How should Marianne darner respond to the Invitation to have an KEA representative appear on the German video program? The German video program that determined the child labor Issue was happening In Rug Industry In India will significantly harm Kike’s reputation as they were the direct suppliers to KEA. Besides, to compare the action of the Swedish program, German video program aggressively aimed at a specific company: KEA, which will only cause more serious issues.
Convention 138, adopted by ILL in 1973 and ratified by 120 entries states “if a supplier employed children under legal working age, the contract will be canceled”. As we saw earlier when there was a chemical issue in book shelves made by KEA and the problem was aired, KEA faced 20% drop in sales. Thus, we believe that Marianne Barber should reject the invitation to have an KEA representative appear on the German video program. 2. What actions should Marianne Barber take regarding KEA supply contract with Range exports? Range Exports is one of the major suppliers of KEA.
If KEA terminate the contract with Range exports, KEA will face big loss on sales and bear the cost to find other suppliers in order to fill up the gap by losing major supplier. So, it is better for KEA continually work with Range exports and give Range a final notice to hire underage workers. Simultaneously, KEA needs to set up a backup scenario that try to find other suppliers don’t have the child labor issue in India if the child labor issue is not being stopped in Range. Moreover, KEA could level up the investigation into Range reduces before sending them to the retail stores. . What long term strategy would you suggest she take regarding Kike’s continued operation In India? The long term strategy should be in compliance with Ethical and Moral values of the firm-KEA as a global leader in the furnishing industry should set CARS standards. First, KEA could collaborate with Regular Foundation and Save the Children Org to fix the bad image caused by child labor. And KEA should develop sustainability mindset of claim to every single supplier need to have a label certifying that the and-knotted carpets to which it was attached were made without the use of child labor.
In addition, KEA should form an investigating team for a responsibility of unannounced investigation on oversea manufacturing suppliers. Last, KEA could provide knowledge and skills support to educate carpet suppliers and Increase their efficiency and output, and help them avoid holing underage workers. However, If KEA has to change the suppliers, this would hamper their supply chain and can also effect in delay or loss in sales but still they will be well positioned in the market and
