Girl Planting seeds

IKEA’s New Plan to Rent Furniture Shows How the Market Can Protect the Environment

IKEA recently announced a new program to rent out furniture. While the program will at first only be available in Switzerland and only for smaller objects like desks and chairs, the company plans to expand the project to other countries and larger objects, like entire kitchens. According to the Swedish furniture retailer, their goal is to become a more environmentally friendly business.  While these laudable goals may be part of the decision, IKEA most likely decided to pursue the new policy for the simple reason that it wants to achieve solid revenue. “Corporate social responsibility,” one of the favorite buzzterms of today’s business world, was not necessarily the reason. A much more likely explanation is that IKEA’s profits fell by a third last year, and it had to cut 7,500 jobs. Caring for the environment is “hip” or “woke” these days, so the Swedes seem to think it could be profitable for them to invest in such endeavors.  Read more...

 

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