Amway is one of the worlds largest direct sales organizations with over 3 million Independent Business Owners

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Amway is one of the world’s largest direct sales organizations with over 3 million Independent Business Owners (IBOs) in over 80 markets and territories worldwide. It is a family-owned business with a strong emphasis on family values. Its IBOs are often couples. Many of them are raising families. They; therefore, have a strong bond with children. These families are more than happy to partner with Amway, who as part of its corporate social responsibility strategy works with the United Nations Children’s Emergency Fund (UNICEF).
As a family company, Amway is committed to playing a part in improving the lives of children in need across the globe. In this way, the company is able to show its commitment to the support of global causes. Amway defines a global cause as “a social issue affecting many people around the world engaged in a struggle or plight that warrants a charitable response.”
This case study shows how Amway is a business that does more than provide customers with good quality products. It shows the practical realities of Amway’s global commitment and how it plays a key role in the communities in which it operates.
What Does Amway Do?
Amway was founded in Michigan, USA in 1959. Amway is a leading manufacturer of health, beauty, homecare and personal care products. In total, more than 450 different companies branded products and services are offered globally by Amway. Over 13,000 people are employed by Amway in 80 countries and territories around the world.
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—cookware and water treatment systems

• Nutrition and wellness products—food supplements, food and drinks IBOs play a key part in helping Amway to deliver its Global Cause Programme.

UNICEF
The United Nations Children’s Fund (UNICEF) is the world’s leading organization working specifically for children. UNICEF works with local communities and governments in 155 countries to provide emergency relief and long-term development programmes in areas such as health, education and child protection. All UNICEF programmes are entirely dependent on voluntary organizations. UNICEF provides assistance for the world’s poorest children by raising funds through UNICEF programmes and advocating change on their behalf......


Question For Discussion
1. After reading this case study, what do you understand by the term corporate social responsibility (CSR)?
2. Explain two actions that Amway and its IBOs are currently taking that involve CSR.

3. Analyse the key ingredients in Amway’s CSR strategy. Show how the strategy is designed to translate the vision into practical steps on the ground.

4. Recommend ways in which Amway could enhance and develop its impact on making every child matter.

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Total Quality Management

ISBN: 9789332579392

3rd Edition

Authors: Poornima M. Charantimath

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