Chapter Demonstrating Social Responsibility C H A P T E R

Objectives Discuss the nature of corporate social responsibility Describe the various dimensions of corporate social responsibility Describe the nature of charitable programs common in sport (continued)

Objectives (continued) Discuss how sport organizations are advocating environmental responsibility Characterize the different approaches to corporate social responsibility programs Identify the benefits of demonstrating corporate social responsibility

Corporate Social Responsibility (CSR) CSR can be broadly understood as the responsibility of organizations to be ethical and accountable to the needs of their society as well as their stakeholders.

Uniqueness of CSR in Sport Many sport figures possess star power. Powerful connections exist between many sport organizations and their communities. Sport organizations are sometimes perceived to be beneficiaries of public subsidies.

CSR in Sport Donating funds to charities Supporting social causes Conserving resources and minimizing waste Treating all employees fairly Complying with EEOC policies

Donating to Charities Philanthropy is an act of trust on the part of the donor towards the organization that will receive and use the donation Corporate philanthropy is the subject of disagreement Two kinds of support –In-kind donations –Cash donations

Foundations Some sport organizations establish their own charitable organizations that in turn donate to other good causes. IRS classifies foundations as not-for-profits that may be supported by tax deductible donations. Some sport foundations fall short of industry standards.

Fund-Raising Activities A key source of revenue for foundations Many both raise money and generate other public relations benefits Others are fraught with problems –Costs of celebrity participants –Ego issues –Lack of concern with charitable cause

Advancing Philanthropy in Sport Athletes for Hope The Giving Back Fund Sport Philanthropy Project

Other Ways to Support Good Causes Volunteerism: involvement of spouses, alumni, spirit squads Use of facilities Sport outreach programs

Environmental Responsibility “The defining challenge of the 21st century will be to face the reality of energy conservation and protection of the environment” (Giannoulakis, 2008, p. 34). (continued)

Environmental Responsibility (continued) Reasons to go green –Positive effect on environment –Good financial decision –Customers or employees asked for it

Reducing Environmental Impact Recycling programs Carbon reductions Other initiatives –Golf course management –Facility materials –LEED certification

Promoting Responsibility Organizational communication (e.g., website) Mass media coverage Hazard of “greenwashing”

Planning CSR Programs Four approaches –Ad hoc CSR –Corporate-centric CSR –Stakeholder-centric CSR –Strategic CSR

Effective Programs FILES guide –Focused –Impactful –Leveraged –Evaluated –Sustained

Benefits of CSR Enhance image –Positive effect on team reputation –May be particularly important for organizations that enjoy less competitive success Grow the game –Youth outreach programs –Global expansion (continued)

Benefits of CSR (continued) Improve the bottom line –Customers tend to favor socially responsible organizations –Direct linkages Cause-related marketing Strategic partnerships (e.g., “super community”) (continued)

Benefits of CSR (continued) Enhance the community and world –NFL and United Way –Right to Play

A Final Word The sport industry may serve as a high- profile role model in regard to the nature and importance of CSR.