Amway is one of the world’s largest direct sales companies. It was founded in 1959 and is still owned by the families that founded it. It employs 14,000 people worldwide and markets over 450 product lines. A key part of its success is its three million ABOs (Amway Business Owners) spread round 80 countries. Amway enables these people to have a business of their own. Amway recognises that it has other responsibilities, for example, to the communities in which it works. Its global vision is to help people lead better lives. Stakeholders
Stakeholders are groups or individuals who have an interest in the decisions of the company and its business. Stakeholders can be external, like suppliers, customers or the public or internal, such as employees, or shareholders. Different types of stakeholders may have different priorities or interests. Amway has to balance out the different priorities. The families that own Amway are its only shareholders. Amway communicates regularly with stakeholders through websites, email, events, publications and membership of trade bodies.
How stakeholders affect Amway
Amway is a direct selling company, cutting out retail outlets and selling straight to consumers. It has its own supply chain through ABOs. Amway needs feedback from ABOs and customers to know how well it is doing and to improve service. ABOs are independent small businesses, but rely on Amway suppliers to produce quality goods.
How Amway affects stakeholders
Amway’s vision to ‘help people lead better lives’ explains how it works with communities. It promotes corporate social responsibility (CSR) around the globe. This means that it meets its wider duties to the communities in which it works. This involves supporting good causes and acting in an ethical way. Amway supports its stakeholders in a number of ways. These include making good products and giving support to social programmes. It has a partnership with the children’s charity UNICEF. It...