The CSR Newsletters are a freely-available resource generated as a dynamic complement to the textbook, Strategic Corporate Social Responsibility: Sustainable Value Creation.

To sign-up to receive the CSR Newsletters regularly during the fall and spring academic semesters, e-mail author David Chandler at david.chandler@ucdenver.edu.

Monday, November 9, 2009

Strategic CSR - Sports sponsorship

The article in the url below highlights the value of sports sponsorship for firms:

“Sport is a valuable element in corporate community investment because of associations with fair play, health and community and its ability to reach a wide range of consumers.”

There is a risk, however, if a firm’s actions are perceived to be superficial or opportunistic:

“Brands have learned the hard way. Six years ago Cadbury was slammed for its Get Active campaign, where funding sports equipment was linked directly to chocolate sales through a wrapper collection initiative.”

As a result, firms feel it is important to avoid the appearance of acting primarily for marketing reasons:

“Hugh Milward, head of public affairs for McDonald’s in the UK, agrees. He says: “McDonald’s does not need sports sponsorship to sell its food or to create awareness of the brand; we have more effective ways of doing that.” He cites the company’s football in the community initiatives in the UK as a goodwill gesture, saying: “It is a demonstration of our commitment to giving back to the communities in which we serve.””

Clearly for some critics, however, McDonald’s (and others’) claims are not credible:

“Critics, however, argue that if brands such as McDonald’s are not investing money in sport for commercial reasons then they would leave their logos at the door, and not have any branding on show at programmes.”

The value of the article, therefore, is in outlining those conditions under which any cause-related philanthropy works best:

“Corporate responsibility consultant John Luff suggests sponsorship strategies are more likely to be trusted by consumers if they tie in with what the company does. Banks sponsoring playing-fields may be very laudable, but supporting initiatives to improve numeracy skills may be more coherent, and strike a chord with consumers.”

This is the same argument for firms closing down their philanthropy offices or Foundations and moving these responsibilities to a strategic functional department, such as marketing, where the firm’s expertise can determine the area and level of involvement.

Take care
David

Bill Werther & David Chandler
Strategic Corporate Social Responsibility
© Sage Publications, 2006


Analysis: sports sponsorship – The risk of marketing own-goals
Corporate community investment in sport can offer healthy exposure for brands, but must be managed with care
Ben Cooper
May 18, 2009