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Perception of Macao Teachers and Students Regarding Gaming Operators' Social Responsibility

Fanny Vong

Abstract The study brings to the forefront a discussion of corporate social responsibility of gaming operators. It assessed Macao high school students' and teachers' perceptions of the extent of social responsibility being exercised by the six local gaming operators, as well as their support for the operators, and desire for further gaming investment and work opportunities in the gaming sector. The majority of the respondents were not aware of gaming operators exercising socially responsible activities. Among those who were, the majority perceived that only one company was involved and none has participated in protecting the environment, beautifying the city, creating a harmonious environment, treating local staff fairly, and promoting responsible gambling. Five social responsibility factors were identified. Poisson regression analysis indicated that perception of gaming operators' being considerate of Macao's interests was influenced significantly by their contribution to three socially responsible activities.

Keywords: gambling, gaming impact, resident attitude, social audit, social responsibility

Gaming Development in Macao amid the "Financial Tsunami" The recent boom in Macao's gaming sector has come to a slowdown with the outbreak of the "financial tsunami" (worldwide financial crisis caused by American sub­ prime mortgage crisis in 2007) and restrictions on Mainland's Individual Visit Scheme to Macao since the second half of 2008. The Scheme was implemented in 2003 which allows mainland residents from designated cities to visit Kong and Macao on an individual, as opposed to tour group, basis. The objective was to boost tourist arrival to the two cities during the Severe Acute Respiratory Syndrome (SARS) outbreak. Since then, mainland tourist arrival to Macao has set new records every year. The policy took a reverse turn in 2008 limiting the number of visas that can be obtained at a time, lengthening the lapse between visits, and restricting Hong Kong visa holders from making a side visit to Macao. Nonetheless, the gaming revenues collected in the good days had been impressive (Table 1) and had helped Macao cushion some of the economic shock. The latest statistics from the Gaming Inspection and Coordination Bureau (2009) indicated that Macau's gaming revenue had even reached a record high of MOP 109.8 billion (USD13.73 billion) in 2008, a 31% increase from 2007, although there is speculation that Fanny Vong, Ph.D. President, Institute for Tourism it would very soon slip for the first time in years. In 2007, the government rechanneled Studies some of this tax revenue to the community through a "wealth sharing scheme"- giving Colina de Mong Ha a one-off MOP5,000 (USD625) allowance to permanent, and MOP3,000 (USD375) to Macau SAR non-permanent, residents. The same policy continued in 2008, with slight increments Tel: +853 85983183 to MOP6,000 (USD750) to permanent, and MOP3,600 (USD450) to non-permanent, Fax: +853 28521694 residents. Email: [email protected] Website: http://www.ift.edu.mo UNLV Gaming Research & Review Journal+ Volume 14 Issue 1 1

2 2 1 1 14lssue 14lssue Volume Volume Journal+ Journal+ Review Review Research Research Gaming Gaming UNLV UNLV & &

of of manufacturing manufacturing alcohol, alcohol, tobacco, tobacco, gaming, gaming, as as such such industries industries questionable questionable ethically ethically

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investments. investments. equity equity and and properties properties of of devaluation devaluation large large and and loans loans on on back back call call face face to to

had had also also but but expenditure expenditure gambling gambling less less visitation, visitation, lower lower suffered suffered only only not not operators operators

gaming gaming The The tsunami". tsunami". "financial "financial the the by by sour sour turned turned have have elsewhere elsewhere Investments Investments

MOPS MOPS equals equals approximately approximately *USDl *USDl

2009 2009 Bureau, Bureau, Coordination Coordination and and Inspection Inspection Gaming Gaming Macau Macau Source: Source:

109826 109826 83847 83847 57521 57521 47134 47134 43511 43511 30315 30315 Total Total

57 57 44 44 36 36 44 44 60 60 50 50 basketball basketball - lottery lottery Sports Sports

304 304 333 333 273 273 327 327 442 442 510 510 football football - lottery lottery Sports Sports

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636 636 501 501 403 403 437 437 1566 1566 1004 1004 racing racing Horse Horse

