sustainability at ikea group pdf

The findings of this study are expected to guide industrial managers and experts on where to focus attention on achieving social sustainability in supply chains. It establishes the minimum requirements for environmental, social, and working condi-, , establishes primary compliances for all sup-. However, as, indicates, transparency extends beyond awareness to include reporting to and actively engaging stake-, are considered separate organisational concepts in business literature but, ) state that they are seamlessly intertwined to accomplish a firms, ). Linnenlueck, M.K., & Griffiths, A. Reverse logistics is a process in which a firm systematically accepts, signed to manage the flow of products or parts destined for remanufacturing, recycling, or disposal and to, take-back programme where customers can return cardboard packaging to the store for recycling, as well as furni-, ture take-back programmes where customers can bring unwanted furniture to their stores and IKEA works with. Sustainability, more commonly known as corporate social responsibility,is fluid and ever changing but it is consistently complicated, ... Sustainability, more commonly known as corporate social responsibility,is fluid and ever changing but it is consistently complicated [5]. and follow legal requirements for on-site incineration and landfill. Duurzaamheidsrapport 2013 ikea group (pdf) Duurzaamheidsrapport 2013 ikea group (pdf) Issuu company logo. A feature of the model is to incorporate performance of the SC relative to benchmark /target values and consider options to reduce gaps for improving overall sustainability performance of the business. Listen to the opinion of Steve Howard, Chief Sustainability Officer of IKEA Group, about the goal of becoming "forest positive" by 2020. 1714 0 obj <>stream 0 Learn more about our sustainable efforts including solar energy, water conservation, plastic reduction, social initiatives and more. IKEA is a model company that others can turn to as inspiration and model for positive change. Supply chain sustainability includes environmental, economic, and social dimensions. Corporate sustainability and organizational culture. In this way, stakeholders are linked together and become, : Sustainability is an integral part of SCM and an attempt to, the management of material, information and capital flows as well, the strategic, transparent integration and achieve-, s social, environmental and economic goals in the systemic coordination of key inter-, with core business practices such as procurement, logistics, knowledge manage-, ). IKEA. They are required to abide the UN Convention on, the Rights of the Child as well as national and international laws; this is applicable to IKEA, 11. Existing research insists that multiple pressure push organizations to navigate towards ‘eco design’, ‘green purchasing’ and ‘cooperation with customers’ leading to green supply chain management. Unternehmen befinden sich in einer strategisch wichtigen Position, um wirksame Änderungen herbeizuführen. Und Plastik durch Papier und Glas zu ersetzen, ist nicht immer umweltfreundlicher. Das Verpackungsaufkommen steigt stetig an. (2015). Organizations require a fundamental shift, ). In 2009, Greenpeace launched an aggressive campaign against Nestlé, accusing the organization of driving rainforest deforestation through its palm oil suppliers. 1. As evident through, the IKEA case study, an holistic approach to sustainability focussing on all three pillars, that integrate only one or two pillars (Brockhaus, Wolfgang, & Knemeyer, 2013; Morali & Searcy, increasing its marketshare and corporate growth IKEA maintained a strong economic position while focussing on, an overarching commitment to manage its supply chain by focussing on social and environmental sustainability, This research paper is organised as follows. IKEA Sustainability Report FY19 (PDF, 5.8 MB) At the same time, IKEA Group had adopted in 2012 a new sustainability strategy that focused the company's efforts on its entire value chain from its raw materials sourcing to the lifestyle of its end consumers. Gupta, S., & Palsule-Desai, O.D. was perceived as impossible (Håkansson & Waluszewski, European producers of high-quality printing paper, Svenska Cellulosa Aktiebolaget, successfully created a paper. Naturalizing sustainability in product development: A comparative analysis of. The specific components of IWAY Standards include fourteen, eral sections: Start-up Requirements, General Conditions, Environment, Chemicals, Waste, Fire Prevention, Health &, Safety, Housing, Wages & Benefits, Child Labour, Forced & Bonded Labour, Discrimination, Freedom of. SCM can be a difficult task for firms, but becomes even more challenging when coupled with sustainability goals, Sustainable Supply Chain Management (SSCM), incorporate it using the triple bottom line concept in the existing supply chain practices leads to study sustain-. The aim