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Posts by xinzhan
Name: beyce
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xinzhan   
Apr 13, 2019
Undergraduate / Compare and Evaluate between IKEA and Apple [2]

two big companies comparison



Currently, a business model called Corporate Social Responsibility (CSR) which is motivating the company to be socially accountable to itself and the public is accepted by more and more multinational companies. Caramela (2018) defines CSR as an approach for corporations to take social and environmental responsibility during business operations, which can help the companies demonstrate company's corporate citizenship and keep the corporation away from external threat surrounds the corporation. In the current social environment, the primary purpose of companies formulate the CSR policies is to guarantee that their product is safe and keep sustainability. In this essay, the IKEA company (IKEA) and the Apple company (Apple) offer demonstrations about what they did in these CSR aspects. IKEA is the largest and the valuable brand with worth over 18 billion dollars furniture retailer, operating 389 stores in present 47 countries (Statista,2019a). The largest technology multinational corporation in the world, Apple, have reached 950 billion dollars sales from 1976 to 2018 (Statista, 2019b). This essay will compare and contrast two companies' CSR policies, particularly in product safety and sustainability strategy.

To begin with, both IKEA and Apple focus on product safety. As the largest furniture retailer, IKEA committed to providing affordable products while guaranteeing product quality and safety (IKEA, 2019). In order to realize this purpose, they formulate the strict rules and the standers on the markets and follow the requirements seriously even go beyond these rules (IKEA, 2019). Additionally, IKEA owns two test labs, which test the products in wide range of areas by using different standers, to minimize the potential safety risks and confirm that the best material can be used (IKEA, 2019). Finally, when it comes to chemicals, it only use the chemicals needed in order to keep the products away from harmful chemicals (IKEA, 2019). As for Apple, the strict rules are also set by Apple for the materials they would use, which also go beyond these during operation (Apple, 2019a). Additionally, different with IKEA's labs, Apple built the lab not only to test the equality and safety but also to use hazard and risk assessment tools to find safe materials and understand the effect on human and the planet (Apple, 2019a). In the end, Apple formed the Green Chemistry Advisory Board composed of researchers and academics, aiming to find innovative approaches to minimize toxins from the supply chain (Apple, 2019a). In summary, both two firms focus on how to create a safe product and set rules to ensure these. However, Apple formed an institution to research and study these, which is a better way in this filed.

The second part of CSR towards sustainability which two companies focused. As for IKEA, it launched a program called The People and Positive strategy which take measures to improve health and reduce humanity's impact to the planet (IKEA, 2017). In addition, in order to promote the use of renewable energy, about 750,00 solar panels were installed on buildings which power to company operations and customers (IKEA, 2017). At the moment, IKEA made a pledge to invest £471m in this area in the COP21 and vowed to be the net exporter of green energy by 2020 (The Guardian, 2016). When it comes to Apple, they achieve the goal of energy use by recycling the old devices, through the program called Apple GiveBack (Apple, 2019b). Daisy, a robot in this program, take apart old devices, remove and chose components which can be reused in the new devices to reduce resources (Apple, 2019b). Comparing with IKEA's renewable energy strategy, Apple has already powered by 100 percent green energy, which has already beyond other multinational corporation such as IKEA (TechLife News, 2018). Though from the new Apple park headquarters to its distribution centers and retail stores have used the 100 percent green power, it cannot involve the suppliers and manufacturers (TechLife News, 2018). To sum up, they are trying to achieve sustainability through different approaches in recycle devices and renewable resources. In these aspects, comparing with IKEA's unrealized strategies, Apple does set an excellent example not only on strategy but also carried out for multinational's CSR.

From the information above, both IKEA and Apple have paid more attention to product safety and sustainability. For the product safety, through two companies have made own efforts such as formulating the strict rules, test on the lab and research on chemical materials, Apple do those better than IKEA. Apple invests more money and spends more time to analyze and research. When it comes to sustainability, it can be concluded that Apple's strategies are more practical and feasible than what IKEA put forward. In conclusion, form what Apple and IKEA do for the CSR, it seems to offer some suggestions for all of the multinational companies about how should they do on the product safety and sustainability. Only all of the companies take CSR responsibility actively can this planet be more Stability and harmony.
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