Corporate Social Responsibility An Amway case study
Page 2: Growth and responsibility
An understanding of how Amway operates as an organisation gives a clearer picture of the contribution it can make to help children in need across the globe. Amway's vision is to help people live better lives. It does this every day by providing a low-cost low-risk business opportunity based on selling quality products.
What does Amway do?
Amway distributes a range of branded products. These products are sold to IBOs worldwide. The IBOs are Amway's links with consumers and the communities in which they operate. The IBOs are self-employed and are highly motivated. They work within the guidelines of Amway's 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 treatment 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.
In order to give many of the world's children a chance to live a better life, Amway launched the global One by One campaign for children in 2003. Amway encourages staff and IBOs to support its One by One campaign for children. The One by One programme:
helps Amway to bring its vision to life
declares what the company stands for
builds trust and respect in Amway brands
establishes Corporate Social Responsibility at a high level.
Since 2001, Amway Europe has been an official partner of UNICEF and has been able to contribute over 2 million euros (about £1.4 million). The focus is on supporting the worldwide 'Immunisation Plus' programme.
This involves, for example, providing measles vaccines to children across the globe. The 'Plus' is about using the vehicle of immunisation to deliver other life-saving services for children. It is about making health systems stronger and promoting activities that help communities and families to improve child-care practices. For example the 'Plus' could include providing vitamin A supplements in countries where there is vitamin A deficiency.
Since 2001, Amway and its IBOs across Europe have been supporting UNICEF's child survival programme. The need is great. One out of ten children in Kenya does not live to see its fifth birthday, largely through preventable diseases. Malaria is the biggest killer with 93 deaths per day. Only 58% of children under two are fully immunised.
The work of the One by One programme is illustrated by a field trip undertaken by Amway IBOs to Kenya. The IBOs travelled to Kilifi in 2006 to meet children and to find out what the problems are in various communities. They act as champions spreading the message throughout their groups.
In Kilifi, the focus is on trying to reach the most vulnerable children and pregnant mothers. The aim is to increase immunisation from 40% to 70%. Other elements of the programme involve seeking to prevent the transmission of HIV/AIDS to infants.
As the Amway organisation grows and prospers, it is able through CSR actions to help communities to grow and prosper too.