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Friday Aug 10, 2007
Johnson & Johnson puts the heat on The American Red Cross
Johnson & Johnson are suing The American Red Cross after they allegedly violated an agreement made over 100 years ago. The violation related to use of the logo to sell products – in this case health & safety kits sold by the American Red Cross to generate income for their disaster relief work (you can check out the store here).Putting aside the obviously unpalatable prospect of an global business giant suing a charitable organisation that has carried out live saving work for over a century, this raises some really important issues and questions for charities and businesses alike.
Driven by the rise of the ethical consumer, brands and businesses have become increasingly ethically conscious – Marks and Spencer's Plan A being a great example. This means charities no longer have the bragging rights on "doing good" – introducing an element of competition which is causing considerable nervousness in the non-profit world.
On the flip side, non-profits are becoming more commercially savvy – and the private sector is also facing some commercial competition from charities.
So, is this law suit an inevitable by product of the line between charities and businesses blurring?
If The American Red Cross did violate their agreement with Johnson & Johnson, does the fact that they're a well loved charity that does fantastic work make it "OK"?
If charities are going to compete with the private sector for punter's hard earned cash, as a sector do we have the skills and savvy to take on "big business" and win?
Posted by Sam Thomas ( 8:41 AM ) Link to this post Comments[0]