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One More Thing

In last month's survey, we asked if you would be willing to pay more for a product if you knew a portion of its proceeds went to charity. Eighty percent of you said you would if the price was the same or even higher.

Campaigns such as rock star Bono's (Product) RED, from which part of the sales of specific consumer goods went to the global fund to Fight AIDS, malaria and tuberculosis in Africa, contribute large amounts of money to charities. (Product) RED and its corporate partners have contributed more than $59 million to the charity.

Other examples of "products for charity" include a leather jacket from Kenneth Cole sold by Saks Fifth Avenue during the 2006 holiday season for Help USA, an organization that fights homelessness. Bath & Body Works sold an Elton John scented candle, with a percentage of each sale going to the Elton John AIDS Foundation. Gap, Apple Computer and Motorola offer limited-edition red-colored products to benefit (Product) RED.

Macy's developed a T-shirt that benefits LifeBeat, an AIDS-prevention organization. The retailer also created a book, "Kiss and Tell," about celebrities' most memorable kisses — that benefits "Go Red for Women," a program educating women on the risks of heart disease. Macy's web site offers hand-woven baskets made by widows in Rwanda who survived the genocide.

Consumers, tired of high-profile business scandals over the past several years, now put greater value on corporate citizenship. Thus, corporate philanthropy has become a competitive advantage and a requirement for retailers.

Studies have shown that, in most instances, people will indeed pay more for a product that promotes a good cause.


© Glimcher

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