Product type Brand Markets Worldwide | Owner (RED) (ONE Campaign) Website red.org | |
Introduced 2006; 11 years ago (2006) | ||
Product Red, stylized as (PRODUCT)RED, is a licensed brand owned by (RED) that seeks to engage the private sector in raising awareness and funds to help eliminate HIV/AIDS in 8 African countries. It is licensed to partner companies including Nike, American Express (UK), Apple Inc., The Coca-Cola Company, Starbucks, Converse, Electronic Arts, Head, Buckaroo, Penguin Classics (UK & International), Gap, Armani, Hallmark (US), SAP, Beats Electronics, Supercell and the YouTube personality PewDiePie. The concept was founded in 2006 by U2 frontman and activist Bono, together with Bobby Shriver of the ONE Campaign and DATA. The Global Fund to Fight AIDS, Tuberculosis and Malaria is a recipient of Product Red's money.
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As part of a new business model, each partner company creates a product with the Product Red logo. In return for the opportunity to increase revenue through the Product Red license, up to 50% of profits gained by each partner is donated to the Global Fund. As Product Red is owned by Red, a portion of the contributions received from the partner brands is assigned as profit. Such an amalgamation of humanitarian aid and for-profit businesses is one example of "ethical consumerism".
In 2012, ONE acquired (RED) as a division of ONE. Both organizations were co-founded by Bono and Bobby Shriver.
The Global Fund
Created in 2002, the Global Fund to Fight AIDS, Tuberculosis and Malaria supports large-scale prevention, treatment and care programs for these three infectious diseases. Today, a quarter of all international funding for HIV/AIDS-related programs, over half for tuberculosis, and almost three-quarters for malaria worldwide comes from The Global Fund. The concept of “performance-based funding” is central to the organization and only those grant recipients who can demonstrate measurable and effective results from the monies received will be able to receive additional financing. 100% of the funds generated by Red partners and events goes to Global Fund programs that provide medical care and support services for people affected by HIV/AIDS in Africa. No overhead is taken by either Red or the Global Fund. Red is the largest private sector donor to the Global Fund, and has generated over $150 million for HIV/AIDS programs in Africa. In November 2013, Jony Ive and Marc Newson hosted an auction at Sotheby's to raise millions for the fund. The event was attended by major celebrities including Bono, The Edge, Hayden Panettiere, and Courtney Love.
Products
Products include:
Criticism
Product Red has been criticized for not having an effect proportional to the advertising investment, for being much less efficient than direct charitable contribution, and for having a lack of transparency with regards to the amount of money going to charity as a percentage of every purchase. Some critics argue that a retail middleman between donor and charity is unnecessary; donors should just give. Like with the Gap website and Campaign Red, some argued that it encouraged consumption of the products, thus, encouraging companies to use the product for publicity, rather than social responsibility. While Product Red has helped give funds and attention to the problem, it does not form a relationship between the donors and recipients. Scholars argue that this sacrifices the purpose of movements such as Product Red. Jessica Wirgau, professor at the Virginia Politechnic institute stated that, "Red not only misses the opportunity to promote civic engagement with its audience but also.... gives corporations the power to decide which causes should be supported and to what degree". Another critique is that Product Red's expansion into traditional fundraising techniques, such as art auctions, undermines its claim to be a different and more sustainable approach to raising money for AIDS. Other critics have pointed out that its emphasis on funding treatment for AIDS sufferers meant that large amounts of the money will ultimately end up with pharmaceutical companies "unwilling to distribute their drugs for free". Many accuse the campaign of profiting by using diseases as a marketing vehicle, for being "cause branding" rather than corporate social responsibility. In the Stanford Social Innovation Review, Mark Rosenman wrote that it was an "example of the corporate world aligning its operations with its central purpose of increasing shareholder profit, except this time it is being cloaked in the patina of philanthropy."
The National Labor Committee for Worker and Human Rights criticised Product Red for its links with Gap, which was historically a target of anti-sweatshop activists, although anti-sweatshop organisation Labour Behind the Label states that Gap has "come further than many" clothing companies to counter exploitation. Gap's Product Red clothes are made in Lesotho, rather than simply for the best price in China (this goes beyond the requirements of Product Red). Labour Behind the Label criticises Product Red for not requiring more measures to protect the rights of the workers who make their products.
Data released in 2007 by Advertising Age claimed retail participants in Product Red including Gap, Motorola and Apple had invested $100 million in advertising and raised only $18 million for The Global Fund. In July 2010, however, Red claimed to have raised over $150 million.
In an attempt to combat the critics, particularly regarding Product Red's Transparency, around 2008, they implemented a calculator to show consumers how many doses of treatment would be received with the purchase of a Red Product. With this, some have stated that, "the campaign offers the illusion of activism without requiring behavioral changes or political engagement". While this critic shows that there are negative aspects of this program, he also states that "it finds a way to generate something positive out of the currently existent system".