What to Do When Your Cause Program Comes Under Attack (Ad Age GoodWorks)
As Red Parent Global Fund Faces Allegations, Cone Offers Steps for Diffusing Consumer Concern
Feb 4, 2011 11:55 AM ET
What to Do When Your Cause Program Comes Under Attack
The Global Fund to Fight AIDS, Malaria and Tuberculosis in Africa is under fire after revealing "grave misuse of funds" in four countries where it operates. The fund released its report last year, but an Associated Press story brought renewed attention to the situation last week, revealing the Global Fund is demanding the recovery of $34 million in grants out of $13 billion.
In the U.S., the development fund may be better known as the organization behind the (PRODUCT) RED brand. (RED) is backed by a house of iconic brands, including Starbucks, Apple, Nike and American Express, that have helped generate more than $160 million for the fund through licensing agreements to sell (RED)-branded merchandise. Its notable approach, all-star backing (Bono was a founder) and consumer appeal have made it a poster child for cause branding.
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