The role of stakeholders
An Amway case study

Page 4: How Amway affects its stakeholders

Amway's vision is 'helping people live better lives'.

Amway's business plays a key role in the communities in which it operates. Amway has a global strategy for producing, distributing and marketing its products worldwide. It also has a strategy for promoting corporate social responsibility (CSR) in a global way. CSR refers to the role that a company plays in meeting its wider commitments as a citizen. Such commitments include supporting worthy causes and always acting in an ethical, honest way.

Amway operates in many different markets worldwide and has a range of affiliates and ABOs. It therefore has to devise and communicate its plans for corporate social responsibility activities carefully to take account of different priorities and interests. From the outset, Amway established some clear objectives. These were to:

  • build loyalty and pride among ABOs and employees
  • enhance Amway”s reputation as a caring organisation
  • make a real difference to human lives.
  • This helps to maintain Amway's reputation with all its stakeholders.

 

 Amway contributes time, effort and money to support its business communities:

 

  • It creates appropriate Amway products for ABOs to sell.
  • It develops campaigns that support the business and social aims of the company. Getting the image right is vital in a business that relies on building relationships with individuals and the wider community.
  • Amway regularly seeks to develop new products in line with market research aimed at finding out what customers want.
  • Its employees volunteer at different charity organisations.
  • It has shared $294 million (around £150 million) with non-profit organisations since the company began.

Global Cause Program

Amway produced its Global Cause Program in 2002 as the result of extensive research. Amway defines a global cause as 'a social issue affecting many people around the world engaged in a struggle or a plight that warrants a charitable response'.

The Global Cause Program:

  • helps Amway to bring its vision to life
  • declares what the organisation stands for
  • builds trust and respect in Amway brands
  • establishes corporate social responsibility as a high priority

In developing its global cause strategy, Amway also listened to what its ABOs cared about. Many favoured a cause to help children.

This led to Amway's partnership with UNICEF”s Immunisation Plus programme. This aims to provide vaccination against the six most serious diseases affecting children in the developing world. Amway's business image benefits from the relationship with UNICEF. UNICEF benefits from the fundraising Amway and its ABOs contribute.

Amway | The role of stakeholders

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