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The Environmental Responsibility Of Ikea Corporation Tourism Essay

IKEA shareholders are intended to improve and strengthen IKEA image as an environmental conscious corporation and hire Neway Consultancy to figure it out. Building a park is a good way of representing IKEA environmental friendly policy. IKEA will need 2 years to complete this project. In phase 1, committee board has to be form to ensure the project is heading the right way and doing it the proper way. It ensures that the design of park is accepted by community and materials and vehicles used in building the park adhere to the environment policy requirement. In phase 2, construction will begin after the design for the park has been confirmed and effort is putting in to reduce the disturbance for the local community. Publicity will be placed nearby construction site to build curiosity among the community towards the project. When the park is almost complete, phase 3 is taken into action by evaluating the community responds towards the project and further modified the park to meet stakeholders’ requirements. Phase 4 would be handling of the park to the government to continue for maintenance of the park. Phase 5 is the launching of the park and constant maintenance of the park.

Challenges faces by IKEA are the scarce area in major city where the park chosen to build. There may be lack of manpower in completing the park in a short time. To speed up the completion of the park, relocation of plant from other places will cause environment problem to existing ecosystem.

The benefits of stakeholder are getting a place where they could relax during their after working time, reduce urban heat island effect to the city, provide fresh air to the city and filter the polluted air.

The benefits to IKEA are the public awareness towards the importance of protecting the environment shown by IKEA. It attracts tourist and community to visit the park and recognize IKEA as an environmental friendly corporation. It also helps to increase the consumer visit to IKEA through the publicity from the park.

Content

1. Introduction: 4

2. Environmental Aspect 4

3. Action Plan 4

Phase 1 – Formation of the Committee Board 5

Phase 2 – Implementation of the Propose Plan 5

Phase 3 – Outcomes Evaluation 6

Phase 4 - Accountability 6

Phase 5 – Sustainability Planning 6

4. Challenges to Implementation 6

Hard to obtain suitable land 6

Moving existing plant from other area will create more damage than good 7

Labour is hard to find 7

5. Benefits to the stakeholder 7

A place to relax 7

Help reduce global warming 7

Contribution of attribute 7

6. Benefits to Ikea 7

7. Conclusion 8

8. Reference List: 9

9. Appendix: Authorship Listing 10

Introduction

Neway Consultancy is a well-established company which help to guide their clients on their goal and providing workable solution. It is hired by IKEA to suggest ways to improve its social performance and corporate citizenship. As IKEA is an environmentally-conscious company which looking forward to fulfil their environmental policy, IKEA could build an eco-friendly recreation park nearby its warehouse stores.

Environmental Aspect

This proposal covers the environmental aspect of social performance for the sake of the stakeholders. Environmental aspect is defined as an element of the organization’s activities, products or services that can interact with the environment. (Dr D. Ganguly) The modern society expected more from a company which not merely make profits, but also contribute to the environment. (IKEA environmental and social issues, 2001). Therefore IKEA makes effort to the environment. This will gain respect from the people and earn good credibility. Thus, society will support IKEA more. The stakeholders related to this proposal are the customers, workers and society. Corporate responsibility of IKEA is to ensure a green and healthy environment for them.

IKEA new park will be located in an area where the development is immense and there are almost no parks in that area. In this proposal, our targeting area is in Kuala Lumpur, Malaysia where there is full of office building and malls that fully occupied. Park is a pollution-free area where citizens in the busy city could temporary escapes from their busy lifestyle and enjoy the flora and fauna. It also provides fresher and cleaner air from the planted trees and reduces the global warming and island heat effect.

Action Plan

To put this proposal into practical, it requires 5 phases to execute the plan in providing community with a healthy environment. This proposal timeframe would take approximately 2 years to complete.

Phase one: formation of the committee board

Phase one of the projects would take roughly half a year to be completed.

1) Selection of specialists from different fields to form a committee board

a) To search and monitor for the most suitable land to build eco-friendly park

b) To negotiate with the land owner for the confirmation of the land

c) To do research and select few established and award-winning architecture and landscape companies to plan and design the park to fulfil the requirements for eco-friendly purpose. This is to ensure better quality of the design.

d) To check and monitor the progress of the park to ensure that the plan and design purpose of the architecture team wouldn’t straying out from the goal set by IKEA. This is to minimize the chances of failure and wasting the resources. The criteria of eco-friendly park such as provide recycle bins in the park, planting new trees frequently, park landscaping to reduce soil erosion, uses energy saving products and so on. (National Association of RV Parks & Campgrounds. 2010)

e) To choose the best and most eco-friendly design from each of the company and publish to the public for voting. This will encourage the participation of the public in giving ideas for the best interest to the project. At the same time, IKEA can gain free publicity as this will be the hot topics among the public when they aware of this huge projects.

f) To communicate with the government, NGO and environmental bodies for their support and participation in this project. This helps to further strengthen the belief and support of the community towards the project.

Phase 2: Implementation of the propose plan

The implementation of the propose plan would take roughly a year to complete.

