Assessing The Business Value Of Forever Living And Amway In USA And Australia: A Social Ethics Essay.

Forever Living in the USA

Discuss about the Case Study of Forever Living in USA and Amway in Australia.

Business value assessment is a process to assess the business value to calculate the matrix based on the value index and risk index. Moreover, the companies form a team to help the management to capture, draw and measure the business values for coming round current situation in order to achieve the benefit-based business objective (Agan et al., 2016). In this study, Forever Living in USA and Amway in Australia are chosen for assessing the value of the companies in social ethics. Country-based social differences are also explained along with issues dealing with social reports of these two companies.

Forever Living in the USA

Forever Living started its journey from the USA and it is active in more than 150 countries. It is in manufacturing, marketing and distribution field and the product line is included detergent, toothpaste and dozen products making of aloe.  

Forever Living Products International (FLPI) is multi-level marketing company and it is a privately-held organisation based in Scottsdale, Arizona, the USA. The organisation was established in 1978. It is in manufacturing, marketing and Distribution Company and it mainly manufactures Aloe Vera and bee-based products. Forever Living manufactures the cosmetics products, personal care products and nutritional supplements. In the year 2015, the company was reported to have more than 4,400 employees and a network of 9.8 million distributors (Foreverknowledge.info, 2018). People who are associated with this business need to convince people and the people should learn and spend some money on my knowledge. Forever Living follows the distribution system that looks like a pyramid scheme.

Amway in Australia

Amway Australia is in multi-level marketing and it is another private-held organisation. The organisation was founded in the year 1959 and it serves in a worldwide basis. Amway has the products lines like Nutrilite, Gilster, G&H, Amway Queen, eSpring, Atmosphere, XS Energy and Artistry (Amway.com.au, 2018).

Amway does it business in a pyramid scheme and it is in the direct selling. Amway has the distributors and it is referred to as independent business owners (IBOs). The IBOs can earn the money by personal selling of the products and they can earn performance bonus as well. The distributors receive a percentage of merchandise when they sell the products. In the year 2006, Amway introduced its Professional Development Accreditation Programme where the organisation assures to provide quality standards (Amway.com.au, 2018).

Amway in Australia

Forever Living

Forever Living has always been given utmost respect for nature and it has always been environmentally conscious. Forever Living has been facing the issue of ‘greenwashing’ as it is the use of marketing in order to portray an organisation’s activities, products or policies of an organisation to be environment-friendly (Buckler, 2017). The challenge of the organisation is to be more eco-friendly and it is not just based on silencing of the critics. Forever Living wants to be more eco-friendly in order to avoid the term greenwashing. The organisation has sought the certification of International Organisation for Standardisation. The organisation has been facing the issue of CSR in two perspectives, waste generation and waste recovery. The major issue of CSR is to harnessing the progress of waste reduction by 50% and the organisation needs to follow the recycling of the products. The organisation has been facing the issue of carbon footprint and it wants to increase the efficiency of converting CO2 into Oxygen as 20 aloe vera saplings are equal to 1 large tree (Foreverknowledge.com, 2018).

Amway Australia

Amway Australia invests to develop the society beyond the business advantages for persons. At Amway, the organisation believes in using the business and passion of the people. Amway wants to help to solve the global challenge and develop the communities. Amway provides societal values to offer best-in-class products in order to assist individuals in building and maintain the healthier communities, bodies and homes (Amway.com.au, 2018). Amway has also been facing the challenges regarding incorporating the sustainability attributes in business practices. Amway has been growing and expanding the stakeholders’ expertise, awareness and passion for the sustainability The organisation has been facing the challenges regarding making the environmental footprint by conserving the resources, harnessing the alternative energy solutions, reducing waste and using cutting edge technology. As stated by Matulich & Currie (2016), Amway publishes CSR report and the sustainability report so that looks like a good corporate citizen by investing expertise, time and resources to develop the quality of daily life and inspire the issues within communities where the organisation operates. Amway has to listen to stakeholders in order to recognise the sustainability strategy. Stakeholders must be engaged in order to protect the environment and commitment towards the helping the local communities (Gray et al., 2014).

