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MS-91 Advanced Strategic Strategic Management Management Question1 Identify the features of Corporate Philosophy and examine it with reference to an organisation (Name and describe the organisation you are referring to).

The decision and written promise to commit to compliance is the first step in creating an effective compliance program. This written statement, usually referred referred to as a corporate philosophy statement, is just a written policy that promises to dedicate sufficient resources to company compliance at all levels. It doesn’t have to be fancy or complicated. A simple, short statement of the company’s commitment to compliance will do. Corporate Philosophy @ Tata Docomo

With the aim of creating a new world of communications culture, we NTT DOCOMO DOCOMO will devote all the skills, know-how and energy towards the establishment of more "personal communication" with our customer that contributes to their heartfelt satisfaction.

A New World of Communications Culture More personal communication Reliable access Real-time access • •

•

E communication communication One-to-one “personal “personal

This gives birth to a new world of communications culture •

Freedom to enjoy communications anytime, anywhere with anyone

•

Birth of customs and etiquette corresponding to the Eparadigm “personal access

•

Opening of endless lifestyle horizons

To achieve this... In order to create a world of more innovative and enriched communications, we will improve service quality, aggressively move forward with the development of various services. We will also research and develop a more advanced user-friendly communications interface, interface, and at the same time we will provide these services and technologies to an ever expanding area. Customer Satisfaction 1


• • • • • •

Communications Communications that are always ready when needed. Capability to contact whomever, from wherever and whenever the customer desires. Happiness that comes from heart-to-heart communications. Bringing customers another step closer to realizing their dreams. Responding to every customer with consideration, courtesy and thoroughness. Providing products that give customers easy and convenient access to cutting- edge functionality. functionality.

To achieve this... First and foremost, we will fulfill expectations of customers by fulfilling our response to their needs through improved service quality, building original networks, enriching functionality and expanding the service area. In addition, by providing an expanding and ever-improving selection of services at inexpensive rates, we will deliver satisfaction to a growing diversity of customers. Making the most of the talents of each individual in our company Respect for the individuality and sense of values that are unique to each person. Enable internal corporate communication to flow free from vertical and horizontal organizational barriers. Make the most of the ideas of each individual. Foster a corporate culture that is not restricted by conventional thinking and systems. Create a creative office environment that supports the fulfillment of the individual. Fostering an "open" corporate culture that welcomes the ideas and views of the individual. Evaluate personnel based on their merits. Build a company that overflows with a challenging spirit. • • • • • • • •

To achieve this... By improving improving our system and programs programs for the enhancement enhancement of human human resources resources and unifying unifying our human human resource resource development, we will empower each individual to exert their skills to the utmost of their capabilities and discover new potential. At the same time, we will strive to create a workplace that motivates individuals through measures such as improvement of the working environment and labor conditions and enhancement of health and welfare benefits.

Toward a connected Future What can NTT DOCOMO do to help move society towards sustainability? sustainability? It can develop and offer services based on the mobile phone and by making connections, it can continue finding ways to contribute to society. Mobile phones have spread rapidly around the world in the past ten or more years. Having both positive and negative aspects, these devices are continually creating change in our lives, even as they themselves evolve. 2


The future of mobile phones is not for us to envision alone. We would like to create the vision together with our stakeholders. DOCOMO reaches out to join with its stakeholders and create a new culture of communication that connects us with our goal of a sustainable society.

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Question 2 High light the corporate governance practices in Indian context.

While corporate governance may not dictate the economic prospects of developing countries, it certainly plays an integral role in shaping them. This Note contains a detailed analysis of the corporate-governance architecture of one such developing country, India, from its independence in 1947 to the present. The results are surprising: India's corporate-governance framework is sophisticated for a developing country. However, considerable room remains for improvement. This Note presents a series of suggestions designed to improve corporate governance in India. Most notably, India must reform how its boards of directors function, improve its enforcement mechanisms, redefine its corporate laws, and embrace corporate governance as a philosophy. WHY CORPORATE GOVERNANCE

