The CSR Newsletters are a freely-available resource generated as a dynamic complement to the textbook, Strategic Corporate Social Responsibility: Sustainable Value Creation.

To sign-up to receive the CSR Newsletters regularly during the fall and spring academic semesters, e-mail author David Chandler at david.chandler@ucdenver.edu.

Tuesday, September 2, 2008

Strategic CSR - Product (Red)

The press release in the url below contrasts the cynicism it says people feel towards the idea “that we can help poor victims of AIDS in Africa by going shopping” with the notable success of Product (Red) (http://www.joinred.com/):

“Then again, there’s this number: $110 million. That’s the amount of money that (Red) partners have generated for the Global Fund To Fight AIDS, Tuberculosis and Malaria to provide AIDS treatment in Ghana, Rwanda, Swaziland and Lesotho.”

Product (Red) was launched in January 2006 by, among others, Bono and the range of products now available is extensive:

“… now you can buy (Red) phones from Motorola, (Red) iPods from Apple, (Red) greeting cards from Hallmark, (Red) laptops from Dell, (Red) shoes from Converse and (Red) watches from Emporio Armani.”

In spite of this success, however, the author outlines three reasons for concern that expose the limitations of such campaigns. The first reason argues for greater transparency among the participating firms:

“… if all these companies want credit for supporting a good cause, we ought to be able to know how much financial support they are actually delivering.”

The second reason questions whether consumption provides a sustainable solution to any social problem:

“But Americans already consume way too much stuff. The message of Product (Red) is that we can buy that new cell phone or wrist watch and feel good about it because we are helping victims of AIDS.”

And, the final reason raises the potential that Product (Red) might result in an overall decrease in social engagement:

“But what if, after buying that Gap T-shirt, consumers feel they’ve done their part? What if Product (Red) becomes a substitute for either activism or charitable giving?”

Take care
Dave

Bill Werther & David Chandler
Strategic Corporate Social Responsibility
© Sage Publications, 2006
http://www.sagepub.com/Werther

Better (Red) Than Dead
Marc Gunther
CSRwire Weekly News Alert
August 5, 2008
http://vcr.csrwire.com/node/9680