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Corporate Social Responsibility and Sports Sponsorship

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Corporate Social Responsibility and Sports Sponsorship Corporate Social Responsibility And Sports Sponsorship Steve Hemsley A Management Report published and distributed by International Marketing Reports Ltd Suite 7 33 Chapel Street Buckfastleigh TQ11 0AB United Kingdom Tel: +44 (0) 1364 642224 [email protected] www.imrsponsorship.com Cover Design by Karen Painter Copyright ©2009 by International Marketing Reports Ltd All rights reserved. No part of this publication may be reproduced, stored in a retrieval system or transmitted in any form or by any means, electronic, photocopying or otherwise, without the prior permission of the publisher and copyright owner. While every effort has been made to ensure accuracy of the information, advice and comment in this publication, the publisher cannot accept responsibility for any errors. The views expressed in this report are not necessarily those of the publisher. 2 THE AUTHOR Steve Hemsley has worked as a marketing journalist for more than 15 years. He has written extensively for Marketing Week, The Financial Times and The Guardian among many other publications on marketing and sponsorship issues. He is also a former sports editor at Kent Messenger Group Newspapers. ACKNOWLEDGEMENTS The publishers would like to thank the following companies, organisations and individuals for their assistance in producing this report. Business Respect, Sustainable Marketing, RTM Sports Marketing, Nottingham Trent University, Boston College for Corporate Citizenship, The European Sponsorship Association, St James Ethics Centre (Sydney), Sponsorship Consulting Ltd, Business In The Community, Ardi Kolah, Department of Culture Media and Sport, Four Sports Arts & Sponsorship, Brand Reputation, The Sports Marketing Network, The Ethical Corporation Institute. In particular, we would like to thank John Luff and Mallen Baker for their guidance and for submitting introductions to the report. 3 TABLE OF CONTENTS EXECUTIVE SUMMARY:...................................................................... 8 CSR In Business ................................................................................... 8 CSR And Sport ...................................................................................... 8 Cynicism Towards CSR ........................................................................ 9 INTRODUCTION ONE WHY CSR SHOULD NOT BE A DISTRACTION IF YOU ARE SERIOUS ABOUT MARKETING ........................................................ 11 INTRODUCTION TWO THE CHANGING FACE OF CORPORATE SOCIAL RESPONSIBILITY AND SPORTS MARKETING ............................................................... 16 SECTION ONE WHY SPONSORS NEED A CSR STRATEGY LINKED TO SPORT .. 19 CSR’s Impact On Brand Awareness And Sales .................................. 21 The Influence Of Business And Sport In The Local Community .......... 23 The Olympic Games ........................................................................... 26 Case Study: Corus And British Triathlon Federation ........................... 28 Background .............................................................................. 28 Objectives ................................................................................. 28 Implementation ......................................................................... 28 Employee Engagement And Participation ..................... 29 Added Value .................................................................. 29 Results ..................................................................................... 29 On-going Activity And Longevity ............................................... 30 Case Study: McCain And UK Athletics ................................................ 30 Background .............................................................................. 30 Objectives ................................................................................. 30 Implementation ......................................................................... 30 Employee Engagement And Participation ..................... 30 Fundraising .................................................................... 31 Other Added Value Benefits .......................................... 31 Results ..................................................................................... 31 4 SECTION TWO HOW CSR SPORTS PROGRAMMES ADD VALUE TO SPONSORS AND RIGHTS HOLDERS .................................................................... 32 Sport Is Making A Difference ............................................................... 32 Employee Engagement ....................................................................... 34 Evaluation And Measurement ............................................................. 37 Case Study: Nike And GameChangers .............................................. 39 Background .............................................................................. 39 Objectives ................................................................................. 39 Implementation ......................................................................... 40 Employee Engagement And Participation ..................... 40 Results ..................................................................................... 40 On-Going Activity And Longevity .............................................. 40 Case Study: Standard Chartered Bank - Race For The Living Planet . 40 Background .............................................................................. 40 Objectives ................................................................................. 41 Implementation ......................................................................... 41 Employee Engagement And Participation ..................... 41 Results ..................................................................................... 41 On-Going Activity And Longevity .............................................. 41 SECTION THREE THE ROLE OF THE RIGHTS HOLDER IN CSR ................................. 42 Rights Owners And Existing Community CSR Programmes ............... 42 Sports Must Reassure Sponsors That They Are Socially Responsible .............................................................................. 47 Tour de France Doping Scandals ........................................................ 48 Issues Affecting The NFL .................................................................... 49 Gambling Sponsorship, Sport And CSR ............................................. 50 How Gambling Brands, CSR And Sport Answer The Critics ............... 53 Case Study - Betfair And Sportsaid .......................................... 53 Background .............................................................................. 53 Objectives ................................................................................. 53 Implementation .............................................................. 53 Fundraising .................................................................... 54 Visuals ........................................................................... 54 Leverage ........................................................................ 54 Results ..................................................................................... 55 On-Going Activity And Longevity .............................................. 55 Public Sector Funding To Boost CSR Activities .................................. 55 Rights Holder Sponsorship Initiatives .................................................. 56 Case study: Women’s British Open, Ricoh And Seeds for Africa ........ 57 Background .............................................................................. 57 Ricoh ............................................................................. 57 Seeds For Africa ............................................................ 58 Objectives ................................................................................. 58 Implementation ......................................................................... 58 Employee Engagement And Participation ................................ 59 Results ..................................................................................... 59 On-Going Activity And Longevity .............................................. 59 5 SECTION FOUR LINKING CSR TO SPORT AND AVOIDING PITFALLS ..................... 60 Selecting The Right Sport ................................................................... 61 Stakeholder Cynicism ......................................................................... 63 The Importance Of Being Socially Responsible .................................. 65 Case Study: Aviva UK Athletics Sponsorship...................................... 70 Background .............................................................................. 70 Objectives ................................................................................. 70 Implementation ......................................................................... 70 National School Sport Week .......................................... 70 Community Sports Fund ................................................ 71 UK Athletics Grassroots Schemes ................................. 71 School Sport Matters ..................................................... 71 Results ..................................................................................... 72 On-Going Activity And Longevity .............................................. 72 6 TABLE OF CHARTS, FIGURES AND TABLES Figure 0.1. CSR Return On Investment
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