1. Critically analyze IKEA’s foray into Russia. In what ways was it successful? “[. . .] not all companies succumb to corruption. The Swedish furniture retailer IKEA has steadfastly refused to bribe Russian officials.”2

—Alexander Hill, president emeritus of Inter-

Varsity Christian Fellowship3 US, in 2017

“Ikea is clearly quite successful in Russia but in the early days when they entered the market they took the expression

‘do as the Romans do’ too literally . . . Ikea today is a much different company . . . The current management have the highest standards and follow the rules but that wasn’t the case when they arrived, when they were too focused purely on trying to capture market share.”4

—Alexei Slesar, head of capital markets, Cushman & Wakefield,5 in 2016 In October 2018, Swedish furniture retailer and designer of home accessories and kitchen appliances the IKEA Group (IKEA) announced its plans to enter into partnerships with Russian companies in a bid to boost its local online business, according to Pontus Erntell, IKEA’s Russia country manager. The retailer planned to open 100 pick-up points in a bid to boost its online business in Russia in the financial year September 2018–August 2019. The company announced ambitious plans to expand its stores in the Russian market after it witnessed an increase in sales by 2% in the fiscal year 2017–18, with a 12% increase in visits to its eCommerce site.6 IKEA entered the Russian market in the late 1990s. From its early days, the company took a firm stand against corruption, which led to its facing several setbacks when setting up stores and inaugurating them, and even while advertising for them. According to the company, “IKEA consistently combats corruption. All of our divisions operate completely transparently.

The company has adopted a strict code of conduct and its provisions are binding not only for rank-and-file employees and executives, but also for business partners. These regulations are uniform throughout the world and Russia is no exclusion.