Corporate And Social Responsibility - How To De-Fuse A PR Bomb

Ikea, the Swedish manufacturer of flat-pack furniture and purveyor of Swedish meatballs, has been accused of using forced labour. It is the latest in a long line of major corporates and global brands that have ended up having to de-fuse a potential public relations bomb. Mark O'Shea from our Commerce and Technology Team looks at this in further detail.

In Ikea's case, the adverse publicity centres on Ikea's alleged, knowing use of East German political prisoners by some of Ikea's suppliers in the manufacture of Ikea products. Ikea engaged accountants Ernst & Young to investigate the matter.

A common problem

Other corporates, including some luxury brand owners, chocolate producers, and sporting, clothing and footwear manufacturers, have been accused, often with some justification albeit not always with their proven knowledge or complicity, of using or acquiescing in the use of forced and/or child and/or impoverished labour.