As a birthday gift this week, my sister gave me a red glass heart INSPI(RED) ornament by Hallmark.  Not only is it pretty and a sentimental gift from my only sister, it was even more meaningful because she knows how much I believe in business playing a role in addressing global concerns.  Part of the purchase price of the ornament goes to helping eliminate AIDS in Africa.  The perfect birthday gift for me!!

That birthday gift started me on a roll.  Today I decided to break down and buy an iPod shuffle to help with my annual New Year’s Resolution of going to the gym more often.  In the Apple store, I decided (especially for the same price!) to get the (PRODUCT)RED Special Edition - I was going to buy one anyway, I can find red in my purse, and I know my purchase would be doing a little bit to help the RED effort on AIDS.  After I got home, I realized while I knew RED was associated with Bono, but I did not know enough about the details so I went surfing to http://joinred.com as instructed by the little card that came with my shuffle.   I found out that (RED) was created by Bono and Bobby Shriver, Chairman of DATA “to raise awareness and money for The Global Fund by teaming up with the world’s most iconic brands to produce (PRODUCT)RED branded products. A percentage of each (PRODUCT)RED product sold is given to The Global Fund. The money helps women and children affected by HIV/AIDS in Africa.”  I was especially interested to read that RED is a brand designed to engage business and consumer power in the fight against AIDS in Africa. “(RED) works with the world’s biggest brands to make unique (PRODUCT) RED-branded products and direct up to 50% of their gross profits to the Global Fund to invest in African AIDS programs with a focus on the health of women and children. (RED) is not a charity or “campaign.” It is an economic initiative that aims to deliver a sustainable flow of private sector money to the Global Fund… (PRODUCT) RED launched on March 1, 2006 in the UK and on October 13, 2006 in the US. Current product partners include Converse, Gap, Motorola, Emporio Armani, Apple, Hallmark, and American Express (UK only). “  To date, their partners’ (PRODUCT) RED contributions to the Global Fund have reached over $50 million.  VERY impressive!!

Food for Thought: 

So while they aren’t labelled or discussed this way on the website, (PRODUCT)RED items are considered “for benefit” products.  A “for benefit” product is one which is developed purposefully to generate dollars to support a cause.  A percentage of every sale of the product is allocated to tackle the identified social issue.  For benefit products are a great way to enlist consumer support and buying power to raise dollars.  All good, right?  I know such offerings definitely influence my purchasing decisions as a consumer - I love opportunities to “do double duty” with what I buy.  However, I know from my discussions with some business thought leaders committed to social innovation, there are concerns about some for benefit products generally.  (NOTE: I am not making any accusations about (PRODUCT)RED by mentioning this.)  Sure, for benefit products “do good” by raising dollars but some business folks are concerned about how some of these products were sourced.  Were they produced in ways to minimize potential negative environmental and social impacts?  No huge nasty smokestacks or sweat shops paying slave wages, right?  Because wouldn’t that be sort of an oxymoron - produce products which raise money, perhaps to address some of the conditions exacerbated by the production of the product? Hmmm.. 

Interesting to think about…what are your thoughts on for benefit products?  For now, I personally will keep buying for benefit products as I find them and assume the best.