1) To fence the area surrounding the park so that no trespasser would disturbing the ongoing construction activity.

2) To start the construction activities. Committee board need to ensure that the carbon footprint due to the construction activities reducing to the maximum. The vehicle of the supplier and contractor must adhere to the emission regulation in the policy set by IKEA.

3) Publicity in the mass media of the creation of the park. This helps raise awareness of the public, get attention, and build a green and positive image for IKEA. Leaflet and brochure printed in recycling eco-friendly paper. Banner surround the construction site printed with eco-friendly ink. Environment friendly fertilizer used to plant the greens trees and plants. The messages of going green need to be deliver to the public.

Phase 3: evaluation of the successful of the project before launching

Phase 3 will be continuing for 3 months.

1) To evaluate the public respond towards the pre-launching of the eco-friendly park. The opinion of the public is important for the committee board to evaluate public satisfaction towards IKEA’s project in building the park. From there, IKEA can gather the data to know how well their promotion strategies for the park. Public feedbacks will be reviewed for the improvement of the park.

Phase 4: accountability of the park

Phase 4 will be done in the last 3 months.

IKEA will sign an agreement with the government to give power for maintaining the park. IKEA may constantly provide fund every year to support and improve the facilities in the park. IKEA will also organize environmental activities in the park to raise awareness and educate the public the importance to protect the environment.

Phase 5: maintain the sustainability of the park towards the nature

1) Launching of the eco-friendly park

2) The plants in the parks will self sustain under the normal condition provided that the gardener water it during drought and security guards will be employed to help govern the park from vandalism.

3) To interact and meeting with government for the problem and solution that occur in the park every 6 months.

4) To provide shuttle bus from the IKEA mall to the park. This is to provide the convenient for the stakeholders.

Challenges and risks of implementation

1) It is very hard to get a suitable land around the city centre and need strong negotiation to get the best price. The land in the city centre are expensive as they consider as “golden” area which can use to earn lot of profits by building commercial centre, condominium, and malls. The risk is that IKEA might not suitable land in the nearby the community area.

2) Searching for the variety of trees and plants to plant in the park. As the timeframe for is a quite short to implement the whole project, big trees and other plant may needed to be shift from other. This may create more harm to existing environment.

3) The park needs to be finished constructing in 2 years time, so the labour issue create problem. When the time to build is short, more labour needed than usual to meet the deadline. Workers need to be imported from neighbouring country to cut down the labour cost. Their working permit is a big challenge that needs to be settled.

Benefits to the stakeholder

After implementation of the proposal, these are the benefits that the stakeholders can get.

1) A place to relax the mind and spend time in natural environment. In the city centre, the community can hardly see something green. Skyscrapers are more familiar for them. They spend more time in the mall. So the park is a place where they can get near to the nature. (What is a recreational eco-park, 2009)

2) Reduce the global warming effect. The burning of fossils fuels in industry area or even from car has produce greenhouse gases like carbon dioxide. By creating a park, the trees and plants can produce oxygen and use up carbon dioxide, so this can reduce greenhouse gases and reduce global warming. (A.Farrar, 2007).

3) Reflection of the incorporation of the local community. During the voting of the design, local community can present of the cultural diversity value into the park. This allows the stakeholders to contribute in the attribute of the park and feel about their contribution in the park. (What is a recreational eco-park, 2009)

Benefits to the IKEA

1) A project to show environment responsibility to increase its social performance and corporate citizenship. This helps to sustain the natural habitat and at the same time create a positive and green image for IKEA. (What is a recreational eco-park, 2009)

2) Attraction for local community and tourists. (What is a recreational eco-park, 2009) Local community will be attracted to spend their time with their family in the green environment while tourists can visit to explore the uniqueness of the park as shuttle bus will be provided from the mall

3) Increase in the customers that visit to IKEA mall and thus increase the chances people spending money in IKEA. Customers can park their car in the mall and visit to the park before and after shopping.

Conclusion

The success in this proposal can brings improvement to the social responsibility and corporate citizenship towards IKEA. This fulfils the goal of IKEA in working in this project as the eco-friendly park brings positive impact for IKEA and its stakeholders.

(1500 Words)

References

(A.Farrar, 2007).

Amy Farrar.2007. Global Warming. 112 pages. ISBN 1599288591.ABDO group.

Crexcursions recreational eco-park. What is a recreational eco-park. 2009. http://www.crexcursions.com/eco-park-development/recrecreational_eco-park_definition/(Accessed 5 May 2010)

Dr D. Ganguly. Info Crux. Environmental Aspect. http://environment.infocrux.com/Environmental-Aspects.html (Accessed 4 May 2010)

IKEA environmental and social issues. 2001.http://www.pvdatabase.org/pdf/IKEA2.pdf (Accessed 4 May 2010)

National Association of RV Parks & Campgrounds. 2010. Plant it green. http://www.arvc.org/planItGreen.aspx (Accessed 4 May 2010)

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