On Monday, U2 frontman Bono came to campus to speak about the potential for political activism to address poverty and related social ills. The event was co-sponsored by Bank of America CEO Brian Moynihan. Students should take this opportunity to critically examine the altruistic credentials of both Bank o f America and Product (Red), Bono’s side project. Neither institution provides a satisfactory model for social justice.
Bono has made a name for himself as an activist against HIV/AIDS and poverty in Africa. He co-founded (Product) Red, a charity-oriented business model that lets high-profile brands use the recognizable (Product) Red logo on their products. In exchange, these brands donate a portion of their profits to the Global Fund to combat AIDS, tuberculosis, and malaria.
Although certainly awareness-raising, (Product) Red has been criticized for capitalizing on charitable sentiments—and the attendant social cache—to bolster corporate profits. The effect is something akin to greenwashing, where the social good of a product is less meaningful than branding might suggest. Indeed, during (Product) Red’s first year, companies invested over $100 million in (Product) Red advertisements, while donating only $18 million to the Global Fund.
Of course, some charitable effort is better than none. It would be difficult to argue otherwise. But deploying first-world buying power as a tool for combatting poverty in the developing countries belies the high human cost of producing these products around the world. In particular, the National Labor Committee for Worker and Human Rights has criticized (Product) Red’s contract with GAP, which has historically been tied to sweatshops. (Product) Red, too, has weathered criticisms for not requiring that its vendors maintain anti-sweatshop policies.
(Product) Red’s branding obscures the fact that the high incidence of disease in Africa is exacerbated by extreme poverty, which is in no way helped by consumerism in the U.S.
While (Product) Red does some good in the global fight against disease and poverty, Bank of America’s co-sponsorship of a talk on activism is a parody of “corporate social responsibility.” As the largest bank in the U.S., Bank of America has been one of the most egregious perpetrators of rampant foreclosure since 2008—over 3.6 million homes nationwide. Most recently, the National Fair Housing Alliance accused Bank of America of neglecting the upkeep of homes in lower-income, predominantly minority neighborhoods, contributing to neighborhood decline. This from a bank whose on going predatory lending practices were a large contributor to the 2008 housing crash.
Before Bank of America insinuates itself into conversations about altruism and charity, it needs to reform its business practices at home. Students should take a critical look at Bank of America’s business practices when their CEO comes to introduce Bono; they should also consider the far-reaching impact of the brands promoting the (Product) Red logo.
