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Before we start to analyze sustainable carry out by IKEA, first we need to know the meaning of
sustainable. The term sustainability development was found in the report of Brundtland
Commission that means to meeting the needs of the present without compromising the ability
of the future generations to meet their needs. Sustainable development not only involves in
environment but it also consists about customer, community and the company reputation. It
also related to corporate social responsibilities. Corporate Social Responsibilities is give critical
factor affecting success and image of business. To successfully implement sustainable
development, professionals, experts and the general public need to be engaged (Roberts et al.
To create a company whose mission is true sustainability, all engaged individuals need to have
a better understanding of what sustainability entails (Aimee, Katherine, Dorothy. 2011). In
business, usually the person who in charge about sustainable development is a manager, other
than try to increase profit and sales they also need to think how to imply the sustainable
development. The manager must be able to determine how their organizations can become
more socially responsible, ecologically sustainable and economically competitive (Orlitzky,
S.Siegel, Waldman. 2011). The use of sustainable in organization is to make business and
society benefit over the long term. Besides, for over twenty years, many Organizations or
agencies and government have implemented program to incorporate sustainability into their
policies and regulations. They want make people realize that how important sustainability
development in human life and world.
Other than that, business which implements sustainable development can get many benefits
such as reduced operating cost, decreased resource usage, maintained legal obligations and
improved company reputations. However to successful there might be some barrier that has to
face by organization that allows them to remain competitive.

Sustainability of IKEA
From our analysis, we found out the chief sustainability Officer IKEA Group, Steve Howard have
consider from many perspective while doing IKEA business. For example, the main resources of
IKEA are from wood and cotton. In other to make sure the resources has long term condition
and will continue supply to them, the IKEA have work with WWF, Better Cotton Initiative (BCI)
Forest Stewardship Council (FSC) and support projects to train farmers and improve their forest
management. Furthermore, in 2013 IKEA have made some progress by increasing number of
solar panels and operate wind turbines around the world. Ikea have banned PVC from their
product and lead in mirrors for reduced formaldehyde from lacquer and glues. IKEA also not
used optical brightener in IKEA textile. Steve Howard hope by implemented sustainable
development the future generation can allow enjoying the same or better quality as we have

In 2012, IKEA has launched a new strategy People and Planet Positive and this strategy was
also used in 2013. Through The new strategy, IKEA have used this strategy to drive innovation,
transform the business and unleash new business opportunities. IKEA have considered from
many perspective like maintain and develop relationship between supplier, co-workers, securing
long-term access to important raw material and increase productivity. This is also showed that
how the IKEA practice corporate social responsibilities to the environment, societal and financial
impact in their decision making.
They believe that sustainability means the three factors which are environment, economic and
social it is very important to protect for people while living in this planet.

People Planet

IKEA has developed a new strategy that aware the effect of people by improving quality of life
of people, communities and also their relationship with supplier. From perspective employees,
IKEA provide opportunity to their co-workers to develop, learn and take on challenging tasks. In
IKEA, every person is seen as a talent and every individual contributed to the growth of the
business. They always welcoming, people who has a humanistic value and they want IKEA to
be a great place to work. The most important, IKEA providing a healthy and save environment
to their co-workers. They want all their co-workers experience healthy and safe workplace by
physically, mentally and socially. The approach implement at all IKEA units includes:
Mandatory safety training for all co-workers
Safety committees, made up of co-workers representatives and managers.
Safety coordinators who conduct risk assessments and review safety risks.
Tracking near-miss incidents and other leading indicators to create a safety culture and
prevent future accidents.
In perspective of supplier, IKEA has a relationship with more than 600,000 people work as their
home furnisher supplier in over 50 countries. In the year 2000, they have launching IKEA Way
on Purchasing Products, Material, and Services (IWAY) and able to initiate thousands of
improvement in social and working conditions around the world because they always have
positive influence and encourage their suppliers to create good places to work. IWAY has
helped them to develop long term relationship with the supplier and expend globally from the
first tier home furnishing to areas such as transportation, warehousing, food, retail operations
and others.
From perspective customers, IKEA want their customer involve in contribute positive social and
environment responsibility. They dont want their customer not only know about their product
but also know benefit of product. They want give the need and give a better product in their
customer life not only a day but every day. In other to communicate with the customer, IKEA
Strategy sustainable by IKEA
make sure their co-workers learn more about the environment so they can communicate the
benefit to the customers. IKEA has used their website and catalogue to distributed to millions
households about the information of sustainable on the price tags their product to help their
customer to save energy. In the response of their effort, they get encouragement and support
by their customer.
Lastly communities, IKEA is active in supporting project that is designed to the needs of
communities. IKEA believes that home is the most important place in the world and also
children are the most people in the world. IKEA have involved many activities that support
communities. They want provide better life to the communities. Most IKEA country
organizations have partnership with national environmental or social NGOs.
While doing business, organizations are encouraged to look at the big picture and see their
impact on the world around them. IKEA have looked many ways in other to reduce the
environmental impact. They work with supplier to make sure the raw materials they use are
better for the environment and the people. They focus more on wood and cotton source.
IKEA product mostly make from wood, it is very important raw material and need for the long
term without reducing resources. All suppliers dealing with IKEA must meet their IWAY Forestry
Standard to make sure the wood that delivered are legally and doesnt have negative impact on
the environment. If the suppliers fail to meet their IWAY Forestry Standard, the IKEA will stop
working with them. IKEA have been partnership with global conservation organization WWF.
WWF is help them to fight illegal logging and supports credible forest certification and also
responsible for timber trade. Among the countries that supply sources of wood to IKEA are
china and Russia. IKEA are also working together with WWF in China and Russia to protect high
value forest and to improve legality in global timber trade.
Cotton is one of the most important raw materials for IKEA. Product IKEA such as sofas,
cushion and lampshades are made from cotton. IKEA has work with WWF and Better Cotton
Initiative to improve social and improvement standard. The industries of cotton involve several
problems such as child labor and health risks associated with the use of chemical. IKEA has
found other alternative to reduce the use of cotton, they blending it with other textile and
replacing it with cellulose fibres. They also working with UNICEF and save the children to
address the root causes of child labor by raise awareness of the importance of education
improve school and help poor families to support themselves. Besides, to make sure the sources
of cotton not stop, they invest in countries they took the cotton by train farmers in more
sustainable cotton cultivation.
Carbon Footprint
In 2013, IKEA has used a new modal for measuring their total carbon footprint. The model
helps them to identify material with high carbon impact. They identified the most product that
contributed to the carbon footprint are raw material production, product manufacturing and
product use. They have installed photovoltaic (solar) panel on around IKEA and also made large
investment in wind farms.

IKEA website
1. IKEA Group sustainability Report 2011
2. IKEA Group sustainability Report 2013
3. People & Planet Positive IKEA Group Sustainability Strategy for 2020
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4. Orlitzky, M., Siegel, D.S. & Waldman, D.A. (2011). Strategic corporate social
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