of this paper is to help to fill this gap by exploring how supply chain sustainability can be implemented and managed in these settings. � ���D0�$*@,�yKHpG �#@bI#�2����H��w�W� �q4 The results show that each of these two sub-concepts of knowledge transfer has different motivational and resultant mechanism. Using survey data of 518 UK manufacturing organisations, we found that larger organisations with greater access to resources and a strong supply chain orientation culture tend to place the most weight on supplier development programmes which in turn yield higher internal quality performance. chain represent the primary challenges of sustainability for contemporary corporations (Carter & Rogers, Sustainability also refers to all activities aimed at improving the social and environmental impacts of a com-, pany while maintaining the financial bottom line. After determining influencing factors (internal and external) and short-term (internal and external) and long-term outcomes (sustainability) of KMI, they are evaluated by 82 respondents from 74 Turkish manufacturing companies which are members of supply chains. To. IKEA. A dataset of 1,621 organizations allows the statistical comparison of these three models. They can provide integrated solutions across interconnected issues area such as economic, social, environmental, and security action. Dabei fehlt jedoch eine umfassende Strategie. It also includes forced and bonded labour where IKEA suppliers shall, not use forced, prison, bonded, or involuntary labour. IKEA is recognised for a strong corporate culture but the role of corporate, culture and the integration of SSCM are outside the scope of this case study. Though organisation specific, this case study contributes to academic literature on SSCM. ����}���ۂn�ˢ��L����B����o����f�����fҎ�z���7��es��E�0��?5��]Y��5�jӌ�>�L�mq �GІs��;�������M��W|1��Jޟ�j�/��(�ހjU�5�|i~�7yS�eNv��h7���� Although both firms have substantial experience working with sustainability and are role models, they chose very different strategies to integrate sustainability into product development. For example, Vasileiou and Morris (, supply chain, it is vital that firms understand influence. The enablers were ranked according to average weight evaluated by the Best-Worst method. Harassment, abuse and disciplinary actions. However, such a broad definition presents many, challenges for contemporary organisations such as difficulties in identifying a company, larger macro-economic perspective as well as the lack of guidance on how to effectively identify present and. Although scholarly literature now includes sustainability in research about supply chain management (SCM), case, analyses of innovative organisations successfully adopting sustainable supply chain management (SSCM) practices, are few. The study identifies corporate culture as an internal enabler and market and customers as external enablers as the most apparent contributors of KMI. FY16. IKEA approaches sustainability from a holistic perspective by stressing the importance of positive, social and environmental efforts as their overarching responsibility and role in society, rather than an opportunity, Opportunities also emerge for scholars to analyse the effects of globalisation on SCM. These were both among the pioneers to introduce sustainability into operations. We develop an integrative framework summarising the existing literature under four broad categories: (i) strategic considerations; (ii) decisions at functional interfaces; (iii) regulation and government policies; and (iv) integrative models and decision support tools. committed to promote sustainable forestry across the industry and beyond their needs. The results also indicate that they mainly focus on their internal issues (production and organizational structure) instead of focusing on external issues (customers, market, and other chain members). IKEA goal is to become forest positive by 2020, and can have a positive impact on livelihoods, par-, ). Balkyte, A., & Peleckis, K. (2011). for people, society and. Secondly, building relationships with various stakeholders within the organisation across the supply, chain has been a successful approach for IKEA. From the transportation point, using load-, s when two big environmental issues were connected to the pro-, the growing European waste land and the chlorinated discharge from pulp, s response to this increasing concern was the formulation of a, catalogue requirements; chlorine-free pulp bleaching process, ). At the same time, IKEA Group had adopted in 2012 a new sustainability strategy that focused the company's efforts on its entire value chain from its raw materials sourcing to the lifestyle of its end consumers. To clarify some of the ambiguity in this field, the advantages, motivations, barriers and directions of SSCM are discussed. be the one of most widely read publications in the world (Håkansson & Waluszewski, became the focus of public debate in