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Ethical business practices play a significant role in determining the guidelines that a company uses when interacting with its stakeholders. Ethical business practices help an organization to gain a competitive advantage and stay ahead of the competitors. An organization need to implement and adopt ethical business practices for the long term growth and sustainability of the organizations (Ferrell et al., 2014). The business practices that are practiced by an organization help to enhance the brand image of the company in the mind of the customers. Thus, a company must adopt and implement ethical business practices to enhance the future growth and development. In this context, the present report describes the ethical business practices of IKEA. IKEA is a multinational group of companies that designs and sells ready-to-assemble furniture, appliances and home accessories. IKEA provides home furniture and other accessories of good design at reduced prices and thus large number of people can easily affords the products and services provided by IKEA. IKEA emphasizes on providing an environment where everyone is welcome to visit and hang up (Ferrell et al., 2014). Thus, the present report critically examines the ethical practices of IKEA on the basis of ethical theory. In addition to this, the report also provides recommendations to the company for improving its ethical business practices.
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