Corporate Governance and Sustainable Growth of Thailand’s Direct Selling Industry: A Case Study of Aiyara Planet Company Limited

Abstract

This research article aimed to 1) examine the relationship between corporate governance and the sustainability of Thai direct selling businesses, using Aiyara Planet Company Limited as a case study, and 2) propose strategies for promoting corporate governance to support the sustainability of Thai direct selling businesses. The study employed a qualitative research approach based on transdisciplinary research. The 16 key informants were divided into four groups: experts and individuals involved in regulatory mechanisms, media representatives and academics, senior independent distributors, and mid-level independent distributors. They were selected through purposive sampling. Data were collected through in-depth interviews, oral history interviews, focus group discussions, and documentary research, including the company's financial statements. Data were analyzed using social interpretation. The findings revealed that 1) corporate governance was linked to the sustainability of direct selling businesses through two key mechanisms: a trust cycle arising from four dimensions of corporate governance, namely transparency, accountability, fairness, and participation, which fostered stakeholder trust; and the organization's ability to adapt and respond to crises. The company's financial performance showed a recovery from a net loss of THB 4.5 million in 2019 to a net profit of THB 55.9 million in 2024. When considered alongside qualitative data, this reflected the links among corporate governance, stakeholder trust, and business continuity; and 2) strategies for promoting corporate governance should be implemented in an integrated manner at three levels: organizational, industry, and policy, covering all four interconnected and mutually reinforcing dimensions of corporate governance to support the long-term sustainability of Thai direct selling businesses.