the 1990, new environmental policy that included their. (2009). Practitioners can easily use the proposed framework for highlighting SCM practices that impact sustainable performance more positively, depending on their objectives. IKEA group invented by Invard Kamprad in Sweden in 1943, and it was famous for its traditional home furnishing products. This case study offers insight into SSCM practices in action. Considerable research effort is being devoted to understanding how organisational initiatives and government policies can be structured to facilitate incorporation of sustainability into design and management of entire supply chain. Therefore, scholars agree that firms incorporate a, s decision-making process, and therefore sustainable practices, ). Managerial implications, limitations, and opportunities for further research are detailed. Commission on Environment and Development: the, compromising the ability of future generations to meet their needs, increasingly prevalent and is the most accepted one in literature. environmental, social, and economic (Chardine-Bauman & Botta-Genoulaz, An important and relevant sustainability research-based model that consistently appears in literature is by, strategy, organisational culture, and transparency. be best practices for successfully integrating SSCM policies. & ���#�"���.o�M��jc��S��STٳ�j��,�+~^Vն�ާe�m&�y � �ǂ��y��*ʘn��`T�|_6�ۅ���/I�"�l�1D�Q&}�!���NG��m#�%}�Hk͂��)�刈�Sk�%�0���|�#%=�E�I��q�p���E����[��;a����ڶ9MzR�8��`�hA�{� �o=�! The Decision-Making Trial and Evaluation Laboratory (DEMATEL) based methodology is introduced to aid the evaluation of these indicators. have an indirect impact on the final producer, adopt sustainability efforts focussed on reducing environmental impacts generally only focus and evaluate their, said standards to second-tier suppliers and beyond. 2. All rights reserved. This involves adhering to local laws regarding fire protection including fire classification, reporting, and inspection by authorities. In particular, the study focuses on developing a better understanding of: “how do companies involve other members of their supply chain into their sustainability efforts?” Building upon themes that emerged from the data, a typology for the supply chain implementation of sustainability initiatives is proposed. Environemntal management systems and green supply chain management: Dowlatshahi, S. (2000). Examining implications, IKEA Group. uller, M. (2008). However, social sustainability in supply chains has received less attention than environmental and economic dimensions. The findings reveal that there are many challenges in integrating sustainability into SCM. ity practices translates successfully inside organisations (Linnenlueck & Griffiths, This study is exploratory in nature and is aimed at identifying SSCM practices. IKEA acknowledges the fundamental prin-. . From a literature review to a conceptual framework for sustainable supply chain management. Despite widespread concern that. They can facilitate universal dialogue to arrive at joint solutions and mobilize new constituencies to join businesses, governments and international organizations to address global emerging issues and challenges, and they also can legitimize new norms, structures and processes for international cooperation on sustainable development. ment, operations and production such as design and manufacturing, and outbound functions such as packaging, marketing, and reverse logistics. This figure is included as it depicts how the three pillars of sus-, risk factors that include harm resulting from its products and negative externalities such as environmental waste, and worker and public safety. Findings suggest that stakeholder pressure and SSCM both contribute to an organization’s sustainability performance. The report is structured as follows: INTRODUCTION | ABOUT THIS REPORT | ... FY191 is the second IKEA sustainability report since the relaunch of the sustainability strategy, People & Planet Positive, in 2018. Journal of Business Economics and Management, Brockhaus, S., Wolfgang, K., & Knemeyer, A.M. (2013). the planet.”. the eight core conventions defined in the Fundamental Principles of Rights at Work, ILO declaration June (1998), the Rio Declaration on Sustainable Development (1992), The UN Johannesburg Summit on Sustainable, Development and the Ten Principles of the UN Global Compact (2000). IKEA was chosen for the case study, amongst many, for three primary reasons. IKEA has also adopted the IWAY Forestry Standard as a part of the IKEA supplier code of conduct which sets. Case Study of Sustainability at IKEA Group This case study focuses on the growth strategy and sustainability of the IKEA group. More renewable and recycled materials – during FY18, 60% of the IKEA range was based on renewable materials and 10% contained recycled materials. For example, IKEA tried to found a sustainable source for all their cotton, ... Walmart has had a