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2005 2005 2008 2008 2007 2007 2006 2006 2004 2004 2003 2003 ITEMS ITEMS

million) million) MOP* MOP* (in (in 2003-2008 2003-2008 in in activities activities gaming gaming different different from from revenue revenue Gross Gross 1. 1. Table Table Perception of Macao Teachers and Students Regarding Gaming Operators' Social Responsibility military items or nuclear power to respond to this social pressure through philanthropy, as a way of giving back to the community to achieve common good. Even so, Harris (2005) pointed out that such charitable activities might be tainted with morally marginal business intentions to promote false altruism and whitewash the image of the questionable business operations that might ultimately reinforce sales and consumption. She further questioned the nature of giving of gaming enterprises considering their predatory nature and the minuscule amount donated to community benefits. Financing research in the field is another way companies contribute to the common good. However, there is concern that research may then become biased when the resources come from a sponsor with a vested interest in the outcome. Corporate philanthropy becomes "business decisions" when the philanthropic activities also enhance the corporation's profitability. This concept was elaborated by Porter and Kramer (2002) when they noted a new type of corporate philanthropy, pointing out that "social and economic goals are not inherently conflicting but integrally connected" (p.5). Johnson (2001) argued that if companies were to be held responsible for their societal and environmental impact, a social audit similar to a financial audit would be necessary. He explained that a social audit is a standard process for identifying, measuring and reporting the ethical, social and environmental impact of an organization. According to him, the Council on Economics Priorities is probably the best-known organization in the corporate social responsibility arena. It has been rating firms on 11 categories of social and environmental issues since 1975. These categories include environment, women's advancement, minority advancement, charitable giving, community outreach, family benefits, social disclosure, work-place issues, military contracts, animal testing, and homosexual issues. Among the numerous ethical, social and environmental audits available, one that is similar to IS09000 and IS014000 is SA8000 (Social Accountability 8000), an audit carried out by an independent auditor who certifies that a firm is in compliance with the audit standards, which deal with issues including forced labour, unsafe working conditions, insufficient wages, use of physical punishment and abuse of overseas suppliers. Henriques (200 1) explained the concept of civil society as consisting of informal groupings, movements, voluntary organizations and NGOs that exist alongside the public and private sectors to form the society as a whole. He argued that as organizations grow over time, their connection to the civil society and to the concerns and issues faced by community members weakens and hence it is necessary to have social audits by the civil society to monitor organizations' social and environmental performance over time, as they affect stakeholders such as retailers, employees, local community, shareholders, pressure groups and the environment. Social auditing can be understood as a process of engagement and collaboration with stakeholders. Walle (1995) posited that there were three categories of ethical orientation of organizations: social obligation - contending that the organization's very aim is to pursue profitability and legality; social responsibility -suggesting that powerful and influential organizations should It is necessary to have social act in ethical and socially responsible ways, addressing current audits by the civil society to problems that may arise as a result of their operations; and social "t · t. , . l responsiveness - which, on the other end of the continuum, monz or organzza wns socza demands that enterprises anticipate future developments and and environmental performance address them in a forwarding-thinking and proactive way. over time. Gambling as an activity has always been the subject of controversy. Although casino companies have started to practice corporate social responsibility activities, they may still be blamed for providing unchecked gambling (Lee and Park 2009). The decision to legalize the activity in a destination is based on the belief that the economic gains will outweigh the social costs. The same rationale applies to business operations of other nature, according to Dodd's (1932) argument, as modem large firms are permitted and encouraged by the law primarily because of the benefits and services they bring to the community

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expansion. expansion. gaming gaming further further for for

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2009). 2009). Park Park & & Lee Lee 2007; 2007; Cobran Cobran 2005; 2005; Harris Harris 2003; 2003; Ramsay Ramsay & & Black Black 2002; 2002; McMillen McMillen

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misleading. misleading. or or deceptive deceptive not not is is communication communication the the that that ensuring ensuring and and gambling, gambling,

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capacities capacities their their support support to to is is individuals individuals costs. costs. social social the the mitigating mitigating

all all of of freedom freedom the the respect respect to to observe observe should should provider provider gaming gaming

while while community community the the for for gains gains

the the that that measures measures Other Other purposes. purposes. charitable charitable for for support support provide provide

