IKEA Business Ethics Dilemma

Case Study
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IKEA is an international home retailer dealing with diverse customer target. In this company, ethical problems arise when a man's assignment forces him to emphasize a single job objective--say, maintaining the profit margin on a particular product. But suppose that in order to meet this objective his only alternative is to sacrifice quality.


Thus, the main dilemma is how to respond to consumer's social demands and expectations and meet social responsibility in marketing.
For IKEA, consumer citizens are pressuring business to achieve higher levels of social and ethical responsibility. Why should corporations, and especially marketers, respond to these new demands Part of the answer lies in business concern with the "threat" of more governmental regulation. This is the argument which goes, "If we don't, government will" (Singer 12). But part of the reason why business is moving to higher levels of social performance is to be found in consideration of the ethics of the situation. Socially responsible behavior on the part of the firm can be justified by standards of rightness as well as of economics and the law. It may be sound business practice, as well as morally right, for a marketer to attempt to meet socially responsible performance standards. The pressures imply the development of rules and standards by which business actions may be judged as "right" or "wrong". In other words, ethical decisions under free enterprise are "moral decisions", impelled by social sanctions, but modified by economics and environmental requirements (Velasquez 45). ...
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