Starting November 27, 2020, Swedish furniture giant IKEA will start its unique buy-back scheme. The idea is to allow customers to return IKEA products, receive a voucher in return for the exchange, then resell the furniture pieces at 50% of the original price. Spanning across 27 different countries, IKEA is trying to take a stand against the excessive consumption trends that Black Friday promotes. This scheme displays a prime example of how IKEA has increasingly involved itself in the humanitarian sector, and actively fights against environmental challenges, poverty and unsustainable living practices. IKEA’s second-hand furniture store initiative is just one example of these efforts.
How IKEA’s Second-Hand Furniture Store Initiative Works
IKEA plans on taking back unmodified, clean upholstery products. It will then resell these products in the AS-IS department or it will recycle them if it deems them unsellable. In late 2020, IKEA’s first entirely second-hand furniture opened in Eskilstuna, Sweden; the overarching purpose of the buy-back scheme and the second-hand store in Sweden is to push toward the company’s goal of becoming a completely circular and climate-positive business by 2030. Not only do these initiatives help the environment, but they also benefit people around the world in poverty. The staggering price drop on repurposed furniture will greatly benefit those who typically could not afford furniture pieces. Considering the great range of this global initiative, lower socioeconomic classes will greatly benefit from this second-hand furniture scheme.
IKEA’s Humanitarian Work
IKEA has been gradually increasing its presence in the humanitarian sector, from its support of organizations such as UNICEF and Save the Children to the opening of its own advocacy humanitarian organization called the IKEA Foundation. Grounded in the IKEA Foundation Ethical Framework, the company prioritizes cost-consciousness, responsibility, leadership, renewability and caring for people and the planet. The IKEA Foundation strongly supports many causes, such as:
- The Environment: IKEA is calling on governments, corporations and philanthropic groups to help reverse the damage that people have done to the environment.
- Agricultural Livelihoods: IKEA values planet-positive approaches to agriculture that regenerates resources, enhances biodiversity and improves farmers’ incomes.
- Renewable Energy: IKEA invests in renewable energy programs in parts of Africa and Asia that center their work around people living in poverty.
- Special Initiatives & Emergency Responses: The corporation provides unrestricted emergency funding to its partner organizations in Africa, Asia and the Middle East.
- Employment and Entrepreneurship: IKEA invests in programs that aid youth, women and refugees who face employment barriers in East Africa and South Asia. It also supports the expansion of existing and growing businesses.
Preventing Child Labor
One particularly inspiring cause of the IKEA Foundation is to eliminate and prevent child labor across the world. The IKEA Foundation contributed to the efforts of Save the Children and UNICEF to reach children in 25,000 villages in Pakistan and India, and as a result, was able to help 16 million at-risk children in 2017. Another example of IKEA’s passion for helping the less fortunate was in 2009 when it donated $48 million to UNICEF to promote the survival of India’s most vulnerable populations of women and children. It raised this large sum through an IKEA Social Initiative, which fights for every at-risk child’s right to a healthy childhood and secure education.
IKEA has shown its ability to generate substantial results through its various humanitarian initiatives. With a variety of motivations behind its advocacy actions, ranging from climate sustainability to child poverty, the furniture company has shown that it is using its corporate success to aid in global issues. The buy-back scheme is yet another example of the company utilizing its global presence; while the initiative spans 27 countries, many people of lower socioeconomic classes, as well as the environment, will benefit from IKEA’s second-hand furniture scheme.
– Hope Shourd