IKEA in Russia - Ethical Dilemmas




Case Details Case Introduction 1 Case Introduction 2 Case Excerpts

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INTRODUCTION

In July 2012, a Turkish national, Okan Yunalan (Yunalan), who acted as an intermediary for Carl Ola Ingvaldsson (Ingvaldsson), former Head of the Leasing Department in IKEA’s Russian subsidiary (IKEA MOS), to extract a bribe, was sentenced to five years in a high-security prison. Yunalan was found guilty of large-scale extortion after he demanded 6.5 million ruble (US$ 225,000) from a company that sought to lease two premises at IKEA’s Mega shopping complex in Tyoply Stan, a suburb in Moscow. Ingvaldsson and another accomplice managed to leave the country and Russia was seeking their extradition.

IKEA stated that it welcomed the investigation by Russian authorities into the incident and would co-operate fully with them. This was not the first instance of corruption seeping into its Russian operations negating its tough stance against the all-pervasive corrupt business environment in Russia. IKEA was known for its uncompromising attitude toward corruption but it had not always been successful in ensuring that its employees adhered to its ethical standards...

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