Ikea's global agenda

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CSR
Ikea's global agenda
ACHARA DEBOONME
THE NATION


Jonathan Spampinato shows soft toys and LED light bulbs

BANGKOK: -- Uniqueness and effectiveness could be the keywords that characterise CSR campaigns of Ikea, the Scandinavian furniture and accessories store.

While in Bangkok, Jonathan Spampinato, Ikea Foundation's head of communications and strategic planning, stressed that all the campaigns must be innovative and effective. This was the prerequisite for all donations, whether involving money, products or knowledge.

Local needs are factored in when the campaigns are launched by Ikea stores, which span 39 countries. In the countries where there are no stores, the foundation has contributed through 40 partners for projects in over 46 countries, including Myanmar, Indonesia and the Philippines. To date, contributions through the partners have amounted to 104 million euros (Bt3.94 billion). The campaign is now the sixth largest in Europe and the 14th in the world in terms of contribution.

EvaluatIon reports

To win donations, partners are required to come up with project planning and evaluation reports. They must sign contracts to show their accountability in the projects and then they must follow that with progress reports.

"What you try to accomplish and what you accomplish is important. Funding will follow the reports and the reports will determine entitlements to future funding," he said.

The UN High Commissioner for Refugees (UNHCR) is among the major partners. From the start, the organisation and Ikea have worked hand in hand to ensure the uniqueness of the projects. The first project involved a trip to refugee camps in Africa, to sound out what Ikea could help in improving health conditions.

Cheap, easy-to-use and able to stand different climates, utensils were among the answers, as most of the people eat with their hands, leading to health problems.

Then workshops followed, involving the design team in Sweden. With the right design, the packing team brainstormed on how to transport a large volume of utensils in a limited space.

Ikea's employees, vendors and customers are also extending help to its CSR activities carried out through 320 stores worldwide.

Launched 12 years ago, a Soft Toys for Education Campaign has raised 67 million euros, with 20 million going to Asian countries. Launched last year, Brighter Lives for Refugees Campaign raised 7.7 million. For these projects, the foundation will donate 1 euro for every soft toy and light bulb sold during the campaigns.

In Thailand, the Soft Toy Campaign ended on January 10, but the LED campaign will run until March 29. From 2011, when the store was first opened through 2013, over 230,000 toys have been sold, indicating the donation of 230,000 euros for Save the Children and Unicef. Over 50,000 toys were sold in 2014. Meanwhile, sales of the LED light bulbs skyrocketed by 233 per cent from the previous year when there was no campaign, ensuring sizeable donations to UNHCR.

According to Supharoek Wichianchot, sustainability manager for Ikea in Thailand, each year before the start of the campaigns, breakfasts were hosted for employees and vendors. They were briefed on the projects and encouraged to take a lead in buying the products.

"Customers are responding well to the campaigns," Spampinato added.

He said Ikea's CSR activities started in India, launched to protect child labour involved in cotton picking, as the store sourced clothing materials from that country.

Driven by the vision Happy with Ikea, the store is enticing employees and customers to do something good for the world—particularly children and the environment.

Its projects are now focusing on health, education, accommodation and sustainable family income.

"We believe we must help children all over the world, as they are the most important people in the world," he said. "We're also pushing our customers to be environmentalists, to pursue environmental agendas. It's a good thing to help customers change the future and bridge the differences."

He noted that UNHCR, a key international organisation taking care of refugees numbering more than 50 million, is a major partner given that its funding has been insufficient.

"Everybody wants to help neighbours next door. But what about neighbours far away?" he asked. "We didn't tell customers to donate but we encouraged them to participate. Our cause is not to raise money but to raise awareness."

Spampinato said it was possible to say that Ikea extended unlimited support to the foundation's activities, with full support from the board of directors and shareholders. The company's charter targets contributions of 2.5 per cent of net profit to CSR activities. The benchmarking by UK-based KPMG showed that the contribution in 2014 was equivalent to 3 per cent of profits.

While saying that the money was one thing, he asserted that Ikea also ensured that the assisted projects were innovative. This was in line with the corporate shared value that quality is priority. With help from good suppliers, Ikea could offer quality prices without pressuring suppliers to reduce prices.

Source: http://www.nationmultimedia.com/business/Ikeas-global-agenda-30252592.html


-- The Nation 2015-01-25

[JAG]

I await the global conspiracy theories.

[BSJ]

You would think a big corporation could do better things with the money.....corporate yacht, corporate biz jet, BoD weekends in St Moritz.....or do they already do that?

[mca]

I think Ikea's global agenda is to create a world of Narnia's after trying to find the exit once at the Mega Bangna branch

Edited January 25, 2015 by mca

[theguyfromanotherforum]

Spam

[Benmart]

I await the global conspiracy theories.

I prefer to await the arrival of the sunrise or sunset. They, much like conspiracy theories, are beyond my control.

[Wilsonandson]

A name change in Thailand would be a good idea. I said "Lets go to IKEA" to my wife and she replied "Alie, wa" I said again "IKEA" and she slapped my face.

[chooka]

Over priced bloody rubbish. It's not furniture just cheap partical board crap that is lucky to Last two weeks.

