Amway Korea: Creating Shared Value
(9 pages of text)
Amway Korea Ltd. faces both motivations and challenges as it pursues enhancement of the firm's social responsibility in a multi-level marketing industry. This case asks students to consider whether the firm’s social participation can be an effective solution to gain legitimacy and enhance its reputation. Stakeholders and the general public have two different views about the firm’s attempts at corporate social responsibility: the window-dressing view (that the firm is making a distrustful attempt to deceive stakeholders) and the value-enhancement view (that the firm is making a genuine investment to improve its responsibility and stakeholder value). Students are also introduced to the concept of creating shared value, which Amway Korea adopts as a strategic initiative in its role as a corporate citizen.
This case is suitable for a several business courses, including strategic management, international management and business ethics, at both the undergraduate and graduate levels.
- Understanding a unique retail business model (i.e., the multi-level marketing business model).
- Introducing worldwide corporate-level decisions and implementation processes in subsidiaries.
- Evaluating the issues of a firm’s social responsibility in a controversial or stigmatized industry.
- Understanding how organizations gain legitimacy through responsible policies and initiatives.
- Considering the differences between corporate social responsibility and creating shared value.
Korea, Large, 2013
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