Product Red. A comparison of the consequentialist and deontological view: This is my paper’s issue. To entirely register the theme, one has to deal with Cause-Related Marketing in general at first.
Cause-Related Marketing (CRM) is subordinated to Corporate Social Responsibility (CSR) which is comparable to the term Corporate Philanthropy. Basically CSR labels a range of “corporate activities, with the common goal of achieving the ‘triple bottom line’—based on financial, social and environmental objectives.“ (Ponte et al. (2009) p. 302)
Thus, CRM is a kind of marketing, as its task is to sell a product or service “by highlighting the fact that part of the profit or sale price will be donated to a ‘good cause’.“ (Ponte/Richey (2014) p. 67) In most cases the donated amount depends on the volume of sales during the campaign but the purpose is clearly “to benefit the cause and society.” (Conaway/Laasch (2012) p. 111)
The pioneer of CRM – American Express – first used this strategy in the 1980s, when they combined their credit card selling with regional causes in the US, one example being the restoration of the Statue of Liberty. As an effect, they did not only collect money for a good purpose but could also raise their card use tremendously. Since then, the amount of CRM campaigns has increased steadily being boosted by the development of Social Media and globalisation.
Table of Contents
1. Definition and concept of Product Red
2. Product Red: A comparison of consequentialist and deontological views
2.1 Product Red's effect on Solving the Problem of AIDS
2.2 Ethical Theories
2.2.1 Consequentialism
2.2.1.1 Definition
2.2.1.2 Consequentialist view of Product Red: Companies
2.2.2 Deontology
2.2.2.1 Definition
2.2.2.2 Deontological view of Product Red: Consumers
2.2.3 Comparison
3. Sustainability of Product Red
Objectives and Research Themes
This paper examines the business model of Product Red through the lenses of consequentialist and deontological ethical theories to evaluate its impact on humanitarian efforts and corporate responsibility. It investigates the effectiveness of Cause-Related Marketing in addressing the global AIDS crisis while questioning the moral implications of consumer-based philanthropy.
- Analysis of the Cause-Related Marketing (CRM) business model.
- Evaluation of Product Red’s specific contribution to the fight against AIDS.
- Application of Consequentialist ethical theory to corporate participation.
- Application of Deontological ethical theory to consumer behavior and motivations.
- Discussion on the sustainability and long-term impact of Brand Aid initiatives.
Excerpt from the Book
2.2.1.2 Consequentialist view of Product Red: Companies
Utilizing the theory of consequentialism in the analysis of Product Red, it is standing out, that the participating companies can be seen as a typical example for the teleological orientation.
Certainly, it is tempting for companies to join Product Red just to reap profit in the short run. Product Red’s philosophy especially emphasizes that it is “not [meant to be] charity”. (Dyer (2006), p. 263) It „thus presents itself as a business model [...] contributing to an emergency, not a cause.“ (Wirgau et al. (2010) p. 618) The background behind this strategy is, that the founders of Red doubt the sustainability of this kind of initiative without bringing income to companies. (Wirgau et al. (2010) p. 620) According to the rules, it is even prohibited to donate all the profit to The Global Fund. (Wirgau et al. (2010) p. 318) Nevertheless, with this statement, it is not meant to just generate present profits but to “commit [...] to a multi-year partnership.” (Ponte/Richey (2014) p. 80)
However decisively, it would not be that profitable for businesses to invest in Product Red if they did not pursue long-term benefit, as it is necessary to pay a fee to enter the initiative. (Ponte/Richey (2014) p. 80)
The advantages resulting from CRM are mostly to be able to fulfill the consumers’ growing expectation for firms to engage in some form of CSR. In consequence, an increase of sales and consequently the maximization of profit can be achieved. Thirdly the brand’s image can be improved. As a secondary effect, the growing motivation of employees can be mentioned. This happens because socially engaged companies have an attractive impact on staff. (Cone et al. 2003, S. 95 f.; Wieser 2005, S. 47) (Stumpf (2014) p. 29)
Summary of Chapters
1. Definition and concept of Product Red: This chapter introduces the theoretical landscape of Cause-Related Marketing (CRM) and defines the business model behind Product Red as a form of corporate philanthropy.
2. Product Red: A comparison of consequentialist and deontological views: This chapter analyzes the efficacy of the initiative in fighting AIDS and explores the ethical underpinnings of both corporate participation and consumer purchasing behavior.
3. Sustainability of Product Red: This chapter discusses the long-term viability of the initiative and the potential for balancing corporate profit motives with meaningful social impact.
Keywords
Product Red, Cause-Related Marketing, CRM, Corporate Social Responsibility, CSR, AIDS, The Global Fund, Consequentialism, Deontology, Ethical Theories, Philanthropy, Brand Aid, Consumer Behavior, Sustainability, Humanitarian Aid
Frequently Asked Questions
What is the core subject of this publication?
The paper examines the Product Red initiative, analyzing how it functions as a business model and how it aligns with specific ethical frameworks in the context of corporate social responsibility.
What are the central themes discussed in the work?
The central themes include the intersection of profit and charity, the evolution of consumer expectations regarding social issues, and the moral assessment of corporate humanitarian involvement.
What is the primary research goal?
The goal is to compare Product Red against consequentialist and deontological ethical theories to determine if its business model successfully reconciles the drive for profit with the necessity of social change.
Which scientific methodology is applied?
The author uses a theoretical analysis approach, applying established philosophical ethical frameworks to evaluate empirical examples and industry-specific marketing strategies.
What is covered in the main section of the paper?
The main section provides a detailed analysis of the AIDS-related outcomes, reviews definitions of consequentialism and deontology, and contrasts these theories through the perspectives of participating companies and consumers.
Which keywords best characterize this work?
The most relevant keywords include Cause-Related Marketing, CSR, Product Red, Consequentialism, Deontology, and The Global Fund.
How does the author view the "win-win-win" strategy of Product Red?
The author acknowledges that the model creates a mutually beneficial scenario for the consumer, the company, and the beneficiary, provided that corporate motives remain balanced with the long-term success of the initiative.
Does Product Red actually solve the AIDS crisis according to the text?
The author suggests that while Product Red has made progress and raised significant funds, it should not be viewed as a definitive solution to the crisis, noting that it operates primarily as a business model rather than a purely charitable entity.
What is the specific difference between the companies and consumers in the ethical analysis?
Companies are analyzed primarily as consequentialists driven by long-term profit and brand image, while the consumer's role is explored through both the "warm glow" of giving and the deontological implications of their purchasing power.
- Arbeit zitieren
- Marisa Hohmann (Autor:in), 2016, Product Red. A Comparison of the consequentialist and deontological view, München, GRIN Verlag, https://www.hausarbeiten.de/document/322188
