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Ikea Foundation

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Business Studies

Today, our goal with the IKEA Foundation is in keeping with exactly what we've always tried to do as a home furnishings company - create a better everyday life for as many people as possible around the world.

- Ingvar Kamprad, founder of IKEA and the 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.

To find out more about non-profit businesses, read our explanation about non-profit.

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.

Philanthropic organizations are non-profit, non-governmental organizations that use donated assets and income to provide social services and create social capital. They can take the form of community foundations or charitable trusts.

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. 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:

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.

Partnering with ClimateWorks Foundation, they work together to accelerate climate action in Indonesia focusing on supporting ambitious, transparent, and measurable policy progress in the economic sectors which use the most energy such as transportation, buildings, appliances, and heavy industries.

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.

In 2021 the IKEA Foundation renewed its partnership with the Access to Energy Institute (A2EI) to provide people in Africa with solar energy.

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.

The Foundation's partnership with Enviu supports social entrepreneurs in Africa and India in creating local markets to enable families to earn a sustainable income and afford a better life.

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.

In 2021 it launched the Green Entrepreneurship Initiative owing to which chosen organizations would receive a grant of up to € 1.5 million to implement their programs.

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 livelihoods

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 Foundation funded research by the Refugee Studies Center at the University of Oxford to investigate the best ways to provide a solution to this issue.

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.

Because of the healthcare challenges in India caused by the COVID-19 pandemic, the foundation donated € 3 million to Médecins Sans Frontières (MSF), an international humanitarian medical non-governmental organization.

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.

Ikea Foundation - Key takeaways

  • The IKEA Foundation is a foundation founded by Ingvar Kamprad who is an owner of IKEA, a home furnishings company founded in 1943 in Sweden.
  • It was founded in 1982 and is independent from the IKEA company. It is funded by the INGKA Foundation.
  • The IKEA Foundation is a philanthropic organization.
  • The foundation addresses issues such as child labor, lack of good education and sustainable income.
  • It works to provide access to full opportunities and create a brighter future for everyone and protect the environment.
  • The donations of the IKEA Foundation has had an impact on a variety of aspects.
  • The main six programs funded by the foundation are climate action, renewable energy, agricultural livelihoods, employment and entrepreneurship, refugee livelihoods, and special initiatives and emergency response.

Ikea Foundation

The IKEA Foundation was founded by Ingvar Kamprad who is an owner of IKEA, a home furnishings company founded in 1943 in Sweden.

The IKEA Foundation was founded in 1982.

The foundation helps families in poverty across developing countries to fulfill their basic needs such as a secure home, good health, a regular income, and a desire to keep their children safe and to see them get a good education and succeed in life. Additionally, it focuses on young people, women and refugees who often struggle to find a job and earn a sustainable income as at IKEA Foundation it is believed that everyone deserves to access full opportunities and create a brighter future. Lastly, the foundation's objective is to protect the planet and live sustainably.

The main six programmes funded by the foundation are climate action, renewable energy, agricultural livelihoods, employment and entrepreneurship, refugee livelihoods, and special initiatives and emergency response.

Final Ikea Foundation Quiz

Question

What is the full name of the IKEA Foundation?

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Answer

Stichting IKEA Foundation

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Question

Who founded the IKEA Foundation?

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Answer

Ingvar Kamprad

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Question

Is the IKEA Foundation independent from the IKEA company?

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Answer

Yes

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Question

When was the IKEA Foundation founded?

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Answer

1982

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Question

According to its founder, why was the IKEA Foundation founded?


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Answer

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.

Show question

Question

According to Ingvar Kamprad, what are the basic needs we all share?


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Answer

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

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Question

What are the objectives of the IKEA Foundation?


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Answer

  • To help families in poverty across developing countries to fulfil their basic needs such as a secure home, good health, a regular income, and a desire to keep their children safe and to see them get a good education and succeed in life
  • To help young people, women and refugees who often struggle to find a job and earn a sustainable income
  • To to protect the planet


Show question

Question

What are the six programs funded by the IKEA Foundation?


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Answer

  • climate action
  • renewable energy
  • agricultural livelihoods
  • employment and entrepreneurship
  • refugee livelihoods
  • special initiatives and emergency response

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Question

What is the main goal of the IKEA Foundation’s climate action?

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Answer

to reduce carbon emissions

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How does the IKEA Foundation work on supporting agricultural livelihoods?

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Answer

Partnering with Enviu they support social entrepreneurs in Africa and India in creating local markets by building local supply chains.


Show question

Question

What is an initiative launched by the IKEA Foundation to enable underprivileged people to earn income and lift their families out of poverty?

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Answer

Green Entrepreneurship Initiative

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Question

What institution was a research on refugees carried out by?

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Answer

by the Refugee Studies Centre at the University of Oxford

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Question

What did the IKEA Foundation do to help during the COVID-19 pandemic?


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Answer

It donated €3 million to Médecins Sans Frontières (MSF), an international humanitarian medical non-governmental organisation. The donation is expected to support ongoing life-saving medical activities caused by the spread of COVID-19 in India.

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Question

What type of a non-profit organisation is the IKEA Foundation?

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Answer

Philanthropic organisation

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What are philanthropic organizations?

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Answer

Philanthropic organizations are non-profit, non-governmental organizations that use donated assets and income to provide social services and create social capital. They can take the form of community foundations or charitable trusts.

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Question

Foundations belong to the ___ sector.

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Answer

non-profit 

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Question

Foundations create social benefits, also known as...

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Answer

social capital. 

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Question

___ organizations are non-profit, non-governmental organizations that use donated assets and income to provide social services and create social capital.

Show answer

Answer

Philanthropic

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Question

The IKEA Foundation is a ___ organization.


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Answer

philanthropic 

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Philanthropic organizations are ___ organizations.


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Answer

non-profit 

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Philanthropic organizations are ___ organizations.


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Answer

non-governmental 

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Foundations belong to the ___ sector.

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Answer

non-profit 

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The IKEA Foundation is independent of the IKEA company. 

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Answer

True

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Philanthropic organisations can take the form of community foundations but not charitable trusts.

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Answer

False

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Does the IKEA Foundation implement initiatives aiming to protect the environment?

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Yes

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Question

When was the IKEA furnishings company founded?

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Answer

1943

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Question

The IKEA Foundation was founded together with the IKEA furnishings company in 1943.

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Answer

False

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The IKEA Foundation is an advocacy organisation.

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Answer

False 

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The IKEA Foundation is a mutual benefit organisation.

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Answer

False

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Which statement is correct?

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Answer

The IKEA Foundation works together with strategic partners.

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Philanthropic organizations can take the form of...


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Answer

both community foundations and charitable trusts.

Show question

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