Investors primarily consider two variables before making investment decisions--the rate of return on invested capital and the risk associated with the investment. In recent years, the "attractiveness of developing nations" as a destination for foreign capital has increased, partly because of the high likelihood of obtaining robust returns and partly because of the decreasing "attractiveness of developed developed nations." nations." The lure of achieving achieving a high rate of return, return, however, however, does not, by itself, itself, guarantee guarantee foreign foreign investment; investment; the attendant risk .weighs equally in an investor's decision-making calculus. Good corporate-governance practices reduce this risk by ensuring transpar transparency ency,, accountab accountability ility,, and enforcea enforceabili bility ty in the marketpl marketplace. ace. While While strong strong corporate corporate-gover -governance nance systems systems help ensure ensure a country's long-term success, weak systems often lead to serious problems. For example, weak institutions caused, at least in part, the debilitating 1997 East Asian economic crisis. The crisis was characterized by plummeting stock and real-estate prices, as well as a severe erosion of investor confidence. The total indebtedness of the countries affected by the crisis exceeded one-hundred billion dollars. While the presence of a good corporate-governance framework framework ensures neither stability nor success, it is widely believed that corporate governance can "raise efficiency and growth," especially for countries that rely heavily on stock markets to raise capital. In fact, some contend that the "Asian financial crisis gave developing countries ... a lesson on the importance of a sound corporate governance system." In an open market, investors choose from a variety of investment vehicles. The existence of a corporate-governance system is likely a part of this decision-making process. In such a scenario, firms that are "more open and transparent," Also, sound corporate-governance practices enable management to allocate resources more efficiently, which increases the likelihood that investors will obtain a higher rate of return on their investment. Finally, Finally, leading indices show that developing countries that have good governance structures consistently outperform developing countries with poor corporate-governance structures. Thus, in an efficient capital market, investors will invest in firms with better corporate-governance frameworks because of the lower risks and the likelihood of higher returns. At a macro level, if firms in developing countries attract investment, they will stimulate growth in the local economy. If they "cannot attract equity capital, they are doomed to remain on a small, inefficient inefficient scale," and they will be unable to stimulate growth in their host country HISTORY OF CORPORATE GOVERNANCE IN INDIA A. PRE-LIBERALIZATION

When India attained independence from British rule in 1947, the country was poor, with an average per-capita annual income under thirty dollars. However, it still possessed sophisticated laws regarding "listing, trading, and settlements." It even had four fully operational stock exchanges. Subsequent laws, such as the 1956 Companies Act, further solidified the rights of investors. In the decades following India's independence from Great Britain, the country turned away from its capitalist past and embraced socialism. The 1951 Industries Act was a step in this direction, requiring "that all industrial units obtain licenses from the central government." The 1956 Industrial Policy Resolution "stipulated that the public sector would dominate the economy." To put this plan into effect, effect, the Indian Indian government government created created enormous enormous state-owned state-owned enterprises, enterprises, and India steadily steadily moved toward a culture culture of "corrupti "corruption, on, nepotism and inefficienc inefficiency." y." As the government government took over flounderi floundering ng private enterprises enterprises and rejuvenat rejuvenated ed them, it 4


essentia essentially lly "convert[ "convert[ed] ed] private private bankruptcy bankruptcy to high-cost high-cost public debt." debt." One scholar referred referred to India's India's economic economic history history as "the institutionalization institutionalization of inefficiency." inefficiency." The absence of a corporate-governance framework exacerbated the situation. Government accountability was minimal, and the few private companies that remained on India's business landscape enjoyed free reign with respect to most laws; the government rarely initiated punitive action, even for nonconformity with basic governance laws. Boards of directors invariably were staffed by friends or relatives of management, and abuses by dominant shareholders and management were commonplace. India's equity markets "were not liquid or sophisticated enough" to punish these abuses. Scholars believe that "takeover threats act as [a] disciplining mechanism to poorly performing companies" because as the stock price of poorly governed firms decreases (because disgruntled investors discard stock), the firms become susceptible to hostile-takeover attempts. Thus, “the fear of a takeover ... is supposed to keep keep the management honest." honest." However, until until recently, hostile hostile takeovers were almost entirely non-existent in India, and therefore, the poorly governed Indian firms had little to worry about in terms of following corporate laws once they had raised capital through their initial public offering. Thus, corporate governance in India was in a dismal condition by the early 1990s. B. POST-LIBERALIZATION

