Post by account_disabled on Feb 27, 2024 23:07:06 GMT -6
The consequences of the COVID-19 pandemic are still being felt, and it seemed that 2022 would be a year of economic growth and stability. However, on February 24, Russia began an attack on Ukraine. Following this event, various economic measures have been taken by governments and companies, including the decision that IKEA is leaving Russia.
IKEA — a Swedish chain that sells ready-to-assemble furniture, household items and a warehouse-type space — is leaving Russia, however, its decision has opened a debate about economic sanctions on the European country.
IKEA leaves Russia, what are the consequences?
Since March 3, IKEA decided to suspend its activities in Russia and Belarus due to the war with Ukraine, however, this company's decision will have a direct impact on approximately 15 thousand workers.
IKEA stated in a statement that its decision to temporarily suspend its operations in Russia and Belarus is due to:
The war is having a strong human impact.
It is resulting in serious disruptions in the supply chain.
Modify the conditions for trading.
The devastating war in Ukraine is a human tragedy and Changsha Mobile Number List our deepest empathy and concern is with the millions of people affected.
The immediate actions of Inter IKEA Group and Ingka Group have been to support the personal safety of Ikea co-workers and their families, and we will continue to do so.
IKEA statement .
Ikea leaves Russia
The decisions of the Scandinavian corporation have been considered according to their reports, and supported in the long term. IKEA is leaving Russia, and it is also accompanied by other important decisions such as:
Donation of 20 million euros : Through the IKEA foundation, this donation is intended for humanitarian aid to those displaced by the war conflict, responding to a call from the United Nations Refugee Agency (UNHCR).
Jobs: The company states that they have "ensured stability of employment and income for the immediate future and provided support to these (workers) and their families in the region."
Is it a responsible decision?
The economic sanctions on Russia are intended to pressure the country to desist from its attacks on Ukraine, a strategy that has already been used in the past. In particular to end the USSR (Union of Soviet Socialist Republics).
The objective of financial economic sanctions is to deprive the enemy of the economic resources it needs to keep its economy functioning and, at the same time, be able to finance armed confrontation.
Armando Jiménez San Vicente , Director of the Master's Degree in Geopolitics, Competitiveness and Sustainable Development, Ortega y Gasset University and Research Institute
Although this has been the orientation of economic sanctions by various countries. Companies follow another logic, among them is indeed the condemnation of violent actions, but also safeguarding the safety of their collaborators and their assets.
IKEA leaves Russia
In the case of IKEA, it is true that more than 15 thousand Russian workers will be left without jobs and this implies difficulties for their survival; However, problems with supply chains also make it impossible for the company to continue its operations.
Furthermore, these measures appeal to a humanitarian sense of ceasefire and in light of this, Corporate Social Responsibility ( CSR ) serves as an excellent guide, since by taking into account business values and the impact of companies on society, Decisions can be more in line with the business mission.
CSR guides corporate behavior, which has effects not only on stakeholders and shareholders, but also on the entire economy.
When a corporation acts in an ethical and socially responsible manner in its business decisions and strategic planning, such a corporation will be more sustainable and will even provide guidelines for action as in the case of IKEA.
IKEA — a Swedish chain that sells ready-to-assemble furniture, household items and a warehouse-type space — is leaving Russia, however, its decision has opened a debate about economic sanctions on the European country.
IKEA leaves Russia, what are the consequences?
Since March 3, IKEA decided to suspend its activities in Russia and Belarus due to the war with Ukraine, however, this company's decision will have a direct impact on approximately 15 thousand workers.
IKEA stated in a statement that its decision to temporarily suspend its operations in Russia and Belarus is due to:
The war is having a strong human impact.
It is resulting in serious disruptions in the supply chain.
Modify the conditions for trading.
The devastating war in Ukraine is a human tragedy and Changsha Mobile Number List our deepest empathy and concern is with the millions of people affected.
The immediate actions of Inter IKEA Group and Ingka Group have been to support the personal safety of Ikea co-workers and their families, and we will continue to do so.
IKEA statement .
Ikea leaves Russia
The decisions of the Scandinavian corporation have been considered according to their reports, and supported in the long term. IKEA is leaving Russia, and it is also accompanied by other important decisions such as:
Donation of 20 million euros : Through the IKEA foundation, this donation is intended for humanitarian aid to those displaced by the war conflict, responding to a call from the United Nations Refugee Agency (UNHCR).
Jobs: The company states that they have "ensured stability of employment and income for the immediate future and provided support to these (workers) and their families in the region."
Is it a responsible decision?
The economic sanctions on Russia are intended to pressure the country to desist from its attacks on Ukraine, a strategy that has already been used in the past. In particular to end the USSR (Union of Soviet Socialist Republics).
The objective of financial economic sanctions is to deprive the enemy of the economic resources it needs to keep its economy functioning and, at the same time, be able to finance armed confrontation.
Armando Jiménez San Vicente , Director of the Master's Degree in Geopolitics, Competitiveness and Sustainable Development, Ortega y Gasset University and Research Institute
Although this has been the orientation of economic sanctions by various countries. Companies follow another logic, among them is indeed the condemnation of violent actions, but also safeguarding the safety of their collaborators and their assets.
IKEA leaves Russia
In the case of IKEA, it is true that more than 15 thousand Russian workers will be left without jobs and this implies difficulties for their survival; However, problems with supply chains also make it impossible for the company to continue its operations.
Furthermore, these measures appeal to a humanitarian sense of ceasefire and in light of this, Corporate Social Responsibility ( CSR ) serves as an excellent guide, since by taking into account business values and the impact of companies on society, Decisions can be more in line with the business mission.
CSR guides corporate behavior, which has effects not only on stakeholders and shareholders, but also on the entire economy.
When a corporation acts in an ethical and socially responsible manner in its business decisions and strategic planning, such a corporation will be more sustainable and will even provide guidelines for action as in the case of IKEA.