The Times 100 - Edition 13 - Amway Brief Case Study

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Amway

Meeting global responsibilities by caring for communities

Amway

Meeting global responsibilities by caring for communities

Being responsible

Successful businesses will do more than just supply goods and services. They will also help the communities in which they work. Amway is a good model of a business that is serious about its wider responsibilities. Amway has social aims as well as business aims. It has created links with the United Nations Children’s Fund, (UNICEF) which works for children's rights. It has launched a fund-raising campaign for children across Europe.

Working with customers

Amway is one of the world's largest direct sales companies. It works by distributing its products to over 3 million IBOs (Independent Business Owners). They then sell products on to customers. This cuts out shops and retail outlets and gives better value. Amway works directly with customers so it is vital that it has good relationships with the communities in which they live. Amway provides high quality products and also aims to meet its social aims. It is also a business that seeks to expand. To attract new IBOs in new markets it must show that it is responsible. This is called Corporate Social Responsibility (CSR). It includes support for good causes and acting in an honest and ethical way. Being ethical means 'doing the right thing'.

OneBYOne

To help meet its aims Amway has produced a plan called the 'OneBYOne, Global Cause Programme'. Amway defines a global cause as an issue which affects many people around the world. Its vision is to help people live better lives. Amway started the programme in 2002. It researched into issues around the world. It held talks with global bodies to see where help would most be needed.

Helping children

The research showed that its own people clearly wanted Amway to help with issues around children and families. This is because Amway is owned and operated by families.

Research showed that:

  • Half of the world’s poor are children.
  • 12 million children a year die before they are five.
  • Over 125 million children have no access to education.

Research also showed that there were different needs in different countries so action should be targeted.

Europe

The campaign to help children is called OneBYOne. In Europe, Amway works with UNICEF. At the end of 2004 Amway’s people in Europe gave over €500,000 (about £350,000) to UNICEF by selling Christmas cards and giving money. Amway has said it will raise €2.5m for UNICEF by 2009.

Conclusion

Amway is showing that it can help to make a difference by working closely with UNICEF.

       
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