Forever Living organisation sets the Sustainable Development Goals (SDG) to reduce the waste consumption as the organisation wants to brag minimal changes just to keep up with the environmental trends. Forever Living wants to assess the practices, re-evaluate the plans and make changes on company policy. Forever Living is the US-based organisation where the companies want to make affordable and clean energy so that it can consume a large amount of non-renewable energy. It wants to increase the recycling of the products and it wants to do responsible consumption of the production. First SDG of the organisation is ‘Responsible consumption and production’ as the organisation requires o have economic growth along with sustainable development in the USA. The organisation urgently requires decreasing the ecological footprint by altering the way it produces and consumes the goods and products. Forever Living is based on agriculture as the organisation agriculture based organisation is the biggest user of water worldwide (Mintz, 2016). Another SDG is ‘Affordable and clean energy’ as the organisation wants to use clean energy as the US along with global population is continuing to rise. As stated by Parsa et al., (2015), efforts towards encourages clean energy can result to lower the consumption of non-renewable power.

Forever Living's Environmental Consciousness

Amway Australia follows CSR quite significant way as it is inherent component in the long term as the business strategy shapes the value system that supports the company’s mission and vision. Amway Australia follows the broader framework which covers the values with behaviour to ensure the sustainable work environment. Amway Australia targets to build ‘Sustainable communities’ as one of the SDG. In recent time, more than half of the world population live in the urban section. Amway Australia understands that without focusing on the significant transforming the way it builds and manages the urban spaces. Therefore, the rapid growth of the developing cities in Australia coupled with enhancing the urban and rural migration that that leads to boom mega-cities (Plambeck & Taylor, 2015). In addition, Amway Australia focuses on the climate change issue as the ethos of the organisation is to consistently give back to contribute to the society. The philosophy of Amway is to carry forward the wellness of society for the next generation. Climate change effects mainly comes from the greenhouse gas emission and global-warming causes the climate change mainly. The organisation wants to reduce the carbon footprint that threatens the irreversible consequences. In Australia, Amway wants to help vulnerable communities to adapt with climate change to integrate disaster risk.  

Inclusivity principle is about social and ethical accounting which reflects on opinion and views of principal stakeholders. Forever Living makes a potential committee with the stakeholders in order to do market research to make the process to single set of objective. On the other side, Amway Australia stakeholders do collaboration in decision-making problems in CSR. Comparability is another principle of the performance that needs to be judged to compare the assessment value (Russell-Smith et al., 2015). Forever Living follows the external benchmark process for largest selling of the products by the network. Amway Australia spends money on the social activities and it focuses on supply of the products to the network on time. In addition, completeness is the principle of the company where the organisations check systematically areas where they can miss. CSR report of Amway tells about the sustainable business process and product development. On the other hand, Forever Living allows all the essence of business or to produce the aloe vera trees in environment friendly way. Evolution is another principle and it is not easy to cover up entire company’s footprint; therefore, evolution of the carbon footprint should be there in CSR report. Forever Living tries to decrease the footprint by planting more trees and through less emission of greenhouse gases. Amway Australia takes the initiative to innovate the product development and company’s accountability for the wider public. Management policy and system is about the company’s policies regarding the financial policy and environmental auditing. Forever Living does the systematic policy for the developing organisational report. Amway Australia allows the accounting of social responsibility in reassessing the organisational awareness of CSR. Disclosure is about publishing the reports about accounting and social approaches taken by the organisation for the external and internal audiences (Zadek, 2004). Forever Living uses makes public the social report through website and PR. On the contrary, Amway Australia focuses on publishing the CSR reports for the external and internal audiences to increase company’s legitimacy. External verification can increase the accountability of the organisation and Forever Living has the verification certificate from the International Organisation for Standardisation (Zadek, 2004). Amway Australia takes the permission from Australia government to emphasis on professional quality and they validate the reports through external bodies and agencies. Continuous improvement is the progress of the organisation and it is just not about the retrospective performance of the organisation. Forever Living strives for the future and it tries to improve the recycling of the products. Amway Australia tries to establish the community development and lessen the carbon footprint through ethical and social performance.

Amway Australia's Sustainable Work Environment

Values of Forever Living are the profitable environment where the persons can work with dignity and empathy. It wants to make the balance for the environment and it adheres to the sustainable practices. In addition, it provides promising future for the young generations.

Therefore, Forever Living focuses on the motion-activated, facilities that help to conserve electricity and it prevents unnecessary uses of the energy. Forever Living makes balance in the environment through minimising the operation. The organisation is doing recycling of the products like cardboard, plastic and papers. The organisation is focusing on reducing waste by 60% and the organisation upgrades the equipment through increasing the efficiency. Forever Living is reducing the carbon footprint and it continues to move forward to recognise the ways of reducing the carbon footprint (Uhrich, Koenigstorfer & Groeppel-Klein, 2014). The organisation is upgrading the process of manufacturing, operation process and agricultural practices.   

