Corporate Social Responsibility An Amway case study
Page 3: Developing a strategy
A strategy is an organisational plan. Implementing a strategy involves putting that plan into action. In other words a strategy shows how a business will achieve its goals. The strategy thus enables an organisation to turn its values into action. Values are what a company stands for. An important value for Amway is being a caring company. Amway believes in demonstrating this caring approach and this is why it has partnered with UNICEF.
All Directors design strategies for the whole of an organisation. Effective strategies involve discussion and communication with others. The views of IBOs are influential in creating strategies for Amway. Amway's strategies for corporate social responsibility are cascaded through the organisation as shown below.
Amway's Global Cause strategy involves creating responsible plans that make a difference. However, the strategy is flexible. In shaping the strategy, research was carried out to find out which global causes IBOs support. The results showed that many favoured a cause that helped children. There was a clear fit between Amway's aims to help children and UNICEF's 'Immunisation Plus' programme for children.
From the outset, Amway set out some clear objectives for its strategy. These were to:
build loyalty and pride among IBOs and employees
enhance Amway's reputation as a caring organisation
make a real difference to human lives.
Child mortality is particularly high in developing countries because of infectious diseases. Many children could still be alive if they had been vaccinated.
For under £12 a child can be vaccinated against these diseases and has a fighting chance to reach adulthood. UNICEF's world child 'Immunisation Plus' programme is a fitting focus for the activities of Amway UK and its IBOs.
The UK initiative is part of a European-wide fundraising campaign for children. It recognises the importance of building good working relationships with UNICEF in each market in order to launch fundraising programmes through Amway's IBOs and their customers. The objective is to raise 500,000 euros (about £350,000) every year until 2010 across Amway Europe.
In 2005 Amway UK's partnership was deepened through becoming an official Corporate Partner of UNICEF UK. The Corporate Partnership is a closer longer-term relationship which benefits both partners. Working together the two parties raise money for UNICEF.