StudentShare solutions
Triangle menu

IKEA Business Ethics Dilemma - Case Study Example

Nobody downloaded yet

Extract of sample
IKEA Business Ethics Dilemma

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). The growing professionalism in marketing is also stimulating the development and acceptance of pervasive "socially conscious" standards of ethics. Some insights into the changing social and ethical responsibilities of marketing are explored (O'Neill & Hern 129; IKEA Home Page 2008).
In IKEA, expenditure of time and resources on such issues is still regarded by some managers as wasteful or as time spent on peripheral issues. However, allocating resources to such issues is no longer a matter of option. These questions are not on the periphery of corporate planning, but an inescapable part of corporate planning and concern. The partial answers existing in accounting-economics terms do not satisfy growing concern with the corporation as a means to a social end--improving the quality of life. The quality of life issue is the major problem confronting business now (Singer 17). Meeting the issue will require management commitment and time, will be costly, and frustrating, but necessary. Corporate presidents can expect to spend more time on the quality of life issues--on consumer/environmental and social concerns--than their predecessors. Management's new task is to balance traditional profit and rate of returns on investment criteria with new definitions of social costs, social purpose, and social conscience (O'Neill & Hern 129).
The starting point for socioindustrial progress analysis is not to be found in corporate traditions or corporate history or even industrial history. The starting point is to relate social progress of the corporation to national goals and to the social indicators being developed to evaluate the attainment of these goals (Velasquez 32). This approach sounds like socialism to some. It is not. Social progress was once considered to be a national by-product of economic progress. Society believed that social progress was achieved through continued economic growth and progress. The accumulation of material wealth and affluence is no longer automatically equated with social progress by a growing number of influential Americans. Public ...Show more


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…
Author : rohanliliane
IKEA Business Ethics Dilemma essay example
Read Text Preview
Save Your Time for More Important Things
Let us write or edit the case study on your topic
"IKEA Business Ethics Dilemma"
with a personal 20% discount.
Grab the best paper

Check these samples - they also fit your topic

Business Ethics
Union Carbide: Assault on the Ohio Valley The valley is located between West Virginia and Ohio. It is found in an industrialized location and is surrounded by the chemical and metal plants. The valley experiences a lot of pollution problems that is as a result of its location and the surrounding environment.
5 pages (1250 words) Case Study
Business Ethics
Name Institution Course Tutor Date Business ethics Introduction In philosophy, there are three braches of ethics one of them being applied ethics. It is under applied ethics where business ethics is classified. Business ethics evaluate the ethical principles that are relevant in the business world.
5 pages (1250 words) Case Study
Business strategy IKEA group
This home furnishings retailer owes its success to its low priced and wide product range, smart purchasing and distribution activities and retail function (Nattrass and Altomare, 1999). Based on the history of IKEA given in the Appendices section, this report aims to evaluate the business strategies of IKEA.
8 pages (2000 words) Case Study
Now what method could they possibly use to do such a thing The answer to that is motivation. We define motivation as the process that counts for an individual's intensity, direction, and persistence of effort toward attaining a goal. (The IKEA Way of Motivation 2004) Motivation actually happens when a being encounters a certain situation or instance that triggers his/her drive to do something.
8 pages (2000 words) Case Study
External factors relatively more influence IKEA’s marketing plan because company is operating in a various diverse cultures. Moreover, the internal factors are under the control of IKEA whereas,
1 pages (250 words) Case Study
Based on consumer feedback, IKEA introduced American style furniture with core IKEA values such as easy-to-assemble, portable etc. Secondly, co-workers at IKEA stores are trained in such a way that they provide complete knowledge to
1 pages (250 words) Case Study
As mentioned in the case, IKEA’s customers are frugal or cost-conscious who would want to have more additional value for their money by choosing stylish home furnishings and
1 pages (250 words) Case Study
However, Janet was approached by Sy Abell who has set three key conditions for establishing cooperation with the Daily News: information on Godowskis expenditures and schedules, guaranteed page positions, and a 33 percent discount off
5 pages (1250 words) Case Study
Business Ethics
The advantage of disclosing such information is for transparency so that everyone in the committee is aware of the necessary steps that are being taken in the
2 pages (500 words) Case Study
Case Study: IKEA Regrets Cutting Women From Saudi Ad
All the features of the catalogues were similar except for the absence of a womans image. The Swedish version had a woman wearing a pajama standing next to a child in a family photo. The Saudi version did not have the woman beside the child who is brushing his teeth. The
3 pages (750 words) Case Study
Hire a pro to write
a paper under your requirements!
Win a special DISCOUNT!
Put in your e-mail and click the button with your lucky finger
Your email
Comments (0)
Click to create a comment
Contact Us