IKEA's Environmental Practices: Making Good Business Sense
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Business Ethics Case Studies
The Need for Environmental Initiatives
Though IKEA began taking an active interest in social activities in the early 1970s, its interest in environmental activities can be traced back to the mid-1980s when a new law was passed in Denmark regulating the maximum permissible emissions from formaldehyde off-gassing in particle boards. The government tested IKEA's products and found that the formaldehyde in some of the products was above the limit allowed. IKEA was sued and a fine was levied on it. Sales in Denmark went down by 20% and the company's image suffered as a consequence...
IKEA - Focus On Environment
IKEA started off with a 'train the trainers' approach to spread environmental awareness across the organization. Trainers chosen from each department attended a weeklong training course. IKEA then decided to provide training to employees involved in product design and those who were in direct contact with the customers from the purchase, distribution, and retail departments. The training modules included basic environmental knowledge according to TNS; background, policy and action plan of IKEA's environment program; and specific training for different groups that were in direct contact with the customers.
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