d).

The CSR strategies or practices

OVERVIEW OF IKEA AND ITS CORPORATE STRATEGY.

IKEA is a Sweden based international company operating in 37 countries, pioneered in

selling flat pack design furniture at affordable prices and currently recognized as the
world's largest furniture retailer. IKEA is named from the initials of the founder's name
and his nativity in Sweden as Ingvar Kamprad Elmtaryd Agunnaryd.IKEA was founded
by Ingvar Kamprad in 1943. Elmtaryd is the name of the farm where he was brought up
and Agunnaryd is his home parish.

The corporate structure of IKEA is quite complex and is categorized into Operations and
Franchising divisions .Operation division is run by a private Dutch company called Ingka
Holding which is owned by the Stitching Ingka foundation which is exempted from tax
and it is a non-profit foundation. The trademark and concept of IKEA is owned by Dutch
based Inter IKEA systems. The founder's view with regard to the basis for IKEA is to
take up social responsibility in a democratic way, which also involves symbolizing the
interests of ordinary people and avoids the designs, which are expensive and difficult to
produce even though they are easy to sell. The purpose of this company is to develop
the designs in the field of Architecture and interior designing, and recently it broadens
its purpose to donate for charitable causes.

IKEA's vision and basic goal is to generate a better life for the mass of people to
develop a niche market by producing marvelous, affordable and long lasting furniture
for the majority of the people. In order to achieve their goal, the key is cost cutting and
IKEA strongly believes that cost-consciousness is a major idea in their business and it is
considered as a "mortal sin" for them to waste the resource. As the company ensures
the affordability of ordinary people, IKEA stands on the side of the little person and this
creates a positive image for a company. IKEA also dreams idea of good capitalism that
profit-making business can be merged with an enduring social vision. This entails the
goal of achieving better future prospects for IKEA's customers and employees with an
impression that working for IKEA is to work for a better society as a contribution to a
better world.

The IKEA Group Sustainability Strategy for 2020 PEOPLE & PLANET POSITIVE
IKEA has been committed to sustainability for many years, and they are now taking the
next big step. Through their sustainability strategy, People & Planet Positive, they use
sustainability to drive innovation, transform their business, steer their investments and
unleash new business opportunities. It will enable their strength for their
competitiveness by securing long-term access to important raw materials, maintain and
develop their supplier base, deepen their relationships with co-workers and customers,
and increase productivity. It will help they to lead change in society. They believe that
sustainability should not be a luxury that few can afford or that people should have to
choose between design, function, quality, low price or sustainability. They will do their
utmost to be the leader in sustainable, affordable life at home by inspiring and enabling
customers to fulfills their needs and dreams at home. They will make more sustainable
products and solutions affordable, widely available and exciting. They believe that this
will benefit the environment and society and their customers - helping them save
money, save time and feel good. Sustainability at IKEA means ensuring environmental,
economic and social well-being for to- day and tomorrow. It means meeting the needs
of people and society, without compromising the ability of future generations to meet
their needs acting in the long-term interests of the many people and not just the few.
It is about living within the limits of the planet and protecting the environment. It
means promoting a strong, healthy, inclusive and just society where people can prosper
and fulfill their potential. Across our integrated value chain, we contribute to improving
the quality of life of people and communities and support a world that prospers within
the limits of one planet. They are committed to good working conditions and respect for
workers rights, to put more in than they take out, use resources with the utmost
efficiency and turn waste into resources. They promote renewable energy, safe
chemicals, responsible stewardship of forests, water and farmlands, and a fairer society
that respects human rights. That is what they mean by people and planet positive.
Togetherness, simplicity and leadership will be key to their success. They will use
sustainability as a driver of innovation and transformational change - from factory and
farm, to store, to customers homes and all the way to their products end of life - and
strive towards having a positive impact on people and the planet. As they deliver on this
strategy, they will try new approaches, stretch ourselves and possibly make mistakes
along the way. Nevertheless, they will do our best and they are committed to having a
positive impact on people and the planet. What could be more important?

