Ikea's global agenda

While in Bangkok, Jonathan Spampinato, Ikea Foundation’s head of communications and strategic planning, stressed that all the campaigns must be innovative and effective. This was the prerequisite for all donations, whether involving money, products or knowledge.

Local needs are factored in when the campaigns are launched by Ikea stores, which span 39 countries. In the countries where there are no stores, the foundation has contributed through 40 partners for projects in over 46 countries, including Myanmar, Indonesia and the Philippines. To date, contributions through the partners have amounted to 104 million euros (Bt3.94 billion). The campaign is now the sixth largest in Europe and the 14th in the world in terms of contribution.

 

EvaluatIon reports

To win donations, partners are required to come up with project planning and evaluation reports. They must sign contracts to show their accountability in the projects and then they must follow that with progress reports. 

“What you try to accomplish and what you accomplish is important. Funding will follow the reports and the reports will determine entitlements to future funding,” he said.

The UN High Commissioner for Refugees (UNHCR) is among the major partners. From the start, the organisation and Ikea have worked hand in hand to ensure the uniqueness of the projects. The first project involved a trip to refugee camps in Africa, to sound out what Ikea could help in improving health conditions.

Cheap, easy-to-use and able to stand different climates, utensils were among the answers, as most of the people eat with their hands, leading to health problems. 

Then workshops followed, involving the design team in Sweden. With the right design, the packing team brainstormed on how to transport a large volume of utensils in a limited space.

Ikea’s employees, vendors and customers are also extending help to its CSR activities carried out through 320 stores worldwide. 

Launched 12 years ago, a Soft Toys for Education Campaign has raised 67 million euros, with 20 million going to Asian countries. Launched last year, Brighter Lives for Refugees Campaign raised 7.7 million. For these projects, the foundation will donate 1 euro for every soft toy and light bulb sold during the campaigns. 

In Thailand, the Soft Toy Campaign ended on January 10, but the LED campaign will run until March 29. From 2011, when the store was first opened through 2013, over 230,000 toys have been sold, indicating the donation of 230,000 euros for Save the Children and Unicef. Over 50,000 toys were sold in 2014. Meanwhile, sales of the LED light bulbs skyrocketed by 233 per cent from the previous year when there was no campaign, ensuring sizeable donations to UNHCR.

According to Supharoek Wichianchot, sustainability manager for Ikea in Thailand, each year before the start of the campaigns, breakfasts were hosted for employees and vendors. They were briefed on the projects and encouraged to take a lead in buying the products.

“Customers are responding well to the campaigns,” Spampinato added.

He said Ikea’s CSR activities started in India, launched to protect child labour involved in cotton picking, as the store sourced clothing materials from that country.

Driven by the vision Happy with Ikea, the store is enticing employees and customers to do something good for the world—particularly children and the environment.

Its projects are now focusing on health, education, accommodation and sustainable family income.

“We believe we must help children all over the world, as they are the most important people in the world,” he said. “We’re also pushing our customers to be environmentalists, to pursue environmental agendas. It’s a good thing to help customers change the future and bridge the differences.”

 He noted that UNHCR, a key international organisation taking care of refugees numbering more than 50 million, is a major partner given that its funding has been insufficient. 

“Everybody wants to help neighbours next door. But what about neighbours far away?” he asked. “We didn’t tell customers to donate but we encouraged them to participate. Our cause is not to raise money but to raise awareness.”

Spampinato said it was possible to say that Ikea extended unlimited support to the foundation’s activities, with full support from the board of directors and shareholders. The company’s charter targets contributions of 2.5 per cent of net profit to CSR activities. The benchmarking by UK-based KPMG showed that the contribution in 2014 was equivalent to 3 per cent of profits. 

While saying that the money was one thing, he asserted that Ikea also ensured that the assisted projects were innovative. This was in line with the corporate shared value that quality is priority. With help from good suppliers, Ikea could offer quality prices without pressuring suppliers to reduce prices.