEA stores in November and December since 2003. IKEA enforces Supplier Code of Conduct that prohibits the use of child labor, the use of forced or bonded labor and discrimination at work. The Code of Conduct also requires the freedom of association for employees and the provision of a safe and healthy environment. Total donations by IKEA Foundation in 2014 equaled to EUR 104 million” (Dudovskiy 2017).

IKEA has dedicated to giving back to their community while being regarded by their customers and co-workers as a good neighbor and socially responsible company. They giving back the money as a donation to other to help their community. IKEA care for children’s better future and also refuges. IKEA has given lots of millions of dollars for the refuges. They choose to focus on social responsibility because it gives them a good brand image and also make their reputation good.

“Recruitment at IKEA did not seem to be an issue. The HR Department of IKEA receives about 7 CVs every day, and 200 every month, most of them sent by e-mail through the IKEA recruitment web page, which clearly facilitated the process for applicants. In addition, external channels such as Pole Employ and local partnerships with associations and schools are also used at times. For instance, IKEA is starting to develop partnerships with Business and Communication schools in the area of Lille”( IKEA Recruitment and Selection Process). Some of the benefits of corporate social responsibilities have on the company are that: it can have a positive impact on the community, it can improve reputation and brand image, it can create a consumer loyalty, it can impact the bottom line, and it can empower their employees. Some ways corporate social responsibility benefit employees are: it increased organizational citizenship behavior and improve employee relationship, it enhanced employee identification with the organization, it improves retention and organizational commitment, more attractive company culture to prospective employees, better employee engagement and performance, and it increased creativity.   

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