I find it hard to believe that no additional dollars were spent to market RED than would have been spent otherwise. In 2006, the year of RED’s launch, GAP alone spent $91 million more than they had the previous year on marketing expenses. How much of this was associated with RED’s launch? How much more did the other companies spend than they would have? Only RED has the power to make this information public and give consumers the knowledge they need to decide if RED is an effective philanthropy model that they wish to support. But you have continued to conceal that information, shirking the issue once again by saying the marketing expenses are irrelevant. I’d argue they are essential. The $100 million expense I quoted can be found in many articles online, (such as this one ) , but its true that this quote is an estimate. Some estimate it to be much higher, but only RED has the ability to make that information known. The question remains….why don’t you? I remain unsatisfied by your response and reiterate my challenge to RED to release its marketing expenses. If you wish to qualify those expenses by showing how many of those marketing dollars would have been spent by these same corporations with our without RED, you should….but in GAPs case it seems clear that there was a substantial marketing increase exactly timed with the RED launch.
I also contest the premise that the only way to engage corporations to increase their giving to the Global Fund is through RED’s model. In fact, Chevron just made a $30 million donation to the Global Fund this year. If just one company is able to contribute half of what RED has accomplished, without any marketing expenditures, imagine how much more could be raised for the Global Fund if all the RED partner companies did the same.
Moreover, it looks like none of the RED parter companies are exemplary performers in terms of the percentage of their overall profits that they donate to charities. All donate 1.1% of earnings or less, but are perhaps perceived by many consumers as leaders in corporate giving because of their association with the RED campaign and the heavy marketing done to brand these companies as socially responsible. This measure is much more significant the total RED sales proceeds a company many generate, but it is far from the only measure consumers need to be aware of when deciding which companies are responsible enough to warrant their patronage. We need to be dynamic in our assessment of corporate social responsibility, factoring in company’s giving percentages but prioritizing the sustainability of their business model, ensuring that the products we buy are made with fair labor standards that are environmentally sustainable.
RED claims to have a unique way to encourage corporate social responsibility, by giving financial incentive to companies to brand themselves that way. Has RED accomplished greater corporate responsibility, or rather a more effective branding strategy to appeal to consumers who want to do good? I think a strong case can be made for the latter. Not only are RED partner companies are not the most exemplary givers, but they under-perform on many other social and environmental fronts. GAP, for example, has a long and notorious relationship with sweatshops . If we’re going to increase consumer awareness around socially and environmentally responsible businesses, lets promote those companies that perform the best in those categories. What RED has effectively done is to allow companies that are not particularly responsible to buy a socially-responsible image.
You stated that RED ‘does not replace charity, volunteerism, government participation and other avenues to help.’ I’m concerned that this may not be accurate. Surely, there are many RED customers with diverse backgrounds and viewpoints. But I fear that there is a strong possibility that many RED product buyers will feel like they’ve done their part once they’ve bought RED products. Indeed, this seems to be the message from RED’s own marketing campaigns, such as Dell’s RED laptop ad, where the RED laptop owner is celebrated by everyone he greets in the city, admired for having saved lives, he even gets a kiss from a random beautiful woman. What more does this hero need to do to be a responsible consumer? Apparently nothing. And even if not every RED customer believes that they’ve done their part after they buy their RED products, those who do end up convincing themselves of this, with the help of RED’s ads cheering them along, are potential consumer activists lost to RED’s misleading marketing. And right now, to confront today’s critical problems not limited to AIDS but including workers’ rights, global warming, etc., we need a new army of well-educated consumers supporting the most progressive and sustainable business practices available.
Finally, to return to the issue of RED’s failure to be transparent about the effectiveness of its model, readers of this discussion should know that many months ago, Ben Davis of the Buy (Less) Crap coalition , who shares many of my criticisms of the RED campaign, issued a similar and more comprehensive challenge in a letter to RED CEO Bobby Shriver, and has received no response. I have only recently discovered Ben’s letter, but I believe it addresses my primary concerns with RED even better than my initial challenge to Ms. Cordua did. Mr. Davis’s challenge on RED were:
1) RED and its partners provide administrative transparency. Let consumers know exactly what has been spent, by whom, and on what. Just as non-profits must provide administrative accountings of how they spend our donations, let RED and its corporate partners be proud of their accomplishments and disclose the figures publicly. This will genuinely answer questions and address consumer concerns.
2) Adopt reformed contribution models that make clear how much money goes to The Global Fund with each purchase—replacing the current models that do not. Consumers require the confidence of knowing exactly how much money goes to charity with each purchase. Remove all doubt and include this information right on the price tag.
3) Make it possible and easy to donate to The Global Fund directly—without requiring a purchase—via clear web links and by installing informational kiosks and/or clearly marked ways to give at check-out counters in retail locations. Doing this would eliminate consumer confusion and cynicism about RED partners and their contributions. And, the links and kiosks would increase awareness about the African AIDS crisis and create a new and valuable stream of money to help save lives.
My initial challenge specifically pertains to the first point, but all of these are excellent ideas. RED can spin the PR wheels as much as it likes and convince many an uncritical mind that it is accomplishing something, but until RED can be transparent about the marketing expenses of its partner companies vs proceeds generated, it cannot be viewed as a legitimate model.