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and and problems" problems" financial financial

or or personal personal create may may gambling gambling whom whom gaming gaming and and government government the the

for for people people exploit exploit to to aim aim not not does does that that gambling gambling "providing "providing of of

on on fall fall expectations expectations Great Great

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(2003) (2003) Ramsay Ramsay and and Black Black costs. costs. social social the the mitigating mitigating while while

community community the the for for gains gains economic economic maximize maximize to to operators operators gaming gaming and and government government the the

on on fall fall expectations expectations great great Hence, Hence, owners. owners. the the for for generate generate they they profits profits the the than than rather rather Perception of Macao Teachers and Students Regarding Gaming Operators' Social Responsibility According to the statistics provided by the Macao Education Department (2009), there were 5,509 would-be high schoolleavers and 38 registered high schools in Macao in the academic year 2007/08. Invitations were sent to all high schools to attend a talk and a dinner gathering. Representatives from 28 high schools attended the event. Two evening high schools were excluded from the study as their target students are working adults. A total of 550 student-version and 270 teacher-version questionnaires were distributed to the school representatives according to the school size. The school representatives were given instructions to randomly select student and teacher respondents among all qualified candidates in their schools. Finally, 547 student questionnaires and 249 teacher questionnaires were returned.

Results Sample Characteristics Table 2 shows a profile of the sample. In both cohorts, there were slightly more females than males (56.7% in the student and 58.3% in the teacher cohort). All respondents in the student cohort were in the graduating class and were between 16 to 22 years old. The majority of the teacher respondents (56.9%) were between 25 to 34 years old, followed by 17.4% between 35 to 39 years old. Around 21% were over 40 years old. Slightly over 60% of the teacher respondents were married, among whom 43.8% had children. Almost all of them (98.7) had a monthly income of at least USD 1,250.

Table 2. Sample Characteristics Students Teachers N=547 N=249 Gender Male 43.3 41.7 Female 56.7 58.3 Education Senior secondary graduating class 100.0 Completed high school 0.4 Some college 4.6 University or above 95.0 Age 16-22 100.0 18-24 4.6 25-29 27.8 30-34 29.1 35-39 17.4 40-44 6.6 45-49 5.8 50-54 5.0 Above 55 3.7 Marital Status Single 100.0 39.6 Married no kid 16.7 Married with kid 43.8 Monthly Income Less than USD625 n.a. 0.4 USD625.1 - 1250 n.a. 0.8 USD1250.1 -1875 n.a. 33.4 Above USD1875 n.a. 65.3

Descriptive Statistics The students and teachers were asked to identify, among all six gaming operators, how many had contributed to the social responsibility items in question. Multiple response tables were generated for the student and teacher cohorts (Tables 3 and 4). Figures in each column indicate the percentage of votes given to the corresponding answer. For example, in the student cohort (Table 3), for the item "give scholarships to locals", 73% of the student respondents did not know if any gaming operators had offered

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I I

gambling. gambling.

problem problem with with dealing dealing activities activities and and organizations organizations finance finance and and activities. activities. responsible responsible socially socially six six

gambling, gambling, problem problem on on research research

conduct conduct gambling, gambling,

responsible responsible

to to contribution contribution the the in in shared shared had had

promote promote city, city, the the beautify beautify fairly, fairly, staff staff local local treat treat environment, environment,

companies companies

gaming gaming

one, one,

only only

of of

the the protect protect activities: activities: 17 17 of of out out six six in in participated participated company company no no

that that claimed claimed respondents respondents teacher teacher the the of of majority majority the the column, column, instead instead two, two, least least at at that that thought thought

none" none" " " the the at at Looking Looking people. people. local local to to opportunities opportunities training training

and and

teachers teachers more more but but similar similar

development development career career remuneration, remuneration, good good offered offered enterprises, enterprises, local local

quite quite

were were

patterns patterns

response response

for for opportunities opportunities business business created created companies companies six six all all believed that that believed

who who respondents respondents teacher teacher of of 10% 10% over over were were there there nonetheless, nonetheless, teacher teacher and and student student Both Both

that, that, noting noting worth worth is is question. question. in in item item the the to to It It contributing contributing

been been had had company, company, same same the the necessarily necessarily not not but but company, company, one one only only that that answered answered

operators operators gaming gaming the the by by out out carried activities activities responsible responsible socially socially of of aware aware were were who who

respondents respondents teacher teacher the the of of majority majority the the items, items, 17 17 of of out out 12 12 for for that that indicates indicates 4 4 Table Table

2.80 2.80 0.75 0.75 2.24 2.24 5.98 5.98 8.97 8.97 11.96 11.96 6.17 6.17 61.12 61.12 practices practices management management best best Introduce Introduce

