Question

Using Carroll's pyramid of CSR to evaluate IKEA foundation's work.

Answer 1

Carroll's pyramid of CSR for evaluating IKEA foundation's work.

Caroll's pyramid of CSR activities incorporated by the business depicts the need and requirement of introducing and practicing of corporate social responsibility. It shows the need of the hour to think about the social welfare and sustainability for making an organization gain a stable position and to survive.

The IKEA Foundation's CSR activities are managed and led by Steve Howard who haplens to be one of the member in BOD as well as the Chief Sustainable Officer and CSR activist.
He tries best to incorporate CSR activities in ever activity or project the business starts. The various CSR activities initiated by IKEA which are in compliance with caroll's pyramid involve :

Economic Responsibility:
CSR does not altogether aim at social welfare but considers the well being of business also as its main priority.
Thus according to it the main responsibility of business is to maximize its profits so as to survive in the market and gain stability for expanding its operations. Thus the only way to benefit the business for it to operate in long run is to let it maximize its earnings.

In economical aspect IKEA has been successful in accomplishing the objective of maximizing earnings. It has incorporated such methods and ways of production which not only ease the workers but also reduce wastages through efficient utilization of resources , preventing over stocking or idle staff , resulting in cost reduction which automatically maximizes the profits.

Legal :
Caroll describes this CSR activity in terms of complying with the rules, regulations, laws and legality.

IKEA has tried its best to comply with every law applicable to its foundation. In fact its recognition and goodwill is a result of its ckear records in terns of legality and morality. It has always considered the wages act , the employee welfare policies , the minimum age to work , legal competition practices and health and safety act inorder to conduct operations and has never voilated any rule applicable to its business.

Ethical:
These as per Caroll includes acts that need to be in compliance with morality and should be ethical. This in other term means thatvthe business needs to think about social welfare and benefit to society.

IKEA has made it possible to separate the ethical and moral interests to that of their personal or organizational interest. It has introduced a clear mechanism as per which each interest is given a due attention and each of the interests are satisfied. The IKEA business has never let the personal or organisational interests to come in between or overshadow the ethical interest and welfare motive.
Tnis can be well reflected by the following activities undertaken :

Reduction in wastes and Recycling of used materials (saving non renewable resources )
Empowerment to employees specially women through keeping at place facilities such as separate cabins , private transport , early off etc. and Educating them through prividing necessary training and development.

Exception to rules of punctuality and regular for employees suffering from any ailment or personal family problems

Special treatment to pregnant women interms of leaves, wirking hours, days off and night shifts

Gender Equality and no diffetential pay system based on gender.

Reduction in energy consumption

Philanthropic :
This is considered as an important and widely recognised CSR activity of organizations where in as per Carroll's pyramid the business is supposed to provide or give back to the society what it has provided or compromised for it.

For IKEA philanthropic activities are an underlying reason of a company's sucess because philanthropy results in happy and overwhelmed customers. When customets see the business as a philanthropist their reliability , trust and faith wutnesses a rise by a large extend as they build this mentality about the corporation which will never think against them.
Thus IKEA has initiated undertake philanthropic activity as reflected by the following data:

IKEA has almost donated 7.7 million euro to a non profit welfare association called brighter lives which aims to provide shektor to refugees by building camps for them to stay.

IKEA has committed to lrovide a sum of about 1 million to the farmers of villages as a donation to grow their business and to incorporate such new practices which will enable to produce cotton through using less harmful chemical consumption and thus intriduce some eco friendly techniques.

IKEA prohibits the child labour and does not allow any child even with their consent to work in the ciroiration until the age of 18 is achieved.

Safe , good and healthy foood is provided to the workers at lower posts and not from well off families each saturday as a respect to their work and inturn acting as a source of motivation and well being

Recommendations of what IKEA can do better with respect to these policies:

Morality:

IKEA can introduce a new performance appraisal method wherein each employee will be paid as per the targets attained and the performance or output achieved. This will reduce discrimination among employees or any sentiments of bias towards a particular group.

This will ensure that the experienced and loyal employees committed towards organisation will not feel like they are being counted and treated like freshers.

The another CSR recommended to IKEA is women empowerment programs wherein there will be a separate recruitment policy for women to mame the organisation gender equal and provide wider opportunities to women

The pay should be equal for gender of any kind holding a specific position.

Thankyou

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