MGM102H5 Chapter Notes - Chapter 11: Tacit Collusion, External Auditor, International Labour Organization
Document Summary
Ikea(cid:859)s glo(cid:271)al our(cid:272)i(cid:374)g challe(cid:374)ge: i(cid:374)dia(cid:374) ugs a(cid:374)d child la(cid:271)or (cid:894)b(cid:895) Mattson facing decision to terminate relationship with a major long-standing supplier. The initial problem, the initial response: 1994 first confronted with child labour accusations in manufacturing rugs. Quickly required suppliers to acknowledge they were not to use child labour stated that any evidence of such behaviour would result in contract termination: 1995 first big test. German television program broadcasted an investigative report of rangan exports major supplier of rugs to ikea employing child labour. Barner: immediate terminated the contract, story was fabricated, they apologized and reinstated the supplier: (cid:862)we (cid:449)o(cid:374)(cid:859)t a(cid:271)a(cid:374)do(cid:374) e(cid:454)isti(cid:374)g suppliers u(cid:374)less the(cid:455) are (cid:449)illi(cid:374)g to eli(cid:373)i(cid:374)ate (cid:272)hild la(cid:271)our(cid:863) Barner believes in committing long-term to make a difference: rejected invitation to join the rugmark consortium entity formed to create a label for rugs assuring consumers they had not been made by child labour.