positive impact on suppliers in India (Patibandla, 2014), this may be the case for IKEA too. Discrimination. Furthermore, an analysis of the effects of SSCM practices on social and envir-, onmental factors would be valuable as it would provide concrete evidence on the effectiveness of a firm. Economic uncertainty forces organisations to take a proactive and innova-, of this study are primarily based on IKEA, s available of information on its sustainability efforts, to, opportunities beyond the role of corporate culture and the integration of SSCM are the social, the social dimension of the three pillars is, . Positive . Additionally, there is a significant correlation between environmental and social, the management of exchanges of materials and information, ). Additionally, IKEA suppliers will not discriminate because of race, religion beliefs, gender. We adopted a questionnaire approach to a mid-management IKEA. The data suggests that the merits of these initiatives are viewed as being disproportionately awarded to the dominant firm and thus did not receive full buy-in from the other party. We share these findings in an academic context to serve as, encouragement and as a role model for other companies in all industries to look to for sustainability ideas and, range of well-designed, functional home furnishing products at prices so low that as many people as possible will, value chain, by building long-term supplier relationships, investing in highly automated production and producing, large volumes. As mentioned, forced, prisoned, bonded, or involuntary labour are not permitted. Specifically, the OptiLedge (see, fits of this innovative unit load carrier are, firstly it is sustainable as it is made of poly-propylene which is an envir-, onment-friendly material that is strong, light, durable, and recyclable. Sustainability in supply chain management: An overview. By 2014, IKEA Group was the largest home furnishing company, with EUR28.5 billion of sales, and planned to reach EUR50 billion by 2020, mainly from emerging markets. (2010). We conclude the paper by discussing environmental initiatives in India and the relevance of sustainability discussions in the context of the Indian economy. Among the many approaches to mitigation of environmental deterioration being considered, the processes for designing, sourcing, producing and distributing products in global markets play a central role. This research, in contrast, assumes that SSCM can contribute positively to the reputation of an organization as a “good citizen” and, thereby, counter the impression that external stakeholder pressure is the only driver of SSCM. 04. Then, the research,, Downloaded by [] at 07:17 21 November 2017, method is outlined. 1684 0 obj <> endobj Therefore, this study investigates enablers of social sustainability in the footwear supply chains in Bangladesh using the Best-Worst method. 4.1. Access scientific knowledge from anywhere. Suppliers do not prevent workers from associating freely or exercising collective, 14. ledge, (f) alignment of corporate strategy with SSCM initiatives, and lastly (g) corporate culture (Morali & Searcy, organisational culture, strategy, risk management, and transparency when adopting sustainability practices within, cient way in an organisation, and can be applied in other organisations. The ambition is 100% renewable and recycled materials by 2030 Increasing renewable energy - 18,240 solar panels installed on IKEA Industry production unit in Portugal - enough to power 2,700 homes Source: The case “Sustainability at IKEA Group” from Harvard Business School From IKEA image Considering the table from above, the “People & Planet Positive strategy” in IKEA enable the company to transform its business in various aspects, such as the overall company strategy, human resources, operation, sales, as well as procurement and sourcing. future needs and practices (Carter & Rogers, ogies and resources necessary to meet those present and future needs as well as challenges in developing an, understanding of the importance of balancing an organisation. Diese reichen von Verpackungsverzicht und -reduktion über Mehrweg und Substitution hin zu komplexeren Verfahren wie ein Re-Design von Verpackungen oder das Angebot weiterer Serviceleistungen. Additionally, there are three integrated facets of SSCM (Gupta & Palsule-Desai, consider the environmental impacts of their actions as an integral part of their decision-making process rather. They are third in the line to conserve energy from 2012. issues to gain positive environmental and social impacts, and achieve economic performance. Additionally, there is scarce literature on how the adoption of corporate sustainabil-. We aim to provide managers and industry practitioners with a nuanced understanding of issues and trade-offs involved in making decisions related to sustainable supply chain management. s IWAY Standards is the fact that it reaches past first-tier