3.54 3.54 1.12 1.12 0.00 0.00 0.93 0.93 2.23 2.23 11.92 11.92 13.78 13.78 66.48 66.48 environment environment

working working harmonious harmonious a a Create Create

1.85 1.85 0.37 0.37 0.55 0.55 2.40 2.40 2.96 2.96 12.38 12.38 21.44 21.44 58.04 58.04 fairly fairly staff staff local local Treat Treat

8.19 8.19 1.1213.59 1.1213.59 4.10 4.10 6.89 6.89 26.82 26.82 5.03 5.03 34.26 34.26 locals locals to to opportunities opportunities training training Offer Offer

7.29 7.29 8.41 8.41 1.31 1.31 1.12 1.12 2.43 2.43 13.27 13.27 11.78 11.78 54.39 54.39 locals locals to to

development development career career good good Offer Offer

7.92 7.92 8.68 8.68 0.75 0.75 1.89 1.89 4.72 4.72 15.66 15.66 11.70 11.70 locals locals to to remuneration remuneration 48.68 48.68 good good Offer Offer

0.76 0.76 0.00 0.00 0.76 0.76 2.08 2.08 3.03 3.03 11.74 11.74 17.80 17.80 63.83 63.83 city city the the beautifying beautifying in in Participate Participate

0.37 0.37 0.00 0.00 0.56 0.56 0.37 0.37 2.43 2.43 6.54 6.54 24.67 24.67 65.05 65.05 environment environment the the Protect Protect

7.98 7.98 0.9516.54 0.9516.54 1.71 1.71 3.42 3.42 18.63 18.63 6.27 6.27 44.49 44.49 enterprises enterprises local local

for for opportunities opportunities business business Create Create

5.60 5.60 3.36 3.36 0.37 0.37 1.68 1.68 4.29 4.29 17.54 17.54 5.41 5.41 61.75 61.75 technology technology new new Introduce Introduce

4.66 4.66 0.56 0.56 1.86 1.86 3.72 3.72 7.08 7.08 33.33 33.33 3.91 3.91 44.88 44.88 charity charity to to Contribute Contribute

4.83 4.83 0.56 0.56 2.79 2.79 5.76 5.76 13.94 13.94 26.21 26.21 8.74 8.74 37.17 37.17 image image Macau's Macau's Enhance Enhance

6.02 6.02 0.94 0.94 2.07 2.07 4.32 4.32 6.02 6.02 27.26 27.26 6.77 6.77 46.62 46.62 talents talents local local Develop Develop

1.14 1.14 0.00 0.00 0.38 0.38 0.57 0.57 1.52 1.52 8.37 8.37 7.41 7.41 80.61 80.61 gambling gambling problem problem with with dealing dealing

activities activities and and organizations organizations Finance Finance

2.63 2.63 0.38 0.38 0.00 0.00 0.56 0.56 0.56 0.56 8.82 8.82 9.00 9.00 77.90 77.90 gambling gambling

problem problem on on research research Conduct Conduct

1.50 1.50 2.62 2.62 0.37 0.37 0.75 0.75 0.37 0.37 11.80 11.80 11.80 11.80 70.79 70.79 gambling gambling responsible responsible Promote Promote

2.98 2.98 0.00 0.00 0.00 0.00 0.00 0.00 0.37 0.37 13.59 13.59 10.06 10.06 73.00 73.00 locals locals to to scholarships scholarships Give Give

Six Six Five Five Four Four Three Three Two Two One One None None know know Don't Don't (N=547) (N=547) Students Students

cohort cohort Student Student - items items responsibility responsibility social social on on statistics statistics Descriptive Descriptive 3. 3. Table Table

gambling. gambling. problem problem on on research research conduct conduct and and gambling, gambling, responsible responsible promote promote

environment, environment, harmonious harmonious a a create create city, city, the beautify beautify fairly, fairly, staff staff local local treat treat environment, environment,

the the protect protect activities: activities: 17 17 of of out out six six in in participated participated company company no no that that claimed claimed respondents respondents

student student the the of of majority majority the the column, column, none" none" " " the the at at Looking Looking people. people. local local to to opportunities opportunities

training training offered offered and and enterprises enterprises local local for for opportunities opportunities business business created created companies companies

six six all all believed that that believed who who respondents respondents student student of of 10% 10% over over were were there there nonetheless, nonetheless,

that, that, noting noting worth worth is is It It question. question. in in item item the the to to contributing contributing been been had had company, company, same