In 1999, in a defining moment in India's corporate-governance history, the Indian Parliament created the Securities and Exchange Board of India ("SEBI") to "protect the interests of investors in securities and to promote the development of, and to regulate[,] the securities market." market." In the years leading up to 2000, as Indian enterprises enterprises turned to the stock market for capital, it became became important to ensure good corporate governance industry-wide. Additionally, a plethora of scams rocked the Indian business scene, and corporate governance emerged as a solution to the problem of unscrupulous corporate behavior. In 1998, the Confederation of Indian Industry ("CII"), "India's premier business association," unveiled India's first code of corporate governanc governance. e. However, However, since the Code's Code's adoption adoption was voluntary voluntary,, few firms embraced embraced it. Soon after, SEBI appointed appointed the Birla Birla Committe Committeee to fashion fashion a code of corporate corporate governance. governance. In 2000, SEBI accepted accepted the recommendati recommendations ons of the Birla Committee Committee and introduced Clause 49 into the Listing Agreement of Stock Exchanges. Clause 49 outlines requirements vis-a-vis corporate governance in exchange-traded companies. In 2003, SEBI instituted the Murthy Committee to scrutinize India's corporate-governance framework further and to make additional recommendations to enhance its effectiveness. SEBI has since incorporated the recommendations of the Murthy Committee, and the latest revisions to Clause 49 became law on January 1, 2006. IV. THE CURRENT STATE OF CORPORATE GOVERNANCE IN INDIA

Corporate governance reform in India has focused primarily on the "role and composition of the board of directors." Each of the three sets of recommendations (the CII Code recommendations from 1997, the Kumar Mangalam Birla Committee recommendations from 2000, and the Murthy Committee recommendations from 2003) has advanced a more nuanced and sophisticated understanding of corporate governance in this respect. For example, while the CII Code was silent on the financial-literacy levels expected of directors, the Murthy Committee recommended that companies train their "Board members ... in the business model of the company as well as the risk profile of the business parameters of the company." Another notable recommendation of the Murthy Committee was that the Audit Committee be comprised entirely of "financially literate literate non-executive members with at least one member having accounting or related financial …

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Question 3 “Corporate Philanthropy is considered as a practice by companies of all sizes and sectors making charitable contributions to address a variety of social, economic and other issues as part of their overall corporate citizenship strategy” Discuss.

Corporate philanthropy or corporate giving is the act of corporations donating some of their profits, or their resources, to non profit organizations. Corporate giving is often handled by the corporation, directly, directly, or it may be done through a company foundation. Corporations most commonly donate cash, but they also donate the use of their facilities, property, services, or advertising support. They may also set up employee volunteer groups that then donate their time. Corporations give to all kinds of nonprofit groups, from education and the arts to human services and the environment.

Examples:

IBM gives millions of dollars each year to nonprofits through its corporate philanthropy program. Corporate Philanthropy Will Grow in India Indian businesses believe they are doing enough for inclusive growth and corporate charity will only get bigger from here on

