The world is facing another kind of crisis. A crisis of rising inequality that is already affecting the lives of many millions of people. Even before the COVID-19 pandemic, we knew that issues like social injustice and climate change were affecting the people with the least, the most. The pandemic threatens to make this worse.
We’re present in many communities, and when those communities thrive, we do too. We recognise the challenges people are facing and the rapid changes in our communities – particularly where rights and opportunities are far from equal.
Guided by our values, we want to create lasting positive change in the communities where we are present. This means creating a fairer and more equal society, by growing our business in a fair and inclusive way.
Fair and inclusive growth leads to motivated co-workers, innovative meeting places, and resilient and empowered communities.
It’s part of our mission to ensure we put people at the heart of our business.
By 2030 our ambition is to improve the well-being of millions of people by becoming a truly people-centred company and employer.
In FY20, we:
- we reached 45 refugees within our job training and language skills initiatives in 3 countries in FY20. We will continue the initiative to support at least 2,500 refugees by 2022. The initiative was slowed down because of store closures due to Covid-19 during 2020
- we managed to complete 196 reviews against IWAY, the IKEA supplier code of conduct, to check social and environmental standards at suppliers, despite the Covid-19 situation
- continued partnerships with 3,240 social entrepreneurs and social businesses across 186 countries. This includes textile collections, sewing services, and last mile services
Respecting human rights
IKEA touches the lives of millions around the world and has long promised to stand by the side of the many people. This is true now more than ever. No matter where we operate in the world, we will respect human rights. We also contribute to safe, affordable and sustainable places to call home in the communities where we are present.
The size and scale of our business means we impact the lives of millions of people around the world. We have a responsibility to uphold the rights of all people impacted by our business: our co- workers, customers, workers in our supply chain, and the communities around us. We are committed to implementing the UN Guiding Principles on Business and Human Rights as the basis for our responsibility to respect human rights. We address human rights in many of our strategies, policies and processes including the Ingka Group Policy on Human Rights and Equality, and update these regularly in line with emerging risks and expectations.
Our approach starts with our co-workers. We are committed to providing decent, meaningful and engaging employment for every co-worker, and we stand up for equality. Everyone at Ingka Group should be treated fairly and we expect our co-workers to always uphold our company values.
The health and safety of everyone in contact with our business was a greater risk during the year due to Covid-19. We work hard to ensure co-worker and customer safety and have increased our focus on health and safety with suppliers and home delivery service providers.
Respecting and supporting children’s rights
Children’s rights are fundamental – to the world and to IKEA. Everything we do, as a business and as individuals, can impact children’s lives. This is why we continuously strive to integrate the Children’s Rights and Business Principles into our daily work. The Principles were launched in 2012 by Save the Children, the UN Global Compact, and UNICEF.
For us, the Principles mean:
- supporting fair work for young workers, parents and caregivers, while eliminating child labour entirely from our Ingka Group supply chain
- ensuring our IKEA stores and Ingka Centres meeting places are playful and safe spaces for children – for example, by providing Småland crèches at our stores and kid’s centres, and playgrounds and activity areas at our meeting places
- offering safe products for children, and marketing these appropriately
- contributing to a healthy environment for children to live in – both now and in the future – through our climate initiatives
- working together with others to strengthen child-friendly and connected neighbourhoods and cities
- reinforcing community and government efforts to respect children’s rights
Working with suppliers
Ingka Group has tens of thousands of suppliers. Regardless of whether our suppliers work in construction, security or cleaning, we expect them to comply with our standards – and this includes treating their co-workers fairly. So, we never tolerate child labour or any form of modern slavery, and we support fair and meaningful work for everyone in our supply chain – including vulnerable groups like young or migrant workers.
To help us maintain our standards throughout our supply chain, we use IWAY – the IKEA supplier code of conduct – which sets out the social and environmental requirements for IKEA Retail suppliers. We also partner with suppliers to help them meet our standards, and if we find they don’t improve over time, we stop working with them. In FY20 we began work with Inter IKEA Group to substantially update IWAY, clarifying requirements for animal welfare and ‘gig economy’ platforms.