the the necessarily necessarily not not but but company, company, one one only only that that answered answered operators operators gaming gaming the the by by

out out carried activities activities responsible responsible socially socially of of aware aware were were who who respondents respondents student student of of

majority majority the the items, items, responsibility responsibility social social 17 17 of of out out 12 12 for for that that indicates indicates 3 3 Table Table

on. on. so so and and had, had, two two believed believed 2.98% 2.98% and and

so so done done had had operator operator one one that that believed believed 13.59% 13.59% scholarships; scholarships; any any offered offered had had operators operators

gaming gaming the the of of none none believed that that believed respondents respondents the the of of 10.06% 10.06% locals; locals; the the to to scholarships scholarships Perception ofMacao Teachers and Students Regarding Gaming Operators' Social Responsibility It is observed that both student and teacher response patterns were quite similar but more teachers thought that at least two, instead of only one, gaming companies had shared in the contribution to six socially responsible activities.

Table 4. Descriptive statistics on social responsibility items - Teacher cohort Teachers (N=249) Don't know None One Two Three Four Five Six Give scholarships to locals 81.56 4.10 10.66 2.46 0.82 0.41 0.00 0.00 Promote responsible gambling 78.10 10.74 8.26 2.48 0.00 0.00 0.00 0.41 Conduct research on problem gambling 88.40 5.40 5.39 0.83 0.00 0.00 0.00 0.00 Finance organizations and activities dealing with problem gambling 87.82 6.72 5.04 0.42 0.00 0.00 0.00 0.00 Develop local talents 50.83 5.42 22.08 7.92 7.08 1.25 0.83 4.58 Enhance Macau's image 48.76 7.58 17.77 11.16 6.61 2.89 0.41 4.55 Contribute to charity 45.23 2.07 22.41 13.28 6.64 3.32 1.66 5.39 Introduce new technology 72.50 2.50 8.75 7.08 4.17 1.67 0.00 3.33 Create business opportunities for local enterprises 49.16 4.20 14.71 9.24 2.94 0.00 1.2618.49 Protect the environment 67.92 21.67 7.08 1.67 1.25 0.00 0.00 0.42 Participate in beautifying the city 61.41 14.11 10.37 4.56 7.05 0.83 0.00 1.66 Offer good remuneration to locals 51.88 6.69 11.72 10.46 3.35 0.42 1.2614.23 Offer good career development to locals 54.39 8.79 10.88 10.88 0.84 0.84 1.2612.13 Offer training opportunities to locals 46.25 1.25 17.50 10.42 4.58 2.08 2.5015.42 Treat local staff fairly 68.33 14.17 12.50 1.25 2.08 0.83 0.00 0.83 Create a harmonious working environment 77.08 6.67 9.58 2.92 1.25 0.00 0.00 2.50 Introduce best management practices 64.44 3.35 10.46 11.30 2.93 3.77 0.42 3.35

The respondents were asked if there was enough community and governmental audit on the exercise of social responsibility by gaming operators. Around 66% and 78% of student and teacher respondents felt there was inadequate audit, respectively. Only 8.4% and 1. 7% of students and teachers felt opposite and the rest of the respondents had no idea.

Factor Analysis A factor analysis was performed on the whole sample to examine the underlying factors of the 17-item social responsible activities bank. The scale of the items ran from 0- no gaming companies contributed to this item, to 6- all six had contributed to this item. "Don't know" and "no companies contributed (0)" responses were combined into one category- "Unaware". This is because perception of the existence or non-existence of a condition or phenomenon is not necessarily based on actual knowledge. According to the MSN Encarta dictionary, perception is an impression, an attitude or understanding based on what is observed or thought. In addition, the author has no means to verify whether the "no companies contributed" responses were based on actual and accurate fact to the knowledge of the respondents. Hence, there is justification to believe that those respondents who did not know about any contribution and those who thought there was no company contributing to socially responsible activities reflected that they were both "unaware" of such activities. Principal components analysis with varimax rotation was used. The sample size used in the analysis was 657 as cases with missing values were excluded Iistwise. KMO was 0.82 and significant, indicating sample adequacy for the analysis. Five factors with a total explained variance of 56.52% were extracted and all factors had an eigenvalue larger than 1 (Table 5).

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necessary. necessary.