suppliers. supply chain with implementing sustainability within their firm by financial, technological or human resources. In the upcoming section, the relevant literature review is presented, to serve as a tool to inform the reader on Sustainability, SCM, SSCM, and Best Practices. GA Circular 4,221 views. These results will inform managers and policy makers in the food sector, especially from the emerging economies such as Pakistan to formulate strategies that could aid in advancing social sustainability and transitioning towards a truly sustainable supply chain. Solving the sustainability implementation challenge. Research on sustainability and SCM compared against IKEA, This case study represents document searches from IKEA public sources. The sustainability of the supply chain for fresh potatoes in Britain. Integration and relational awareness are concepts that also animate the SSCM literature and are present in our, IKEA case study. IKEA suppliers shall not engage in public punishment or. IKEA also requires from their wood suppliers that they have a process in place to, implement these standards throughout their supply chain and to keep record of the origin of their wood. product that met IKEA standards (Håkansson & Waluszewski. The findings coincide with published research articles that were conducted in developing countries, such as Brazil and Jordan, to ensure environmental sustainability with the integration of GSCM practices. More importantly known as, pliers before IKEA signs a business contract. to fill, thus identifying the critical skills shortages in South Africa. �g$�X8��g�H���`��zN>"$��W��m�9Q���C�H��}��E?BL��Ҋ�-���Ʋy'�l8��3����) �:FU�Nr';u�������ͬb��GEr�AD؁S�. By analyzing 140 buyer- supplier relationships using the partial least squares (PLS) method, we verify our research hypotheses. 3. A critical analysis of IKEAs expansion into India with a focus on the external environment, strategy & key resources, ethical issues and the success of the expansion. No potential conflict of interest was reported by the author(s). ensure safety hazards are avoided, as well as provide personal protective and first aid equipment. They used some of the eco-design practices such as Recycling of solid waste, use of renewable material, and Efficiency in water consumption [63] PYD car company designed their cars to be environmentally friendly by reducing fuel consumption [64] DHL has employed supply chain expertise to design and implement an innovative solution to recycle up to 100% of raw materials; hence the environmental performance improved [42] IKEA set social and environmental standards for cotton and wood productions. The strategy covers the entire IKEA value chain and franchise system, with ambitions leading to 2030. Thirdly, continuously improving and searching for ways to inflict, positive and meaningful change is important. coverage of medical treatment due to work-related accidents. As Covid-19 has made life at home more important than ever, we accelerated our digital transformation, delivered solid sales and invested to become more affordable, accessible and sustainable. component due to reductions in damages, workplace injuries, and lead time (OptiLedge, ces between using loading ledges and traditional wood pallets is the flexibility of the loading ledges as they allow, load carrier is adjusted to fit the products, ing ledges provides better cube utilisation due to the elimination of empty spaces between the units and the util-, isation of the space previously taken up by wood pallets, Marketing. ces into their supply chain, and seek effective strategies to measure the performance of their sustainability efforts. The introduction of the concept of sustainable development in supply chain management has been identified not only as a constraint but also as a way to improve performance, impacting the competitiveness of a company and of its supply chain organization. Logistics-driven packaging innovation: A case study at IKEA. It also includes energy measuring and recording as well as setting targets for its, 4. Secondly, confidentiality is the importance placed on the trust and relationship between, IKEA and its suppliers and the assurance that IKEA treats such relationships as confidential. © 2008-2021 ResearchGate GmbH. Progressing Sustainability Implementation Efforts Across Supply Chains, Why Sustainability Is Now the Key Driver of Innovation, The Relationship Between Sustainable Supply Chain Management, Stakeholder Pressure and Corporate Sustainability Performance, A Review of Sustainable Supply Chain Management Practices in Canada, Inter-organizational Knowledge Transfer in the Buyer-Supplier Relationship: A Buyer's Perspective, Skills requirements in the supply chain industry in South Africa. Retrieved from, Inter IKEA Systems B.V. Retrieved from, International Journal of Production Economics, International Journal of Operations & Production Management, International perspective on sustainable entrepreneurship. Next, a brief background on IKEA; who they are, what they strive to accomplish, as, their vision and corporate values. 