Global Issues

* To examine an organization’s corporate social responsibility in dealing with issues that do not violate a country’s local laws, of which impact company’s global ethical standards.

* Corporate social responsibility – self-regulatory mechanism whereby a business monitors and ensures its active compliance with the spirit of the law, ethical standards, and international norms.

* To explore the social economic impact – both direct and indirect – of a company’s strategic decisions and culturally different environments.

* To explore the balance between the economic benefits of outsourcing and the strategic risks it may bring to a company’s brand image.

* Outsourcing – the contracting out of a business process to a third-party

http://yfsmagazine.com/2011/11/17/8-pros-and-cons-of-outsourcing-your-workforce/

* To examine the role of middle management in making operational decisions that have implications for broad global strategic issues.

Introduction

Mariane Bonner is faced with many tough decisions in such a short period of time at IKEA. While still growing in her position as the business area manager for carpets, the recent child labor findings in India have the potential to deter consumer purchasing from every IKEA product line. This could have a large economic impact on one of the largest furniture stores in the world.

* German broadcast decision

* Rangan Exports decision

* India decision

1. How should Mariane Bonner responded to the invitation for IKEA to have a representative appear on the upcoming broadcast of the German video program?

2. What actions should she take regarding the IKEA supply contract with Rangan export?

In regards to handling Rangan Exports, Bonner has two options to control the future of IKEA. Since Rangan Exports broke the supply contract with IKEA by using child labor, Bonner can decide to breach the contract and forego any further transactions or to reprimand Rangan...