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0.86 0.86 city city the the beautifying beautifying in in Participate Participate

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0.47 0.47 locals locals to to opportunities opportunities training training Offer Offer

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(N=657) (N=657) activities activities responsible responsible social social of of components components Principal Principal 5. 5. Table Table

analysis. analysis.

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(2 (2 Protection Protection 5- Environmental Environmental Factor Factor items); items); (3 (3 Practices Practices 4- Management Management Factor Factor

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Factor Factor items); items); (4 (4 Employment Employment and and Business Business 1- Factor Factor labeled: labeled: were were factors factors five five The The Perception of Macao Teachers and Students Regarding Gaming Operators' Social Responsibility Teacher versus Student Perceptions Independent t-test results showed that students and teachers only differed on one social responsibility factor - Responsible Gambling (Table 6). Recall earlier that the scale for the social responsibility items ran from 0- no gaming companies contributed to this item, to 6- all six had contributed to this item. Both student (m=0.28) and teacher means (m=0.1 0) were low, indicating the majority of both cohorts was inclined to perceive that no company was promoting responsible gambling.

Table 6. Independent t-test on social responsibility factors for students and teachers Student Teacher t Sig. (N=547) (N=249) Mean SD Mean SD Business and Employment 1.33 1.44 1.47 1.63 -1.14 0.26 Community Development 0.81 0.86 0.80 0.92 0.10 0.92 Responsible Gambling 0.28 0.74 0.10 0.27 5.10 0.00 Management Practices 0.52 0.84 0.47 0.86 0.67 0.50 Environmental Protection 0.25 0.68 0.36 0.78 -1.88 0.06

Regression Analysis: Consideration of Macao's Interests and Benefits for Macao Descriptive statistics in Table 7 showed several statements gauging both cohorts' perception of gaming operators' consideration of Macao's interests and contribution to its benefits, as well as overall support for the gaming operators and desire for further investment and employment opportunities in gaming. It was observed that among the respondents who were aware of the issues in discussion, the majority of both cohorts (20.9% of students; 19.25% of teachers) thought that no gaming operator had considered Macao's interests. Most respondents (31.09% of students; 38.24% of teachers) did not support any company. Most students (23 .21%) hoped that one gaming operator could invest more in Macao but most teachers (22.13%) did not wish for any further gaming investment. The majority of both students (34.08%) and teachers (63.60%) expressed they did not wish to work for any gaming company, but more strongly so for teachers. Nonetheless, the majority of both cohorts (16.26% of students; 11.11% of teachers) admitted that all six gaming operators had brought benefits to Macao.

Table 7. Overall support, future gaming investment, and employment desirability (Students' N=549; Teachers' N=247) Don't know None One Two Three Four Five Six Students Consider Macao's interests 56.16 20.90 14.93 3.92 1.68 0.56 0.37 1.49 Teachers 63.60 19.25 12.13 2.93 0.84 0.42 0.00 0.84 Students Bring benefits to Macao 41.68 11.40 14.58 7.48 5.05 3.18 0.1916.26 Teachers 56.41 8.12 9.40 5.13 6.41 2.14 1.28 11.11 Students I support this company 24.91 31.09 22.47 10.11 6.18 1.50 1.31 2.43 Teachers 37.82 38.24 13.87 5.04 2.94 0.42 0.00 1.68 Students I hope this company can invest more in Macao 31.51 20.38 23.21 9.06 4.15 1.89 0.19 9.62 Teachers 40.00 22.13 16.60 4.68 2.55 1.28 0.0012.77 Students I'd like to work for this company 25.14 34.08 20.67 9.50 4.10 2.05 0.93 3.54 Teachers 31.80 63.60 2.09 1.67 0.42 0.00 0.42 0.00

Further regression analyses were carried out to understand the association between perceived exercise of social responsibility by gaming operators and perceived consideration of Macao's interests and benefits brought to Macao. All respondents were asked how many among the six gaming operators they perceived had considered Macao's interests and brought benefits to Macao. The responses to the two questions were used as

