Project RED may be misleading consumers in how much money from its branded products actually goes to medical research, says a new paper from the Institute for International Law and Justice at New York University’s School of Law.

Sarah Dadush, the research fellow who presented her findings at an NYU conference last week, says the popular campaign claims to have generated $135 million in donations to the Global Fund to Fight AIDS, Tuberculosis and Malaria since 2006.

However, the lack of transparency regarding how Project RED raises money and how much the corporate partners benefit from the sales of charitably-branded products is troubling, Dadush says:

In some ways Red toes a difficult line: It aims to inspire and mobilize consumers to think charitably and Buy Red without turning them into actual donors. For the consumer, this can be confusing in as far as it is neither clear what is being asked of them, nor what the consequences are of acceding to this request. On the one hand, consumers are being beckoned to make purchases that are meaningful and important because they will “save a life.” On the other hand, consumers are being told that their purchase does not actually constitute a charitable act. …

Another risk of un-transparency is that unless the precise percentage or dollar amount of the sale price going to the Global Fund is clearly disclosed on Red items, consumers may make decisions based on mistaken and inflated assumptions of the beneficial impact of their purchases.

If issues of corporate social responsibility are of interest to you, read the whole paper. Fascinating.

(via AidWatchers.com)