while i’m sure that, as you say, most of IKEA’s decision was related to purely economic considerations, i like to think that some of it was done on an ethical basis as well. every little bit of ethical behaviour on the part of multinationals needs to be applauded.

Let’s hope so.

Corruption is downright ugly, but unfortunately, it will only be eliminated when companies like Ikea take a stand.

Hi Brad,

Interesting question.

I suppose that attitudes (and subsequently common practices) regarding matters involving proper governance in terms of government administration and business management would vary to some degree, and that cultural factors, along with (potentially) religious factors, may certainly have a considerable degree of influence in this regard.

Hi Mikael,

Unfortunately, I would think that you would be right, and that practices at an administrative level of government will not be changed overnight.

Indeed, the elimination of these types of practices, particularly in Russia and any other countries where they have been an unfortunate part of the way business is done for such a long period of time, will only be eradicated by a sustained, long term effort on the part of the leaders of the country concerned.

Hi Mark,

I will agree with you there – if as a result of corruption related practices, it is not possible for firms like Ikea to earn a satisfactory return on investment without compromising on their basic ethical principles, then they should not pursue future expansion in the country.

Hi Fred,

Unfortunately, in the case of Russia, these types of ugly practices seem to have become entrenched and a most unfortunate part of business life.

I am glad that Ikea has stood up to it, but I would think that in the majority of cases, only very large multi-nationals, with a reputation to defend, would have the courage to stand up against these types of practices.

In Ikea’s case, I would certainly have thought that any benefit derived from paying bribes in terms of ease of doing business in Russia would have been more than offset by the costs of such an action in terms of global corporate reputation.

But unfortunately, I would imagine that cases like Ikea would prove to be the exception rather than the rule, and that few other businesses wishing to operate within Russia would have the courage to make such a stand in the face of corrupt practices.

Hi Bill,

I am surprised to hear that about Texas.

Not having ever been to America myself, I guess I am not really in a great position to make informed comment about business practices in your country. Nevertheless, I certainly would have thought that conditions within the business environment across the majority of areas in the United States would have been pretty good in this regard, and I am surprised to hear that this is obviously not the case in some areas.

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Hey, Karen, “… MEN across the globe.”?

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Not that I applaud it but like poverty it is not something that is easily changed.

Mikael

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