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GAP, Motorola, and Others Losing Focus on Helping Others

Saturday 31st of March 2007 05:51:18 PM

When the US frontman Bono started the (product)RED charity, which asks large corporations to advertise certain products and give a percentage of the earnings to help those in Africa and other third-world countries, no one could predict the outcome. While companies like the GAP, Motorola, and American Express have donated at least 1% of the earning from products included in the RED campaign, many are sceptical about the amount of money companies have spent on advertising and if they are more concerned with earning money than helping others.

“Cause-related marketing is not a convenient sticking plaster to put over the inadequacies of a brand. Rather, it will serve to draw attention to them by the media so it needs to be approached with eyes open,” said, Sue Adkins, international director of Business in the Community. The real question is whether consumers are better off donating directly to charities instead of buying T-Shirts, cell phones, and credit cards. While the campaign has raised about US$25 million (£12m), could the same amount or more have been raised through traditional fund raising efforts?

The main controversy is whether companies are using charitable causes to increase their overall sales. The answer is more complex than most people can imagine, because it is impossible to really understand why people buy what they buy and when. While using charitable causes as marketing tools may be considered immoral to some, it is providing funds needed.

Regardless of how the money was raised and the cost of advertising, the good news is that 160,000 Africans are receiving the medications needed to survive and countless others are receiving an education. While consumers need to weigh their options before buying T-Shirts and other items, the RED campaign is earning money that will help those who are less fortunate.

(c)Tyler McCombs, www.sxc.hu