IKEA Corporate and Social Responsibility (CSR)


Making good business while being a good business

IKEA believes that traditional business objectives and social and environmental responsibility can work very well together for the benefit of the many

IKEA CSR activity involves three main areas:

1. children,

2. better living and

3. environmental projects.

IKEA wants its products to have the minimum impact on the environment. And for these products to be manufactured in a socially responsible way.

Bureaucracy is fought at all levels in the organization
Emphasis on efficiency and low cost inspires entrepreneurial creativity
Design teams enjoy complete autonomy, but are expected to design new appealing products regularly.

Bureaucracy is fought at all levels in the organization.

IKEA culture emphasizes efficiency and low cost which is not to be achieved on the expense of quality or service.

IKEA's success is based on the relatively simple idea of keeping the cost between manufacturers and customers down. According to Ingvar Kamprad, the founder of IKEA, "To design a desk which may cost $1,000 is easy for a furniture designer, but to design a functional and good desk which shall cost $50 can only be done by the very best. Expensive solutions to all kinds of problems are often signs of mediocrity."

Symbolic policies, such as only flying economy class and stay at economical hotels, employing young executives and sponsoring university programs have made cost part of corporate culture and has further inspired the influx of entrepreneurship into the organization.

For instance, all design teams enjoy complete autonomy in their work, but are expected to design new appealing products regularly.

Costs are kept under control starting at the design level of the value-added chain. IKEA also keeps costs down by packing items compactly in flat standardized embalages and stacking as much as possible to reduce storage space during and after distribution in the logistics process

IKEA is a very successful multinational corporation, which indicates that long-term strategy of cost leadership and product differentiation has served it well. IKEA approaches unknown, small, high risks markets by franchising. IKEA has a lot of subsidiaries in many countries of the world. Franchisees have to carry basic items, but have the freedom to design the rest of the products.



 Harnessing Cultural Intelligence (CQ), Leveraging Diversity (PowerPoint presentation download, Vadim Kotelnikov, World Cultures)