In May, media reported that in the 1980’s the IKEA Group may have purchased products from Cuba that were made using prison labor. The IKEA Group took the allegations very seriously and initiated an investigation. In May 2012, Ernst & Young’s investigation services were engaged to conduct an independent investigation into the purchase practices in Cuba and in the former German Democratic Republic (GDR), as trade with Cuba was supposedly initiated by the former GDR state trade organization.
IKEA US President Michael Ward and IKEA of Sweden Sustainability Manager Jeanette Skjelmose met with U.S. lawmakers from the Cuban-American delegation in June 2012 to assure them the inquiry was a high priority.
This investigation has now been completed. The investigation concludes that the IKEA Group has never had any long-term business relations with suppliers in Cuba and that there is no evidence that the IKEA Group was aware of the possible use of political prisoners in Cuba.
Since May, approximately 20,000 pages of documents from the internal archives of the IKEA Group and 80,000 archived objects at German federal and state archives have been analysed. Around 90 individuals, both active and retired IKEA Group co-workers as well as witnesses from the former GDR have been interviewed. In addition, a public hotline was established and questionnaires to both active and former co-workers were distributed.
The report noted that 71 sofa suites – which included a sofa and two matching chairs – were produced in Cuba as samples for the IKEA Group. At least one set was sent to the former GDR for quality inspection by associates of the IKEA Group. The furniture did not meet quality requirements. There is no evidence that the IKEA Group received other products produced in Cuba.
Since 2000, the IKEA Group has had one of the most progressive and respected supplier codes of conduct in the world (IWAY) and conducts more than 1000 audits per year to confirm compliance by suppliers. IWAY explicitly prohibits the use of forced labor in production.
About IKEA Group
The IKEA vision is to create a better everyday life for the many people. Our business idea supports this vision by offering a wide range of well-designed, functional home furnishing products at prices so low that as many people as possible will be able to afford them. There are currently 298 IKEA Group stores in 26 countries. IKEA was founded in Sweden in 1943. The IKEA Group employs 131000 co-workers and had 655 million visitors during FY11. For more information, please visit www.IKEA.com