Herbalife uses both the multilevel approach as well as the single-level distributors as part of their sales approach. The multilevel marketing allows the contractor to make commission off of their sales as well as those that they recruit. However, the more popular sales approach in the company is the single-level which accounts for 71-72 percent of the Herbalife members (O. Ferrell, Thorne, & L. Ferrell, 2016). These selling principles are covered by a code of ethics that comes from the World Federation of Direct Selling Association and the Direct Selling Association in the United States (O. Ferrell, Thorne, & L. Ferrell, 2016). Even with this level of ethical monitoring, Herbalife has been accused of being a pyramid scheme. Under a pyramid scheme, investors are promised large profits from recruiting others, but ultimately it is a scheme for top-level associates to make money off the backs of recruited …show more content…
These efforts focused on the company doing the right, honest, and ethical thing (O. Ferrell, Thorne, & L. Ferrell, 2016). These efforts allowed them to achieve goals to prove compliance with the NYSE requirements and also the further development of philanthropic efforts. An Employee Wellness and Live Green program became part of the internal commitment to the socially responsible corporate culture that was being promoted. Even with the legal troubles that Herbalife experienced, they continue to grow with over 8,000 employees worldwide and net sales of approximately $4.5 billion in 2016 (Herbalife, 2018). Herbalife Nutrition has over 8,000 employees worldwide and is traded on the New York Stock Exchange (NYSE: HLF) with net sales of approximately $4.5 billion in 2016. Through the years, Herbalife continues positive developments for the organization through financial growth and successful avoidance of disciplinary