Question

In: Accounting

•“The Swedish company IKEA, the world’s largest furniture and home furnishings retailer, has adopted a global...

•“The Swedish company IKEA, the world’s largest furniture and home furnishings retailer, has adopted a global corporate policy that prohibits the use of old-growth forest wood or tropical wood in its furniture. All timber must come from sustainably managed forests. IKEA has eliminated the use of chlorine in its catalog paper; uses 100 percent recycled paper fibers, and is committed to eliminating waste in its retail stores. The ‘Trash is Cash’ program has transformed the thinking of retail store workers to see trash as a revenue-generating resource.”

Identify and comment on the importance of each of the environmental impacts described in the following passage:

a.Eliminating chlorine in catalog paper.

b.Eliminating waste in retail stores.

c.“Trash is Cash” program

please answer this question as soon as you can

Solutions

Expert Solution

IKEA has adopted a corporate policy globally prohibiting the use of old forest wood or tropical wood in furniture, which shows that the company's care towards environment protection and preservation. It believes in corporate social responsibility aiming that a company grows because of the resources provided by the nature and in return the company should also sustain the environment.

The environmental impacts which can be analyzed from the passage is Reuse, Reduce and Recycle.

a. Eliminating chlorine in catalog paper.

The impact which IKEA is trying to create over here is Reuse the environmental resources. Chlorine is a toxic chemical, which used in paper makes it difficult to recycle it again. Due to this, Chlorine free paper would be easy to recycle. Thereby, reusing the existing paper and not cutting new trees for making paper would help achieve its goal of environment protection.

b. Eliminating waste in retail stores.

Reduce is the environmental impact which the company is trying to create. For environmental protection recycling is not only an important step but also to reduce the waste is equally important. If waste is not created then there would be no need only to recycle. Because of this reason IKEA is committed to eliminate waste in all its stores.

c."Trash is cash" program.

The environmental impact that the company is trying to create over here is Recycle. The company would save on its cost if it could recycle the old wood rather than buying complete new wood for making furniture. Recycling would have its own cost but it would still be lower than buying a new one. Due to this reason, IKEA has named its recycling program as "Cash is Trash".


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