The Times 100 - Edition 13 - Amway Brief Case Study

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Amway

Corporate Social Responsibility

Introduction

Amway is one of the world's largest direct sales organizations. It has over 3 million Independent Business Owners (IBOs). These IBOs source products from Amway. They sell them in their own local businesses. Many of them are couples with children. This makes them happy to support a child based charity. Amway supports UNICEF, the United Nations Children's Fund. This is part of Amway's Corporate Social Responsibility (CSR) strategy. CSR refers to the way that businesses work in a responsible way. They put something back into communities where they work.

One by One

Amway's vision is to help people lead better lives. Amway supplies branded products to its IBOs. This provides a low cost and low risk chance to start a business. The IBOs are Amway's link into local communities. They are given support to bring others to start with Amway. Amway believes in helping children. It has a campaign called 'One by One'. This aims to help children all over the world. Since 2001 Amway Europe has worked with UNICEF. It has given around £1.4 million to help its work. It supports the 'Immunisation Plus' programme. This involves providing vaccines to children. The 'Plus' refers to the way the programme is used to provide other benefits. The IBOs act as 'Champions'. They travel to meet the children and spread the message in their own groups.

Values

One of Amway's main values is to be a caring company. It has developed a strategy, called a global cause, to help it reach this aim. A strategy is a set of plans. Its work with UNICEF is shaped by partnerships in Europe and the UK. It aims to raise around £350,000 a year every year until 2010 to help combat children's diseases. In 2005 Amway UK became an official corporate partner of UNICEFUK . This means it set up a close long term relationship.

Stakeholders

The CSR aims to support all of Amway's stakeholders. These are:

  • Amway itself - being responsible helps to grow the business
  • IBOs - these want Amway to show that it cares
  • customers - being responsible is seen as a good thing
  • staff - people want to work for a business that shows it cares
  • UNICEF - it wants to work with a business that shares its values and helps it raise funds.

Amway supports UNICEF through sales of items. These include greetings cards, wrapping paper and children's toys. Its staff also get involved in fund-raising events.

Communication

Clear communication helps the strategy to run smoothly. This includes:

  • face-to-face communication – regular meetings between the various partners
  • printed material: Amway produce a monthly magazine for IBOs
  • email to keep IBOs up to date
  • online, for example, the site at www.unicef.org.uk/amway.

Conclusion

Amway is a family business. It has strong family values. It is also still family owned. It wants to have a good effect in the communities where it works. This is why it has strong links between its IBOs, itself and UNICEF.

       
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