UNLV Gaming Research & Review Journal+ Volume 14 Issue 1 9 dependent variables, with the five social responsibility factors as independent variables, in two regression equations, each separately for the student and teacher cohorts. Since possible values of the dependent variables were number of counts from 0 to 6 and there was a preponderance of zeros in the responses, Ordinary Least Square (OLS) regression which assumed normal distribution of variables is not appropriate and will likely lead to seriously biased results where the standard errors are deflated. As these two dependent variables follow more of a poisson distribution, a poisson regression was performed for each cohort. The poisson regression model for students predicting perceived consideration of Macao's interests from the five social responsibility factors was statistically significant with likelihood ratio chi-square= 165.88, df=5, yielding p-value <.001. Table 8 shows the order of importance of the predictors: Management Practices (the expected log count for a one-unit increase in this factor was .57), Environmental Protection (log count=.31), and Responsible Gambling (log count=.17). The poisson regression model for teachers was statistically significant with likelihood ratio chi-square=124.06. df=5, yielding p-value<.OOl. The predictors Responsible Gambling (log count=l.33) and Environmental Protection (log count =.36) were statistically significant.

Table 8. Poisson regression on consideration of Macao's interests Student Teacher N=531 N=238 Mean Std B Std. Wald Mean Std B Std. Wald Error chi- Error chi- square square Constant -1.56 0.12 168.4* -2.31 .19 143.2* Business and Employment 1.31 1.42 0.05 0.58 .75 1.49 1.64 .05 .085 .34 Community Development 0.81 0.87 -.11 .10 1.19 0.82 0.82 .24 .13 3.79 Responsible Gambling 0.27 0.70 .17 .07 5.14* 0.10 0.28 1.33 .22 35.89* Management Practices 0.51 0.82 .57 .06 78.63* 0.48 0.86 .13 .11 1.28 Env. Protection 0.25 0.68 .31 .06 26.09* 0.36 0.79 .36 .11 11.01 * Deviance 1.08 .71 Pearson Chi-square 1.94 1.14 *p<0.05

On bringing benefits to Macao, the same procedure was conducted. The poisson regression model for students predicting perceived benefits brought to Macao from the five social responsibility factors was statistically significant with likelihood ratio chi­ square= 113.63, df=5, yielding p-value <.001. All the five predictors were statistically significant. The poisson regression model for teachers was statistically significant with likelihood ratio chi-square=67.63, df=5, yielding p-value<.OOl. Only one predictor, Business and Employment, was statistically significant. The students' perception of benefits brought to Macao was influenced by Management Practices (log count=0.21), Community Development (log count=0.21), Environmental Protection (log count=0.20), and Business and Employment (log count=0.17). Responsible Gambling was significant but had a negative log count of -0.19, indicating that the students did not consider this as a benefit brought to Macao. On the other hand, the teachers perceived Business and Employment as the only benefit brought by the gaming operators (log count=.31) (Table 9).

10 UNLV Gaming Research & Review Journal+ Volume 14/ssue 1 Perception of Macao Teachers and Students Regarding Gaming Operators' Social Responsibility Table 9. Poisson regression on benefits brought to Macao Student Teacher N=530 N=233 Mean Std B Std. Wald Sig. Mean Std B Std. Wald Sig. Error chi- Error chi- square square Constant Business and Employment 1.32 1.42 .17 .04 18.56 .00 1.48 1.65 .31 .05 32.12 .00 Community Development .82 .87 .21 .07 8.97 .00 .82 .93 .15 .10 2.21 .14 Responsible Gambling .26 .70 -.19 .08 6.14 .01 .10 .28 .45 .25 3.30 .07 Management Practices .51 .82 .21 .06 14.25 .00 .47 .87 .03 .10 .07 .80 Env. Protection .25 .68 .20 .06 12.50 .00 .35 .79 -.01 .10 .08 .93 Deviance 2.52 2.33 Pearson Chi-square 2.86 3.II

