A man is operating a machine that moves heavy objects. He is loading logs onto the back of a truck.

Building a better business with IWAY

The IKEA business impacts both people and the planet, including thousands of people in our value chain. So how can we do good business while being a good business? We strongly believe that we can only achieve this together with suppliers that share our vision and ambition. That’s why we have developed IWAY, the IKEA code of conduct for suppliers.

What is IWAY?

IWAY (short for the IKEA way of responsibly procuring products, services, materials and components) is the IKEA supplier code of conduct. IWAY sets social and environmental requirements for all IKEA suppliers and service providers.

IWAY is based on widely recognised international documents and conventions for human rights, environmental protection, and worker health and safety, as well as on IKEA values and legal compliance. It is continuously being developed. For example, in the latest revision, we have brought in animal welfare and biodiversity to reflect our priorities.

International documents that IWAY is based on:

  • UN Guiding Principles on Business and Human Rights (UNGPs)
  • Ten Principles of the UN Global Compact
  • UN Sustainable Development Goals (SDGs)
  • ILO Centenary Declaration for the Future of Work
  • ILO conventions and recommendations

A look at IWAY requirements

IWAY is mandatory for all IKEA suppliers and service providers. From producing home furnishing products and hot dogs, to cleaning an IKEA store, if a supplier is not able to develop its business to fulfil the requirements of IWAY, it is phased out from the IKEA value chain.

IWAY has a set of requirements, the “IWAY Must”, which all suppliers and service providers need to comply with before IKEA starts working with them. IWAY Must requirements include for example no child labour, no forced or bonded labour, payment of minimum legal wages and accident insurance to all workers.

The IWAY Standard has a General Section, which is applicable to all suppliers and includes both the IWAY Must requirements and the IWAY requirements that suppliers are expected to comply with after a maximum period of implementation of 12 months.

A man wearing a reflective vest is operating a fork lift in a warehouse. He is lifting boxes.

The 14 chapters of the IWAY General Section:

  • IWAY Must Requirements
  • General Conditions
  • Business Ethics
  • Environment
  • Chemicals
  • Waste
  • Emergencies and Fire Prevention
  • Worker Health & Safety
  • Recruitment, Working Hours, Wages and Benefits
  • Accommodation
  • Child Labour and Young Workers
  • Discrimination
  • Worker Involvement
  • Harassment, Abuse and Disciplinary Actions
There are also specific IWAY sections with requirements concerning certain parts of the IKEA supply chain, such as the IWAY Forestry Section and the IWAY Transport Section.

Ensuring IWAY compliance

IWAY has been at the heart of our relationship with suppliers for almost 20 years. As our expectations evolve, we provide training and support to enable our suppliers to meet new requirements, and to continuously embed IWAY into everyday business processes.

Besides implementing transparent and reliable routines to ensure, verify and report IWAY, we work with three levels of announced and unannounced audits, performed both by ourselves and third party organisations.

A factory worker, Zhong Bo, is operating the printing machine at Dongguan MYS. He is wearing a light blue mask and shirt.

A better future, together

Working with suppliers is not just about making sure all production and operations are carried out in a responsible manner. By making sure our suppliers share our vision, we create strong ties for the future. When we can work together and share the same goal, we are not just buyer and supplier, but partners for growth.

You can find detailed information about IWAY in these documents:

Other stories you might be interested in