Conscious commerce. A new business model, and not just charity. A novel way to bring in change.
These are the many ways of describing a project called RED. RED was launched by Bono, lead singer of the legendary band, U2, and Bobby Shriver, who runs DATA (Debt, AIDS and Trade in Africa) in 2006. The idea is to team up with various companies and come up with red-themed products, and brand them RED. When you buy a RED product, part of the proceeds will be sent to The Global Fund, a public-private partnership focused on prevention and treatment of HIV/AIDS, tuberculosis and malaria. The Global Fund uses this money to give antiretroviral drugs for the treatment of AIDS in four countries of Africa – Swaziland, Ghana, Lesotho and Rwanda.
The companies which are part of the RED program include Microsoft, American Express, Dell, Apple, Gap, Armani, and some others. They have created special versions of their existing products under the RED banner. For instance, Microsoft has a Windows Vista Ultimate (Product) RED version, and Apple has RED versions of its Nano and Shuffle iPods. Dell’s XPS One is a RED product, while Motorola has launched RED versions of Motorazr and Motoslvr. The products sell at the same price as its non-RED counterparts. Most companies have launched red-coloured versions of their products, giving their products a great, new look.
Since the launch of the program, more than $100 million has been by generated by RED partners and events for the Global Fund.
The idea no doubt is great. However, skepticism abounds. Can any good come out of a charity that is driven by businesses, many ask? Bono says that governments cannot fight AIDS alone and need as many partners as possible, and RED is the cool way to do it. Of course, if it were such a great idea, how come many more companies have not joined up so far, more than two years on? The answer could lie in the fact that while the idea is a noble one, some businesses may have found a way to sell their not-so-hot products through the RED channel. Limited options of products could also mean that there are not as many takers as one would like. Companies will have to stick to the age-old ethic of being able to deliver value to their customers, for this project to really do well.
