Our view on forced labour
Sustainability is part of how we work at IKEA, from developing products and sourcing materials to working with partners across the value chain. We focus on areas where we believe we can make the biggest difference: climate, nature, circularity, and a fair and equal society.
IKEA is committed to respecting human rights across the value chain, based on the UN Guiding Principles on Business and Human Rights (UNGPs) and the UN Children’s Rights and Business Principles. However, we do not hold all the answers. Only through working together with others can we influence meaningful changes and contribute to systemic improvements. We recognise our responsibility to address the impacts of our business on people, society and the environment. No matter where we operate, we do not accept any form of forced or bonded labour, anywhere in the IKEA value chain, be it at our own operations or operations in the IKEA value chain.
We integrate our objective to respect human rights into our long-term business priorities and set standards, requirements and expectations for the IKEA business stakeholders and ourselves. The minimum expectations we place on our business relationships are found in the IKEA supplier code of conduct IWAY and in the IKEA franchisee code of conduct IConduct.
Both IWAY and IConduct are based on internationally recognised standards and principles, such as the UN Guiding Principles on Business and Human Rights (UNGPs), the 10 Principles of the UN Global Compact, the UN Sustainable Development Goals (SDGs) and the ILO Centenary Declaration for the Future of Work, among others.
Supplier requirements and due diligence
We believe one of the key factors to reducing the risk of negative human rights impacts, including forced labour, is having long-term mutually beneficial partnerships with suppliers and service providers based on shared values. For example, the average length of the relationship between IKEA and our home furnishing suppliers is 11 years. This gives us the opportunity to continuously work with our business partners and together tackle social and systemic issues in the IKEA value chain.
IWAY, our code of conduct for suppliers, is the IKEA way of procuring products, services, materials and components. It sets clear requirements, expectations and ways of working for environmental, social and working conditions, as well as animal welfare, and is mandatory for all suppliers and service providers that work with IKEA.
We focus on developing and supporting our suppliers and service providers through everyday business activities. We have competent and experienced teams in social and environmental topics in many regions and countries around the world. They actively work with the IKEA suppliers close to the business operations.
Wherever we operate, we engage with our business partners to work and meet our mandatory requirements concerning working conditions, and social and environmental standards. To verify compliance with IWAY, we conduct announced and unannounced audits. Any warning signs of forced labour are immediately investigated, always taking into account what is in the best interest of impacted workers. When a case of forced labour is confirmed, we collaborate closely with the supplier to ensure the situation is meaningfully remediated and that workers are supported throughout the process.
If a supplier fails to comply with the IWAY requirements within the given timeframe and despite the support provided by IKEA, the supplier is phased out and the business agreement terminated. When there is a confirmed forced labour case, the business relationship is only terminated after ensuring that any impacted workers are not negatively impacted by the business termination or put at risk of falling back into forced labour. IKEA continues to monitor the case until it is fully remediated.
Business requirements placed on IKEA franchisees
IKEA is a franchise business. That means that many groups of companies work together under one IKEA brand.
Requirements expected from IKEA franchisees are described in IConduct – the IKEA franchisee code of conduct. IConduct provides us with a base to take actions aligned with the IKEA vision - to create a better everyday life for the many people.
The IKEA franchisees are accountable for being compliant with all applicable laws and regulations, including health and safety, anti-corruption, data privacy, environmental, and employment laws, regulations and others. In IConduct we outline all specific requirements to live up to in the area of forced or bonded labour, among other topics.
Where IConduct requirements exceed those of applicable laws and/or regulations, franchisees follow the requirements of IConduct. However, the applicable laws and regulations are followed if they impose standards that are contrary to and/or stricter than those set out under IConduct.
Partnerships
Eliminating forced labour from global supply chains asks for a common effort. We welcome the opportunity to work closely with other stakeholders and play an active role, along with others, in leading change.
One example is protecting vulnerable groups of migrant workers. The Leadership Group for Responsible Recruitment (LGRR) supports the Employer Pays Principle to eliminate recruitment fees being charged to workers anywhere in the world by 2026. In South-East Asia, we partner with the International Organisation for Migration (IOM) to promote the rights and well-being of migrant workers, employed across the IKEA supply chain. In 2024 IKEA Supply and IOM announced a new global partnership to promote the rights and well-being of migrant workers, employed across the IKEA supply chain.
We believe these types of initiatives, alongside dialogue and cooperation with our suppliers, governments and civil society, are crucial in the prevention of forced labour and respecting human rights. We will continue to focus our efforts and collaborate to create a movement towards working conditions and decent and meaningful work across industries. We acknowledge that in some areas and at some moments, this is a challenging journey. But by setting clear expectations, prioritising continuous development and working with others, we believe that we can contribute to a better everyday life and the respect for human rights.