Ikea ‘deeply regrets’
Nov 7th, 2012 by josephluiz
Ikea recently released a public statement that it “…deeply regrets the use of political prisoners as forced labour in communist East Germany by some of its suppliers.” It seems that the statement was a PR ploy that’s aim was to maintain the positive image that many consumers associate with the brand. In order to do so Ikea wanted to separate its held image from this past event. Their public statement disconnected ‘modern’ Ikea from ‘old’ Ikea and placed the blame upon its suppliers at that time. Ikea showcased its concern by offers “…those former prisoners … [with] compensation,” and by reassuring consumers that Ikea now has one of “…the most rigorous codes of conduct for suppliers.”
This issue was 25-30 years prior, however it was still a threat to the brand image of Ikea today. It shows how decision made earlier in a firms life can manifest and cause issues later, even if it is 25 years ago. The decision to release this apology and compensation shows how valuable Ikeas image is to them.
http://www.bbc.co.uk/news/business-20356945