Amway Australia gives values on free enterprising, personal worth, personal responsibility, partnership and integrity. Amway Australia wants to provide power to a less privileged section of the society, especially to the children to lead a good life. The organisation wants to help the people to live a better life. The organisation wants to lay down the monitoring the process and make a reporting framework. 

Amway has been facing the issue of developing new profitable, innovative and sustainable products and it has been facing the issues of continuously developing sustainability of existing products while balancing cost and consumers' needs. Amway uses the expertise in developing the nutrition to assist the nutritional health of the children around the world. Amway Australia takes the Project Sunrise initiative to educate the children and to provide health and hygiene (Amway.com.au, 2018). Amway has taken the National Project for Visually impaired people in order to improve livelihood enhancement. In order to develop environmental sustainability, the organisation has implemented water conservation programme and it takes the purpose of irrigation.

Conclusion

The organisations need to do social activities to demonstrate media and customers that the organisation takes an interest in broader social contexts that do have direct profit margins or impact on the society. Both the organisations Amway and Forever Living are famous in the field of direct selling and multilevel marketing. Amway is much engaged in the sustainable development and it has its CSR reports where they preach about social sustainability and environmental sustainability. Amway publishes the reports and its initiatives are more to develop the communities and focuses on climate changes. In addition, Forever Living focuses more on waste reduction, recycling and energy efficiency. The surplus of CSR projects is traced by the organisation and they channelize it towards making of funds.

Reference List

A?an, Y., Kuzey, C., Acar, M. F., & Aç?kgöz, A. (2016). The relationships between corporate social responsibility, environmental supplier development, and firm performance. Journal of Cleaner Production, 112, 1872-1881.

Buckler, S. (2017). Imagined Communities Incorporated: Corporate Social Responsibility and Value Creation in a Globalised World. In Corporate Social Responsibility, 3-22.

Caridi, M., Moretto, A., Perego, A., & Tumino, A. (2014). The benefits of supply chain visibility: A value assessment model. International Journal of Production Economics, 151, 1-19.

Community | Amway of Australia. 2018. Retrieved from https://www.amway.com.au/en/about-amway/community/

CSR Report . Forever Living of the US 2018. Retrieved from https://www.foreverknowledge.info/about-forever/forevers-csr/

Gray, R., Adams, C. & Owen, D., (2014). Accountability, social responsibility and sustainability: accounting for society and the environment. Sydney: Pearson Higher Ed.

Cho, C., Michelon, G., M. Patten, D., & W. Roberts, R. (2014). CSR report assurance in the USA: an empirical investigation of determinants and effects. Sustainability Accounting, Management and Policy Journal, 5(2), 130-148.

Matulich, S., & Currie, D. M. (Eds.). (2016). Handbook of Frauds, Scams, and Swindles: Failures of Ethics in Leadership. Florida: CRC Press.

Mintz, S. (2016). Giving voice to values: A new approach to accounting ethics education. Global Perspectives on Accounting Education, 13, 37-50.

Parsa, H. G., Lord, K. R., Putrevu, S., & Kreeger, J. (2015). Corporate social and environmental responsibility in services: Will consumers pay for it?. Journal of retailing and consumer services, 22, 250-260.

Plambeck, E. L., & Taylor, T. A. (2015). Supplier evasion of a buyer’s audit: Implications for motivating supplier social and environmental responsibility. Manufacturing & Service Operations Management , 18(2), 184-197.

Russell-Smith, S. V., Lepech, M. D., Fruchter, R., & Littman, A. (2015). Impact of progressive sustainable target value assessment on building design decisions. Building and Environment, 85, 52-60.

Suliman, A. M., Al-Khatib, H. T., & Thomas, S. E. (2016). Corporate Social Responsibility. Corporate Social Performance: Reflecting on the Past and Investing in the Future. 2(4), 12-15.

Uhrich, S., Koenigstorfer, J., & Groeppel-Klein, A. (2014). Leveraging sponsorship with corporate social responsibility. Journal of Business Research, 67(9), 2023-2029.

Zadek, S. (2004). The path to corporate responsibility. Harvard business review, 82(12), 23-34.