Motorola

Creating a corporate social responsibility strategy

Introduction

Amway is one of the world's largest direct sales organisations with over 3 million Independent Business Owners (IBOs) in over 80 markets and territories. It is a family owned company with a strong emphasis on family values. Its IBOs are mainly couples with many raising young families and therefore have a strong bond with children. These families are more than happy to be partnered with Amway, who as part of its Corporate Social Responsibility Strategy works with UNICEF, the United Nations Children's fund.

IBOs sell Amway's own branded products. They are Amway's links with consumers and the communities in which they operate. This case study shows how Amway is a business that does more than simply provide customers with good quality products. In addition it plays a key role in the communities in which it operates.

Businesses need to trade ethically i.e. in a principled way. Amway has put ethical behaviour at the top of its agenda. Ethical behaviour is part of Corporate Social Responsibility (CSR). This refers to business organisation's wider responsibilities to society.

Amway's ethical beliefs are illustrated through the support of global causes. It 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 explains how Amway's One by One Campaign for Children illustrates the businesses' commitment to children in need across the globe.

Amway's vision is 'To help people live better lives'.

There are various ways in which this vision is delivered.

Amway encourages staff and IBOs to support its One by One Campaign for Children.

Values are important to a company. It is what an organisation stands for e.g. being trustworthy and honest, taking care for others, giving value for money, etc. An important value for Amway is being a caring company. As a result, Amway believes firmly in demonstrating that it cares, which is why it works with UNICEF. The values of UNICEF and Amway are closely aligned. Amway recognises that it must build its business based on 'relevance, simplicity and humanity'.

Meeting stakeholder needs

A stakeholder is a group or individual who has an interest in the decisions made by a business. Amway's CSR strategy has been developed with the interests of stakeholders in mind. The key groups are:

Each one of these stakeholders has particular concerns:

Amway takes corporate social responsibility seriously through its partnership with UNICEF. The two key partners in this relationship are UNICEF and Amway.

Amway and UNICEF work in and for communities across the globe. They are therefore natural partners.

Growth and responsibility

An understanding of how Amway operates as an organisation gives a clearer picture of the contribution it can make to helping children in need across the globe.

Amway distributes a range of branded products. These products are sold by IBOs worldwide. The IBOs are self employed and are highly motivated. They work to 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 treatments 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.

Amway launched the One by One Campaign for Children in 2002 across the whole organisation. This 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 to a high level.

Examples of activities under the One by One program include:

• helping to set up a boat school for fishermen's children in China

• helping to organise a Children's Day Party for 3,000 orphans

• providing Braille books for blind children in India.

Clearly the programme fits with the partnership with UNICEF and is a key motivating tool for IBOs who share the vision.

As a business Amway is able to grow by:

• More IBOs joining the Amway business opportunity - Amway's IBOs live and trade in over 80 markets and territories worldwide.

• IBOs selling more products - Sales by IBOs increase. This is partly because IBOs are entrepreneurial and committed to their work. It is also as a result of the support and range of products provided by Amway.

• Motivating IBOs - People are motivated if they believe in the products they sell and the company they represent. IBOs are pleased to work for a company with a high reputation.

There is a natural fit between Amway's desire to meet people's needs and the way that UNICEF champions the needs of the world's children.

This fit exists in a number of ways as both Amway and UNICEF:

• are global organisations

• benefit from a high level of public and consumer trust

• are dedicated to helping people live better lives.