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As the Indian economy gallops towards what many believe is new normal – 8 to 9 percent economic growth -- its business leaders are gradually waking up to the importance of philanthropy. This formed the theme of a free-wheeling audience discussion at the cover launch of the Forbes India Rich List issue on the evening of September 29, 2010 in Mumbai. Titled “Wealth Creation in the Next Decade - Towards a More Inclusive India,” the audience comprised India’s top industrialists and corporate heads. Anchored by CNBC’s Menaka Doshi, the discussion took up the issue of wealth creation and what it amounted to. According to Subroto Bagchi, vice-chairman of Mindtree Ltd. while there are several models of wealth creation, for him wealth is truly created when a person leaves a lasting legacy behind. “Physical infrastructure, intellectual and emotional legacy,” are its hallmarks. At present, India seems to be equating growth with consumption and “we need to debate that,” he added. A majority of business leaders believe their organisations are doing enough to promote inclusive growth with 51 percent saying yes and 31 percent saying no. (The rest abstained.) Niranjan Hiranandani, MD, Hiranandani Group pointed out that as creating wealth for shareholder is important, the inclusive growth mantra may not be heard in the boardroom as it should, but individual giving must take care of these shortcomings. Significantly, 85 percent said that the quest for inclusive growth would not reduce their competitive edge. Individual giving has been in the news recently with Bill Gates and Warren Buffet calling upon the rich the world over to donate 50 percent of their wealth to charity. In September, as part of “The Giving Pledge” they travelle travelled d to China China to impress upon the country’s country’s millionaires millionaires the importanc importancee of giving. The two have termed termed their their visit visit a success success despite only one billionaire agreeing to donate. Here at the Forbes India discussion some said that the lack of credible avenues to donate to made giving a difficult choice. If Gates and Buffet reached out to the Indian rich, 48 percent said they would be willing to donate, 39 percent said no and 12 percent abstained. The Indian rich give 0.2 percent of their wealth to charity As the charitable impulses of family businesses slowly transformed into sustainable organized philanthropic initiatives, companies started setting up Corporate Social Responsibility (CSR) wings. As businesses grew and professionalised, professionalised, several family businesses institutionalised institutionalised their philanthropic activities in the form of family foundations. These served as excellent forums for family collaboration and a means of transferring the mantle of philanthropic stewardsh stewardship ip to succeeding succeeding generation generations. s. Gradually Gradually,, the global global business business environmen environmentt and stakeholde stakeholders' rs' growing growing expectatio expectations ns encouraged businesses to pay close attention not only to their philanthropic activities, but also to the measurable social impact of these activiti activities. es. Today, Today, companies companies view their philanthr philanthropic opic programmes programmes not only as corporate corporate or family resources resources meant for social social development, but also as strategic social investments intended to achieve measurable outcomes and impacts. Corporate philanthropy programmes are often a part of the organisation's mission and are designed to address social and political issues that affect the business. Philanthropy in Pre-Independence India During the early days of industrialisation in India, philanthropy was limited to individual initiatives undertaken by organisations and rich families. During the independence movement, several industrial thought leaders extended their financial support to leaders of the freedom struggle. G.D. Birla's financial contributions to the movement and Ardeshir Godrej's generous donation to the Tilak Fund for the upliftment of Harijans were notable among these. The Tatas and the Murugappas pioneered charitable contributions to hospitals and schools. Currently, on average, Tata Sons contributes between 8 to 14 percent of its net profit every year for philanthropic activities through the various Tata Trusts. Since philanthropy was considered as pure service to mankind and thus to God, women of many such prominent families were encouraged to get involved. Non-working family members, primarily women, took an active part in key decisions in philanthropic activities. While key members of the family drove economic wealth creation, others took care of the trusteeship role expected from the family by taking up various philanthropic initiatives to improve the lot of the underprivileged. In the paradigm of Indian philosophy, service to mankind is believed to bring God's blessings, and hence the business family chose to directly supervise its philanthropic activities.

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Support came from the business organisation through executives and assistants who shared these sentiments. In essence, service was the only motto of philanthropy in the early days, and everyone who wanted to get involved, regardless of his or her technical or managerial capabilities, was encouraged. The quality of work was measured in terms of input flow, particularly amount spent, rather than the net outcome. While effectiveness was important, efficiency was assumed. Philanthropy in the era of globalisation A quick glance at the current Indian philanthropic scenario would show a number of interesting trends. Broadly, one can see the emergence of three models of philanthropy. Corporate Social Responsibility Corporate Corporate Social Responsibility (CSR) is the most prevalent form of philanthropy worldwide, though the levels of activity and organisational involvement vary widely. Most large organisations have a social responsibility arm, with budgeted resources and dedicated staff, which works towards improving the quality of life of the workforce and their families, as well as for the local community at large. Most philanthropic initiatives are undertaken in the business neighborhood, mainly because of the immedi immediate ate impact impact on local local stake stakehol holder ders. s. Organi Organisat sation ionss with with multip multiple le locati locations ons tend tend to undert undertake ake commun community ity buildi building ng activities in as many business locations as possible. Such `pure' corporate initiatives do not have much participation from the business promoter's families. This is particularly particularly the case if the promoter family is not very closely involved in the business. Individual / Family Foundations With the transformation of the economy in the 1990s, a new generation of corporate leaders, such as those those of Infosy Infosyss and Wipro Wipro,, have have shown shown treme tremendo ndous us intere interest st in invest investing ing their their wealth wealth for social social develo developme pment. nt. They They have have demonstrated how several strategic approaches used by professional organisations can be applied for formulating policies and programmes for inclusive growth.