Conclusion and Discussion The study assessed a group of Macao high school students' and teachers' perceptions of the extent of social responsibility being exercised by the six local gaming operators, as well as their support for the operators, and desire for further gaming investment and work opportunities in the gaming sector. It is observed that both student and teacher response patterns were quite similar. For 12 of the 17 social responsibility items, the majority of the teacher and student respondents who were aware of the issues in discussion answered that only one company, but not necessarily the same one, had been contributing to the items in question. More teachers, however, thought that at least two, instead of only one, gaming companies had shared in the contribution to six socially responsible activities. Over 10% of respondents perceived that all six companies created business opportunities for local enterprises and offered good remuneration, career development and training opportunities to local people. At the same time, the majority of the respondents from both cohorts perceived that no company participated in protecting the environment, beautifying the city, creating a harmonious environment, treating local staff fairly, and promoting responsible gambling. The 17 social responsibility items were factor analyzed. Five factors were extracted and labeled as Business and Employment; Community Development; Responsible Gambling; Management Practices; and Environmental Protection. Around 44% of the student and 32% of the teacher cohort had personal or familial employment relationships with the gaming operators. Independent t-test results showed that for all five factors, there were no significant differences, in either cohort, between the group that had employment relationship with the gaming operators and the rest that had not. Descriptive statistics indicated that the majority of both cohorts who was aware of the issues in discussion thought that no gaming operator had considered Macao's interests. Most respondents did not support any particular operator. Most students hoped that one gaming operator could invest more in Macao but most teachers did not wish for any further gaming investment. The majority of students, and more so for teachers, expressed they did not wish to work for any gaming company. Nonetheless, the majority of both cohorts admitted that all six gaming operators had brought benefits to Macao. The poisson regression model for students predicting perceived consideration of Macao's interests from the five social responsibility factors showed that three factors were significant in influencing such perception: Management Practices, Environment Protection and Responsible Gambling. For the teachers, there were two significant factors: Responsible Gambling and Environmental Protection. A second poisson regression indicated that students' perception of benefits

UNLV Gaming Research & Review Journal+ Volume 14 issue 1 11

1 1 14Jssue 14Jssue Volume Volume 12 12 Journal+ Journal+ Review Review Research Research & & Gaming Gaming UNLV UNLV

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the the while while factors factors responsibility responsibility social social five five all all by by influenced influenced was was Macao Macao to to brought brought Perception of Macao Teachers and Students Regarding Gaming Operators' Social Responsibility the stakeholders, ' carry out stakeholder dialogues (such as focus groups and surveys), develop social responsibility performance indicators, and produce audit reports verified by a legitimate third-party (Henriques 2001). The Macao community could consider forming a gaming impact audit group to study, monitor and feedback public opinions and comments to the industry and government. Gaming operators could be proactive too by developing a credible social audit system. This two-way interaction would satisfy the new social contract increasingly demanded by the community, maintain a heightened sense of alertness to potential conflicts and preserve a clear organizational conscience that employees can be proud of.

Limitation The study had sampled only high school graduating students and teachers. This limits the generalizability of the results. Future studies can consider adopting a random sampling approach to draw a more representative sample of the Macao population.

References Black, R., & Ramsay, H. (2003). The ethics of gambling: Guidelines for players and commercial providers. International Gambling Studies, 3(2), 199-215. Cochran, P. L. (2007). The evolution of corporate social responsibility. Business Horizons, 50, 449-454. Dodd, E. M., Jr. (1932). For whom are corporate managers trustees? Harvard Law Review, 45(7), 1145-1163. Harris, R. (2005). When giving means taking: Public relations, sponsorship, and morally marginal donors. Public Relations Review, 31, 486-491. Henriques, A. (2001). Civil society and social auditing. Business Ethics: A European Review, 10 ( 1), 40-44. Hing, N., & McMillen, J. (2002). A conceptual framework of the corporate management of social impacts: The case of problem gambling. Business and Society Review, 1 07( 4 ), 457-488. Johnson, H. H. (2001). Corporate social audits- this time around. Business Horizons, May-June, 29-36. Lee, S., & Park S. Y. (2009). Do socially responsible activities help hotels and casinos achieve their financial goals? International Journal of Hospitality Management, 28, 105-112. Macao Education Department. (2009). Statistics. Retrieved on February 19, 2009 from http://202.175.82.54/dsej/statiledu_num07_part1.pdf Macao Gaming Inspection and Control Bureau. (2009). Statistics. Retrieved on February 19, 2009 from http://www.dicj.gov.mo/EN/Estat/estat.htm#n1 Porter, M. E., & Kramer, M. R. (2002). The competitive advantage of corporate philanthropy. Harvard Business Review, 80( 12), 56-68. Residents protest against LV Sands for abandoning Macau. Macau Daily Times. 2009 Jan 20, p.6. Walle, A. H. (1995). Business ethics and tourism: From micro to macro perspectives. Tourism Management, 16 (4), 263-268.

Article submitted: 1122/10 Sent to peer review: 1122110 Reviewers' comments sent to author: 1129/10 Author's revised version received: 2/10/10 Article accepted for publication: 2110/10

UNLVGaming Research & Review Journal+ Volume 141ssue 1 13