[bradenroger]

Sure wish IKEA would open a store in Pattaya. With all the condo construction there, I would think it would be lucrative.

[Khonper]

Over priced bloody rubbish. It's not furniture just cheap partical board crap that is lucky to Last two weeks.

After you mounted it,yes

[MJP]

About to (fingers crossed) break ground on an Ikea development in London this month. And it ain't for a store full of pine shelving.

[KamalaRider]

A name change in Thailand would be a good idea. I said "Lets go to IKEA" to my wife and she replied "Alie, wa" I said again "IKEA" and she slapped my face.

[ronrat]

Pity the same mob weren't good enough to pay income taxes in some of the countries they operate.Not saying Governments were smarter in spending than them but there is a sense of hypocrisy in all this.

[MJP]

Jonathan Spampinato shows soft toys and LED light bulbs

Well <deleted> me! Really?

It's incredible. All the money is in gassy soft drinks, fat saturated burgers and pine shelving units . . . cuddly toys and light bulbs not withstanding.

If you want to live with the classes, sell to the masses.

[wabothai]

The banks together with Ikea, sounds like a great conspiracy to control, actually that's all we need.

[Loles]

And did they pay for this advertising ?

[Thongkorn]

Cannot wait to see how long chip board lasts in Thailand's heat and humidity.

[Peterphuket]

Over priced bloody rubbish. It's not furniture just cheap partical board crap that is lucky to Last two weeks.

And, it strucks me that last year the price has risen by more than 25%.

It is easy comparable with there website for example in the Netherlands, there is a V.A.T of 21% but in Thailand only 7%, many product now are more expansive then in The Netherlands.

Previously I still wanted to buy, but today I come no more.

And yes, there headoffice is in the Netherlands, ofcourse for tax reasons.

Once I complained about there products, I bought in Thailand, in the Netherlands, but they reffered me back to Thailand.

And what kind of answer do you expect to get in Thailand?

[rakman]

Over priced bloody rubbish. It's not furniture just cheap partical board crap that is lucky to Last two weeks.

And, it strucks me that last year the price has risen by more than 25%.

It is easy comparable with there website for example in the Netherlands, there is a V.A.T of 21% but in Thailand only 7%, many product now are more expansive then in The Netherlands.

Previously I still wanted to buy, but today I come no more.

And yes, there headoffice is in the Netherlands, ofcourse for tax reasons.

Once I complained about there products, I bought in Thailand, in the Netherlands, but they reffered me back to Thailand.

And what kind of answer do you expect to get in Thailand?

Understanding international business is quite convoluted.

Most countries have laws limiting business from outside the host countries to 49% ownership. The result is "in country business" becomes something like a franchise.

This is why IKEA Thailand is the company you have to complain to about a product, IKEA Thailand is the owner of goods sold. Now if there is an international corporate policy you have questions about, then contacting the head office is appropriate.

As for prices, many countries invoke expensive tariffs on goods from out of country. IKEA has no control on the tariffs, they are forced to raise prices of the goods to cover the tariff. This is why many "foreign" products in Thailand are more expensive than domestic products. This follows economics 101: Corporations don't pay taxes, they raise the price of the goods to pay for the taxes. The consumer pays the tax.

[CaptainS]

Over priced bloody rubbish. It's not furniture just cheap partical board crap that is lucky to Last two weeks.

And, it strucks me that last year the price has risen by more than 25%.

It is easy comparable with there website for example in the Netherlands, there is a V.A.T of 21% but in Thailand only 7%, many product now are more expansive then in The Netherlands.

Previously I still wanted to buy, but today I come no more.

And yes, there headoffice is in the Netherlands, ofcourse for tax reasons.

Once I complained about there products, I bought in Thailand, in the Netherlands, but they reffered me back to Thailand.

And what kind of answer do you expect to get in Thailand?

Many products have high import charges by customs when bringing them into Thailand.

[CaptainS]

Over priced bloody rubbish. It's not furniture just cheap partical board crap that is lucky to Last two weeks.

I think many of the local shops in Thailand have even worse quality. I am happy there is Ikea now in Thailand. What a great selection of furniture.

Yes they have some really (too) cheap products/low quality but you can also find many things there which are of a high standard. I have some Ikea products for over 30 years already and they are still fine.

[Suradit69]

Sure wish IKEA would open a store in Pattaya. With all the condo construction there, I would think it would be lucrative.

I'm sure you can get some slightly damaged wooden fruit and vegetable crates from the Pattaya Tai market and make your very own Icky Furniture.

[surangw]

A name change in Thailand would be a good idea. I said "Lets go to IKEA" to my wife and she replied "Alie, wa" I said again "IKEA" and she slapped my face.

one more reason key lime pie is not a big seller in thailand

[BSJ]

Sure wish IKEA would open a store in Pattaya. With all the condo construction there, I would think it would be lucrative.

I'm sure you can get some slightly damaged wooden fruit and vegetable crates from the Pattaya Tai market and make your very own Icky Furniture.

You'd be lucky to find a wooden crate at any market these days.

[TPI]

I'm only sorry we don't have one up here......I could do with a plate of swedish meatballs! On another point, I've used the furniture in the tropics in Oz and they stood up quite well and no, I've never worked for them!