Read the following case study carefully and give your analytical responses to the questions gi ven at the end. Amway and its Independent Business Owners

Corporate Social Responsibility (CSR) means businesses and organizations working responsibly and contributing positively to the communities they operate in. It involves working with employees, their families, the local community and society at large to improve their quality of life. Companies that operate in a socially responsible way strengthen their reputations. In business, reputation is everything. It determines the extent to which customers want to buy from you, partners are willing to work with you and your standing in the community. 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 these 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 UNICEF, the United Nations Children’s Fund. 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. Growth and responsibility

An understanding of how Amway operates as an organization gives a clearer picture of the contribution it can make to help children in need across the globe. Amway’s vision is to help people live better lives. It does this every day by providing a low-cost low-risk 8


business opportunity based on selling quality products. Amway is one of the world’s largest direct sales companies. It has over 3 million Independent Business Owners (IBOs) Worldwide. UNICEF

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 such as cookware and water treatment 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. In order to give many of the world’s children a chance to live a better life, Amway launched the global One by One campaign for children in 2003. The One by One 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 at a high level.

Amway encourages staff and IBOs to support its One by One campaign for children. Since 2001, Amway Europe has been an official partner of UNICEF and has been able to contribute over €2 million (about £1.4 million). The focus is on supporting the worldwide ‘Immunisation Plus’ programme. This involves, for example, providing measles vaccines to children across the globe. The ‘Plus’ is about using the vehicle of immunisation to deliver other life-saving services for children. It is about making health systems stronger and promoting activities that help communities and families to improve child-care practices. For example the ‘Plus’ could include providing vitamin A supplements in countries where there is vitamin A deficiency. Since 2001, Amway and its IBOs across Europe have been supporting UNICEF’s child survival programme.

Developing a strategy

A strategy is an organizational plan. Implementing a strategy involves putting that plan into action. In other words a strategy shows how a business will achieve its goals. The strategy thus enables an organization to turn its values into action. Values are what a company stands for. An important value for Amway is being a caring company. Amway believes in demonstrating this caring approach and this is why it has partnered with UNICEF. All Directors design strategies for the whole of an organization. Effective strategies involve discussion and communication with others. The views of IBOs are influential influential in creating strategies for Amway. Amway’s strategies for corporate corporate social social responsibility responsibility are cascaded through the organization as shown below: Amway’s Global Cause strategy involves creating responsible plans that make a difference. However, the strategy is flexible. In shaping the strategy, research was carried out to find out which global causes IBOs suppor support. t. The results results showed showed that many many favour favoured ed a cause cause that that helped helped childr children. en. There There was was a clear clear fit betwe between en Amway Amway’s ’s aims to help children and UNICEF’s ‘Immunisation Plus’ programme for children. From the outset, Amway set out some clear objectives for its strategy. These were to: • • •

build loyalty and pride among IBOs and employees enhance Amway’s reputation as a caring organization make a real difference to human lives. 9


In 2005 Amway UK’s partnership was deepened through becoming an official Corporate partner of UNICEF UK. The Corporate Partnership is a closer longer-term relationship which benefits both partners. Working together the two parties raise money for UNICEF.

