Ikea Foundation

Foundations belong to the non-profit sector in which organizations typically serve a charitable or a social purpose. They create social benefits, also known as social capital. By creating social capital, non-profit organizations aim to solve an existing problem or issue in order to advance humanity in a certain way. An example of such is the IKEA Foundation.

Introduction to IKEA foundation

The IKEA Foundation (the Stichting IKEA Foundation) is a foundation founded by Ingvar Kamprad who is an owner of IKEA, a home furnishings company founded in 1943 in Sweden. The company's vision has been to offer good quality products at low prices so that everyone is able to afford them. At IKEA it is believed that this can make everyday life better as 'home is the most important place in the world and children its most important people' (IKEA, 2021). The IKEA Foundation was founded in 1982 and is independent of the IKEA company. It is funded by the INGKA Foundation, owner of the Ingka Group of companies.

The IKEA Foundation is a philanthropic organization.

The foundation's strategy mostly focuses on supporting non-profit partners to meet people's needs in the immediate aftermath of a crisis.

IKEA foundation objectives

The objectives of the IKEA Foundation are similar to the objectives of the IKEA company, to create a better everyday life for everyone (see Figure 1 below). That being said, the foundation's goal is to keep what the furnishings company has been trying to do. As Ingvar Kamprad said, it was founded to make sure that IKEA continues to be an independent company using some of its profits to help people in need long after he is not there.

Initially, the foundation focused on architecture and interior design. However, later on, it began to address broader societal issues such as child labor, lack of good education and sustainable income. Over the years, it has been expanding its objectives to improve the opportunities of children from different parts of the world.

Today the IKEA Foundation works together with strategic partners to help families in poverty across developing countries. The founder of the foundation said that since we all share basic needs such as a secure home, good health, a regular income, and a desire to keep our children safe and to see them get a good education and succeed in life, we have to make sure that everyone is provided with these necessities.

Additionally, the foundation focuses not only on children but also on young people, women and refugees who often struggle to find a job and earn a sustainable income. At IKEA Foundation it is believed that everyone deserves to access full opportunities and create a brighter future.

Besides reducing inequalities between people, the IKEA Foundation also focuses on protecting the planet. Due to global warming, our climate is changing which has an impact on many aspects of our lives. That is why the foundation tries to save the environment by focusing on sustainability.

Impact of IKEA donations

The IKEA donations have had an enormous impact on both people and the environment.

So far, they have funded six main programs (see Figure 2 below).

Climate action

One of the main goals of the IKEA Foundation is to reduce carbon emissions. The foundation works together with its partners to call on governments, businesses and organizations to protect the environment.

Owing to the $ 12 million donation, they can support an ecosystem of funders, businesses, financial institutions, policymakers and civil society organizations to enable the transition to a zero-carbon economy.

Renewable energy

Since people all around the world use energy on a daily basis, the IKEA Foundation works to provide them with solutions that do not destroy the environment. In doing so, it tries to make renewable energy more accessible, affordable, quicker and cleaner.

Because of the high prices, the majority of the African population are only able to afford small solar systems that power small home appliances. Thanks to the partnership, many farms and businesses have been provided with solar energy that can power larger machinery such as computers, fridges and agricultural equipment.

Agricultural livelihood

Because of global markets that focus on quantity instead of quality, farmers in regions such as East Africa and India are refrained from making profits and live in poverty. For this reason, the IKEA Foundation wants to change it and help them.

Additionally, as almost half of fruit and vegetables harvested there is lost before it is delivered to a customer, they help build local supply chains that reduce waste.

Employment and entrepreneurship

Although the current economy has generated wealth and employment, social and economic inequality is still present. Therefore, the IKEA Foundation is working to enable underprivileged people to earn income and lift their families out of poverty.

The foundation would provide additional financial and technical support to help them in the process. Therefore, besides reducing poverty, it would benefit the environment.

Refugee livelihood

Because of conflicts and persecution in their home countries, many people immigrate abroad. However, they tend to be denied earning a living and becoming self-sufficient. Therefore, the IKEA Foundation has decided to support them.

The research is expected to develop practical solutions to empower refugees so that they can afford a better life and future.

Special Initiatives and emergency response

The IKEA Foundations keeps an eye on emergencies and aims to respond to them by implementing its special initiatives. Emergencies such as conflicts, natural disasters and other happenings deprive many people of a normal life.

The donation is expected to support ongoing life-saving medical activities caused by the spread of COVID-19 in India.

Conclusion

Working with its non-profit partners, the IKEA Foundation has managed to support people all around the world. It has helped children and entrepreneurs in the developing world and helped to fight some environmental, health and social issues. For this reason, it can be concluded that the foundation's emergency partners are well placed to decide when and how to respond to crises and consequently, the IKEA Foundation's strategy is effective.