They work with three change drivers that will transform our business - making it more
sustainable, driving growth, discovering new business opportunities and helping create
a better everyday life for the many people:

1. Inspire and enable millions of customers to live a more sustainable life at home. Take
the lead in developing and promoting products and solutions that help customers save
or generate energy, reduce or sort waste, use less or recycle water: at the lowest
possible price.

2. Strive for resource and energy independence. Securing long-term access to

sustainable raw materials, having a positive impact on the communities where they
source materials and using resources within the limits of the planet. Produce as much
renewable energy as the energy they consume and drive energy efficiency throughout
their value chain.

3. Take a lead in creating a better life for the people and communities impacted by their
business. Further extend their code of conduct throughout their value chain; be a good
neighbor, support human rights and act in the best interest of children.
The IKEA Group Sustainability Strategy for 2020 ENABLING CHANGE

This strategy, People & Planet Positive, is ambitious and far reaching, covering all
aspects of their business and value chain. To be able to transform their business and
become people and planet positive, they need to enable change throughout their
business by:

Transforming their business and moving towards being people and planet positive by
making sustainability a natural part of their everyday work.

By August 2017, 95% of IKEA co-workers state that sustainability is a natural part of
the everyday work.

Ensure improved knowledge, training and best practice sharing to enable all co-
workers to contribute to and actively challenge IKEA to become more sustainable. .

Ensure sustainability is included in all personal development and incentive schemes.

Enable our co-workers to live a more sustainable life at home by using their solutions
or knowledge for reducing energy, water and waste at home, through a dedicated
global project beginning in 2014.

Involving and engaging customers, co-workers and suppliers in their people and planet
positive journey through impactful, relevant and unique communication.

By August 2015, 70% of consumers view IKEA as a company that takes social and
environmental responsibility15

By August 2017, at least 95% of IKEA co-workers and 95% of their suppliers view
IKEA as a company that takes social and environmental responsibility.

By August 2020, IKEA seen as number one home furnishing retailer for operating in a
way that is better for people and the environment on each market and they see, on a
country basis, a minimum 3% increase in awareness annually on two strategic areas
related to People & Planet Positive topics.

Integrate sustainability in all IKEA communications channels. This includes

strengthening information at point of sale (in store and online) to provide ideas,
inspiration, knowledge, and smart solutions. .

Actively promote more sustainable products and solutions by increasing transparency

on how they were produced and their customer benefits. Communication tools that are
the most credible and relevant for their customers will be used; including third party
certification.

Perform regular, transparent and systematic reporting on progress to steer their

business and increase transparency and trust. This includes independent auditing and
verification of relevant tools and reports.

Transforming and growing their business through a combination of innovation and

investments that adds value for their customers and IKEA and help them become
people and planet positive.

Adopt innovative new technologies, solutions and thinking around clean energy,
water, resources and transport of people and goods across their operations and supply
chain to transform their business.

Invest in innovative technologies and companies that can deliver positive sustainability
and commercial benefits through various IKEA investment initiatives.

Every new IKEA Group store, office, distribution centre, or IKEA Industry Group
facility will be located, designed, equipped and operated to be the most sustainable
IKEA facility at that point in time.
Building collaborations and partnerships with other companies, suppliers, NGOs and UN
bodies to work towards becoming people and planet positive and contributing to change
in society.

Advocate and influence key stakeholders and policy development that supports
positive change in society, alongside the actions within our business20

Strive to be a good neighbor and establish long-term partnerships with local

communities where we operate; positively contributing to their economic, social and
environmental development. .

Together with the IKEA Foundation, enable their co-workers to share their knowledge,
skills and expertise with charities supported by the Foundation.
e) The csr strategies benefits

