Amway – Creating a Corporate Social Responsibility Strategy
Essay title: Amway – Creating a Corporate Social Responsibility Strategy
Creating a corporate social responsibility strategy
Introduction
Amway is one of the worlds largest direct sales organisations with over 3 million Independent Business Owners (IBOs) in over 80 markets and territories. It is a family owned company with a strong emphasis on family values. Its IBOs are mainly couples with many raising young families and therefore have a strong bond with children. These families are more than happy to be partnered with Amway, who as part of its Corporate Social Responsibility Strategy works with UNICEF, the United Nations Childrens fund.
IBOs sell Amways own branded products. They are Amways links with consumers and the communities in which they operate. This case study shows how Amway is a business that does more than simply provide customers with good quality products. In addition it plays a key role in the communities in which it operates.
Businesses need to trade ethically i.e. in a principled way. Amway has put ethical behaviour at the top of its agenda. Ethical behaviour is part of Corporate Social Responsibility (CSR). This refers to business organisations wider responsibilities to society.
Amways ethical beliefs are illustrated through the support of global causes. It defines a global cause as a social issue affecting many people around the world engaged in a struggle or plight that warrants a charitable response. This case study explains how Amways One by One Campaign for Children illustrates the businesses commitment to children in need across the globe.
Amways vision is To help people live better lives.
There are various ways in which this vision is delivered.
Amway encourages staff and IBOs to support its One by One Campaign for Children.
Values are important to a company. It is what an organisation stands for e.g. being trustworthy and honest, taking care for others, giving value for money, etc. An important value for Amway is being a caring company. As a result, Amway believes firmly in demonstrating that it cares, which is why it works with UNICEF. The values of UNICEF and Amway are closely aligned. Amway recognises that it must build its business based on relevance, simplicity and humanity.
Meeting stakeholder needs
A stakeholder is a group or individual who has an interest in the decisions made by a business. Amways CSR strategy has been developed with the interests of stakeholders in mind. The key groups are:
Each one of these stakeholders has particular concerns:
Amway takes corporate social responsibility seriously through its partnership with UNICEF. The two key partners in this relationship are UNICEF and Amway.
Amway and UNICEF work in and for communities across the globe. They are therefore natural partners.
Growth and responsibility
An understanding of how Amway operates as an organisation gives a clearer picture of the contribution it can make to helping children in need across the globe.
Amway distributes a range of branded products. These products are sold by IBOs worldwide. The IBOs are self employed and are highly motivated. They work to Amways Rules of Conduct and Code of Ethics which are about being honest and responsible in trading. IBOs sell to people that they know or meet. They can introduce others to the Amway business.
Typical products that IBOs sell include:
personal care – fragrances, body care
skin care and cosmetics
durables such as cookware and water treatments systems
nutrition and wellness products such as food supplements, food and drinks.
IBOs play a key part in helping Amway to deliver its global Cause Programme.
Amway launched the One by One Campaign for Children in 2002 across the whole organisation. This programme:
helps Amway to bring its vision to life
declares what the company stands for
builds trust and respect in Amway