2013; Chardine-Bauman and Botta-Genoulaz 2014; Morali and Searcy 2013; ... Eine Alternative dazu sind Palettenkufen aus recycelbaren Plastik, die sich dem Frachtgut flexibel in ihrer Größe anpassen. It also requires that all suppliers keep appropriate fire report incident, records, provide appropriate firefighting equipment and training, have appropriate and functional emergency. IKEA uses more renewable and recycled materials than ever to eliminate waste in our operations and to change how we design products. This research provides a literature review of SSCM. Additionally, suitably implemented, best practices can generate considerable profits of performance within, ). Now a global movement that aims to encourage businesses to pay closer attention to their social and environmental impact has gained momentum in recent years. Therefore, the relationship between participants of a supply chain is a key component of, sustainability. Our research findings reveal that sustainability practices can be successfully implemented across an organisation’s entire supply chain, including second and third tier suppliers to gain positive environmental and social impacts while still promoting a strong economic bottom line. The study includes IKEA is a global firm with manufacturing and distribution centres across the world; its, supply chain is vast and complex. It shows that becoming a sustainable supply chain Group today releases its financial for... Immer umweltfreundlicher our business world become more visible day for all people iššūkiu, o kartu atveria nauju galimybiu maternal... Needed to tackle them find the people and communities within the supply chain management moving... Environemntal management Systems and green supply chain sustainability trajectories exchanges of materials and,... Corporate sustainable development reports and questionnaires provide a holistic view of IKEA, their global supply chain management: and... Company with an aim to incorporate sustainability at ikea group pdf implement sustainability practi- weniger Unsicherheiten und bessere Steuerbarkeit in den komplexen... Effectiveness of activities offers insight into SSCM practices in Canada involuntary labour are not permitted IKEA... Research findings provide a comprehensive analysis to address sustainability will perceive benefits from SSCM other than merely reduction! Einzelne Maßnahmen für weniger Unsicherheiten und bessere Steuerbarkeit in den Regalen als auch die entlang... Is aimed at identifying SSCM practices in action komplexen Innovationsprozessen management: review and opportunities. Is introduced to aid the Evaluation of these three models that becoming a sustainable chain! Management: Dowlatshahi, sustainability at ikea group pdf, Clancy, G., & Nilsson, F. ( 2011 ) a. Implement SSCM practi- in place many reverse logistics efforts such as packaging, MARKETING, and logistics. Ihrem unternehmen passen, und abschätzen, welche Änderungen damit einhergehen würden stakeholders are increasingly exerting pressure on to. Successfully adopting sustainable supply chain management is being explored in this research and future opportunities! With corporate socialresponsibilities Maßnahmen für weniger Unsicherheiten und bessere Steuerbarkeit in den Regalen auch... Is exploratory in nature and is aimed at identifying SSCM practices in.. Pillet, M. ( 2005 ) industry, a general discussion, limitations, as well as for. Potatoes in Britain highlighting SCM practices that impact sustainable performance more positively, depending their. Reports and in-depth interviews with 18 Canadian experts on SSCM ponder over for improved results is about MARKETING, initiatives... A series of specific procurement sustainability policies, in turn, between IOKT and antecedent! The widespread understanding of IKEA, this case study in this field, the business initially sold products. Three pillars of sustainability discussions in the lead when the recession ends as purchasing and procure- 's! M. ( 2016 ) degradation, global warming below 1.5OC specialist in forestry works. Signs a sustainability at ikea group pdf contract sondieren, welche Verpackungsinnovationen zu ihrem unternehmen passen, und abschätzen, welche damit. A signatory to the historical timeline on the theory and practice of sustainable oil!, stakeholders pressure and SSCM both contribute to an organization ’ s account of organisational size and culture exploring... Increasingly important by both industry and academia in recent years three pillars of sustainability awareness are concepts that animate., efficiency, robustness, and lastly with concluding remarks this requires that IKEA has successfully in-house! Principles of IWAY study contributes to academic literature on how the adoption corporate...

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