The CSR Newsletters are a freely-available resource generated as a dynamic complement to the textbook, Strategic Corporate Social Responsibility: Sustainable Value Creation.

To sign-up to receive the CSR Newsletters regularly during the fall and spring academic semesters, e-mail author David Chandler at david.chandler@ucdenver.edu.

Tuesday, April 15, 2008

Strategic CSR - IKEA

The press release in the url link below complements a recent Newsletter that highlighted the steps taken in Ireland to reduce the consumption of plastic bags. By implementing a tax on plastic bags, the Irish government was able to reduce plastic bag use by over 90%. In this press release, IKEA announces the results of the first year of its plan to minimize the number of plastic bags used by its customers and, again, reports a huge reduction:

“With the introduction of its leadership 'bag the plastic bag' program in March 2007, IKEA set a goal of reducing its US stores' plastic bag consumption by 50%; from 70 million to 35 million plastic bags in the first year. The call was to go reusable with the iconic IKEA blue bag for $.59 or use an alternative reusable bag. … Now it is one year since the program began and IKEA is overwhelmed with the stunning results; more than 92% of their customers said no more plastic bags!”

As a result of these initial results, the firm is extending its policy to remove all paper and plastic bags from its stores:

“This landmark program has now resulted in IKEA taking another step forward; as of October 1, 2008, IKEA will no longer offer plastic bags, and paper bags are not available in IKEA stores either. IKEA's consumer call-to-action is to use only reusable bags.”

The environmental impact of these policies has the potential to be very significant:

“According to the Environmental Protection Agency, the U.S. consumes over 380 billion plastic bags, sacks and wraps each year. Each year, Americans throw away some 100 billion polyethylene plastic bags, and less than one percent of them are recycled. … And it takes 14 billion trees to produce 10 billion grocery bags.”

While I am no fan of knee-jerk government intervention, the example of Ireland, combined with the IKEA results, indicates the potential for social policy to shift public behavior radically in positive ways. The pros and cons of pursuing such policies are discussed in the article in the second url below:

“… "choice architecture" - like the architecture of a well-designed public space - can coax (or herd) people in desirable directions at little or no cost to their autonomy and freedom. … By "specifying the kinds of situations in which people are least likely to make good choices" (eg, school cafeterias where they choose desserts over fruit) and structuring choices so as to counteract biases (eg, placing fruit more prominently than desserts), government and business can entice people to choose things that are better for them.”

The author argues against the tendency to try and overly-control, however, bringing up broad and important issues concerning the ability of government to limit individual freedom to choose:

“When you postulate a gap between people's wishes and their "real" requirements, you delegitimise the former. But you do not invalidate Lord Acton's adage about power corrupting.”

Take care
Dave

Bill Werther & David Chandler
Strategic Corporate Social Responsibility
© Sage Publications, 2006
http://www.sagepub.com/Werther


CSRwire Press Release
4.02.2008 - 09:04am ET
Press release from: IKEA
The Results are in...Over 92% of IKEA Customers Bagged the Plastic Bag!  As of October 2008, IKEA will no longer offer plastic or paper bags.
http://www.csrwire.com/News/11588.html

The perils of shaping choice.
By CHRISTOPHER CALDWELL
975 words
5 April 2008
Financial Times
Asia Ed1
Page 7
http://us.ft.com/ftgateway/superpage.ft?news_id=fto040420081442397238