Introduction

Amway is a direct sales company. It is one of the world’s largest. It was founded by a group of families in 1959. It is still owned by these families. It employs 14,000 people worldwide. It markets over 450 product lines. A key part of its success is its three million ABOs (Amway Business Owners) spread round 80 countries. Amway helps these people to have a business of their own. Amway also knows that it has other responsibilities. This includes responsibilities to the communities in which it works. Its global vision is to help people lead better lives.

Stakeholders

Stakeholders are people or groups who have an interest in a business. They have a stake in its success or actions. Different stakeholders may have aims that are not the same. This could cause conflict. They can be outside the business, such as suppliers and the public. They can be inside the business, such as employees, ABOs or shareholders. The families that founded Amway own all the shares. Amway keeps in touch with stakeholders through websites, email, events, publications and trade bodies.

How stakeholders affect Amway

Amway is a direct selling company. It cuts out retail outlets and sells straight to consumers. It has its own supply chain, through ABOs. Amway needs feedback from ABOs and customers to know how well it is doing. It can then work to improve service. ABOs are independent, but rely on Amway suppliers to produce quality goods.

How Amway affects stakeholders

Amway’s vision is to ‘help people lead better lives’. This explains how it works with communities. It promotes corporate social responsibility (CSR) around the globe. This means that it meets its wider duties in the places where it works. It supports good causes and acts in an ethical way. Amway supports its stakeholders by:

• making sure products are good
• supporting social programmes.

It has a partnership with children’s charity UNICEF. It contributes to a programme to combat the world’s six most deadly diseases. It has chosen this because this is what ABOs, who tend to be families themselves, were most concerned about.

Ethical business

Ethics is to do with morals. It means ‘doing the right thing’. Ethical businesses try to improve the communities where they work. Amway’s ethics provide a framework in which to work. This stance also gives it a positive business advantage. Its ‘One by One’ programme

• supports organic farming
• aims to reduce waste and packaging
• aims to switch to renewable energy sources.

This programme is good for the environment, but also good for business. These actions carry a cost, but there are also benefits to be gained.

Conclusion

Amway has to balance the needs of its many stakeholders. It sets high standards of ethics. It sets codes of conduct to make sure its standards are upheld. It uses these to help the environment, its own employees and ABOs and disadvantaged children around the world.