Q. How are principles of corporate social responsibility being followed by Amway?

Corporate Social Responsibility (CSR) means businesses and organisations working responsibly and contributing positively to the communities they operate in. It involves working with employees, their families, the local community and society at large to improve their quality of life. Companies that operate in a socially responsible way strengthen their reputations. In business, reputation is everything. It determines the extent to which customers want to buy from you, partners are willing to work with you and your standing in the community. 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 worldwide. It is a family-owned business with a strong emphasis on family values. Its IBOs are often couples. Many of these 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 UNICEF, the United Nations Children's Fund.

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' Amway programmes

In order to give many of the world's children a chance to live a better life, Amway launched the global One by One campaign for children in 2003. The One by One programme: •

helps Amway to bring its vision to life

•

declares what the company stands for

•

builds trust and respect in Amway brands 10


•

establishes Corporate Social Responsibility at a high level.

Amway encourages staff and IBOs to support its One by One campaign for children. Since 2001, Amway Europe has been an official partner of UNICEF and has been able to contribute over â‚¬2 million (about £1.4 million). The focus is on supporting the worldwide 'Immunisation Plus' programme.

This involves, involves, for example, example, providing providing measles vaccines vaccines to children across across the globe. The 'Plus' 'Plus' is about using the vehicle vehicle of immunisation to deliver other life-saving services for children. It is about making health systems stronger and promoting activities that help communities and families to improve child-care child-care practices. For example the 'Plus' could include providing vitamin A supplements supplements in countries where there is vitamin A deficiency. deficiency. Since 2001, Amway and its IBOs across Europe have been supporting UNICEF's child survival programme. The need is great. One out of ten children in Kenya does not live to see its fifth birthday, largely through preventable diseases. Malaria is the biggest killer with 93 deaths per day. Only 58% of children under two are fully immunised The work of the One by One programme is illustrated by a field trip undertaken by Amway IBOs to Kenya. The IBOs travelled to Kilifi in 2006 to meet children and to find out what the problems are in various communities. They act as champions spreading the message throughout their groups. In Kilifi, the focus is on trying to reach the most vulnerable children and pregnant mothers. The aim is to increase immunisation from 40% to 70%. Other elements of the programme involve seeking to prevent the transmission of HIV/AIDS HIV/AIDS to infants. As the Amway organisation grows and prospers, it is able through CSR actions to help communities to grow and prosper too.

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Q.5 What do you understand by strategy? How does Amway develop and implement its strategy? strategy?

A strategy is an organizational plan. Implementing a strategy involves putting that plan into action. In other words a strategy shows how a business will achieve its goals. The strategy thus enables an organization to turn its values into action. Values are what a company stands for. An important value for Amway is being a caring company. Amway believes in demonstrating this caring approach and this is why it has partnered with UNICEF. All Directors design strategies for the whole of an organization. Effective strategies involve discussion and communication with others. The views of IBOs are influential in creating strategies for Amway. Amway’s strategies for corporate social responsibility are cascaded through the organization as shown below: Amway’s Global Cause strategy involves creating responsible plans that make a difference. However, the strategy is flexible. In shaping the strategy, research was carried out to find out which global causes IBOs support. The results showed that many favoured a cause that helped children. There was a clear fit between Amway’s aims to help children and UNICEF’s ‘Immunisation Plus’ programme for children. From the outset, Amway set out some clear objectives for its strategy. These were to: •

build loyalty and pride among IBOs and employees

•

enhance Amway’s reputation as a caring organization

•

make a real difference to human lives. 12


In 2005 Amway UK’s partnership was deepened through becoming an official Corporate partner of UNICEF UK. The Corporate Partnership is a closer longer-term relationship which benefits both partners. Working together the two parties raise money for UNICEF. From the outset, Amway set out some clear objectives for its strategy. These were to: •

•

build loyalty and pride among IBOs and employees enhance Amway's reputation as a caring organisation make a real difference to human lives.

In 2005 Amway UK's partnership was deepened through becoming an official Corporate Partner of UNICEF UK. The Corporate Partnership is a closer longer-term relationship which benefits both partners. Working together the two parties raise money for UNICEF

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