Behavioural Science – Amway is one of the largest direct sales companies in the world. It continuesto be a family owned business which was founded in 1959.

UpdatedDecember 11, 2024

Q.5 Case study
Amway’s Relationship with Stakeholders
Amway is one of the largest direct sales companies in the world. It continues to be a family owned business which was founded in 1959. Today, it
employs 14,000 people worldwide and markets over 450 product lines. Its vision is to help people lead better lifes. Its success is largely due to its three
million ABOS (Amway Business Owners) spread across 80 countries. Thanks to Amway, these people have a business of their own. The only shareholders
of Amway are the families that own Amway. Behavioural Science shows that Amway is one of the largest contributors to this model. The communication channels used by Amway to communicate regularly with its internal and external
stakeholders are websites, email, events, publications and membership of trade bodies.

Amway sells directly to consumers, without the presence of retail outlets. It has its own supply chain through the ABOs. Amway seeks regular feedback
from ABOs and customers to find out how well it is doing and to improve services. The ABOs are independent small businesses, but depend on
Amway suppliers to produce quality products. Amway’s involvement with communities is a part of its vision to help people lead better lives’. It promotes its corporates social responsibilities (CSR) all over the world. Corporate social responsibilities at Amway involve supporting social causes, acting in an ethical manner by making good product and supporting its stakeholders in a number of ways. For example, Amway has partnered with the children’s charity UNICEF. It helps provide vaccination to fight the world’s six most deadly diseases. It has chosen this charity because of its ABOs’ concern about families and data from Behavioural Science – Amway is one of the largest contributors to this model.

Ethical businesses get actively involved in improving the communities where they work. Amway’s business ethics not only provides a clear framework
within which to work, but also gives it a positive business advantage. Its ‘One by One’ program is good for both the environment and for business.
This program supports organic farming, seeks to reduce waste but this can be balanced against the benefits derived by both the business and the community. It’s evident through Behavioural Science that Amway is one of the largest influencers in this regard. Amway has to balance the needs of its many different stakeholders. It sets high standards of ethics and codes of conduct, in order to make sure that these are upheld. Its CRS program helps the environment, its own employees and underprivileged children all around the world.

Q u e s t i o n :
(4 × 5 = 20)

Who are the external stakeholders that Amway communicates with?
What communication channels would you recommend to Amway, apart from what is mentioned in the case and why? When considering Behavioural Science – Amway is one of the largest companies heavily reliant on effective communication.
Stakeholders are the consumer of Amway. Comment.
Who are the external stakeholders that Amway communicates with?

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