Corruption in Russia: IKEA’s Expansion to the East (A) Harvard Case Solution & Analysis

This whole predicament is useful in learning about business ethics as well as compliance coupled with governance, integrity management, responding to and preparing against corruption in the context of internationalization, and it allows to also briefly touching upon the problem of Corporate Social Responsibility (CSR). Instance (A) describes a challenge IKEA was facing, while trying to enter Russia in 2000. The company was preparing to start its first flagship store on the outskirts of Moscow, only the first of several projects that were planned. IKEA focused on advertising, but quickly faced an unexpected issue although after substantial investments in infrastructure and logistics. Its important ad campaign in the Moscow Metro failed since Russian customers found it "tasteless".

IKEA ended the campaign since it was far-fetched. What should Lennart Dahlgren and IKEA do? Was there any option to playing the game the Russian manner, and paying? IKEA's subsequent response to these challenges is explained in the first case on this topic and then it explains other new challenges related to corruption within IKEA and in its environment. Lastly, the question that is prompted by reading this case is if IKEA has the onus of social responsibility to tackle corruption on domestic level to form a stage for its own operation in Russia.

PUBLICATION DATE: May 10, 2016 PRODUCT #: ES1691-HCB-ENG

This is just an excerpt. This case is about LEADERSHIP & MANAGING PEOPLE

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Corruption in Russia: IKEA’s Expansion to the East (A)

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