IKEA: global sourcing and the sustainable leather initiative

Abstract

The leather industry has traditionally been characterized by global operations across both developed and developing countries. Due to the long distance and contextual differences, there are numerous sustainability issues occurring along the global leather supply chain. Addressing these issues is both a responsibility and a challenge for multinational companies, especially in their global sourcing (GS) activities. This teaching case provides an example of implementing the sustainable leather initiative in the global sourcing process at IKEA. The case demonstrates IKEA’s sustainable leather initiative supported by its tailored GS strategy and GS structure and provides a benchmark of Sustainable GS for multinational companies and allows for a thorough discussion of how to implement a sustainability initiative while conducting GS. The case can be used to teach graduate/postgraduate in agricultural business, MBA and executive students on sustainable supply chain management and corporate social responsibility.