IKEA commitments Targets

Enabling change throughout our business to -By August 2017, 95% of IKEA co-workers state
become people and planet positive. that sustainability is a natural
part of the everyday work.
- By August 2017, at least 95% of IKEA co-workers
and 95% of their suppliers
View IKEA as a company that takes social and
environmental responsibility.
- By August 2020, IKEA seen as number one home
furnishing retailer for
operating in a way that is better for people and the
environment on each
market21 and they see, on a country basis, a
minimum 3% increase in awareness
annually on two strategic areas related to People &
Planet Positive topics
1) A more sustainable life at home.
Take the lead in developing and promoting -By August 2020, achieve more than a fourfold
products and solutions that enable customers to increase in sales from products and solutions
live a more sustainable life at home. inspiring and enabling customers to live a more
sustainable life at home.
- Take a lead in more sustainable food by enabling
and encouraging a balanced diet.
2) Resource and energy independence.
Strive for resource independence by using -By August 2020, they aim to source 100% of their
resources within the limits of the planet and by wood, paper and cardboard from more sustainable
encouraging all waste to be turned into resources. sources
- By August 2015, all cotton used will be sourced
from more sustainable sources, such as Better
Cotton. .
-By August 2015, all home furnishing materials,
including packaging, will be either made from
renewable, recyclable or recycled materials.
-By August 2020, 90% of their home furnishing
products will be more sustainable with
documented environmental improvements,
covering both resource use and product
functionality according to their sustainability
product scorecard.
Strive towards energy independence through - By August 2020, the IKEA Group will produce as
being a leader in renewable energy, and becoming much renewable energy as we consume in their
more energy efficient throughout their operations operations.
and supply chain. - Become 20% more energy efficient in their own
operations by August 2015 and encourage and
enable their direct suppliers to achieve the same
by August 2017.
3) A better life for people and communities.
Take a lead in contributing to a better life for - Maintain 100% IWAY approval of all suppliers of
people and communities impacted by their home furnishing and other key products and
business, placing human rights at the centre of services
everything they do. - Secure 100% IWAY approval for all national IKEA
Food, Indirect Material and Services and retail
suppliers within the scope of IWAY .
- Secure compliance to IWAY Musts at all sub-
suppliers of critical material and processes by
August 2015.
- Develop and implement a transparent and
reliable system for the responsible recruitment of
migrant workers at first tier suppliers in identified
critical areas by August 2017. by August 2017.
- Continuously identify and develop setups for
home based workers to improve working
conditions, protect labour rights and prevent child
labour. By August 2020, all home based workers
are transitioned into improved setups and part of
their handmade development programme.
f) The challenges of the Csr.

All about wood

Ikea is deeply indebted to wood. This year it used 13.56 million cubic metres of solid
wood and wood-based board materials, not including paper and packaging, meaning
Ikea alone uses almost 1% of all wood used commercially around the world.

Already the company says that all wood used in its products is sourced from suppliers
complying with its own Iway code of conduct. Now, the company says it is going step
further. It will become "forest positive" by 2020, meaning that, despite its continuing
high demand for timber, it intends its business to have an overall positive effect on the
world's forests. Integral to this approach is the commitment that it will be growing at
least as many trees as it uses to make products by 2020.

Crucially, it says it also intends to become one of, if not the biggest, user of certified
wood and recycled wood products in the world. It will quadruple the use of wood from
certified sources, translating into around 10 million cubic metres of wood by 2020. This
constitutes roughly half of all the wood used by Ikea across all its operations.

IKEA challenges ahead

Yet making this vision a reality will pose serious challenges. The company is hinging its
forests positive strategy almost entirely on its relationship with one global certification
scheme, the Forest Stewardship Council (FSC).

In 2012 Ikea increased the volume of solid wood from forests certified by the FSC from
16.2% to 22.6% and supported 13 WWF projects that aim to improve forest
management through FSC certification.

However the company actually failed to meet is 2012 targets of 35% of all solid wood
to be sourced from "preferred sources". Ikea says this was because of a significant
shortage of FSC-certified wood on the global markets.
"Only 7% of the world's forest areas are currently certified to FSC and standard which
clearly presents a supply problem, but we are working with our partners and our
suppliers to tackle this," says Steve Howard, Ikea's chief sustainability officer.

He believes that by throwing their considerable weight behind the FSC, the company
will be able to help the growth of FSC-certified wood supply, promote better forest
management and contribute to ending deforestation.

"I agree very strongly with the value of certification and the value of setting global
standards through multi-agency work," says Howard. "As a business we don't want to
be judge and jury over our own supply chain. In a busy world with extreme pressure on
resources we need get behind these processes and get standards in place everywhere."