Professional Documents
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Stakeholder theory suggests that corporate social responsibility (CSR) should require
organisations to consider the interests of all stakeholders including investors, sup-
pliers, consumers, employees, the community and the environment in discharging
their profit-directed activities. Implicit in this perspective is the assumption that both
sport and corporate influence on social trends must be considered from multiple
angles. Such a viewpoint encourages an examination of the overlaps between the
social responsibilities of the sport and corporate worlds. This paper explores the role
that sport can play as a vehicle for deploying CSR. It exposes the social responsibili-
ties implicit in sport as well as those found in the corporate world. An opportunity ● Sport
lies at the intersection of these mutual responsibilities in the combination of the ● Stakeholder
financial leverage available to corporations and the distributive/symbolic power theory
inherent in sport. We argue that sport offers a bridge across social and economic ● Health
gaps, an opportunity to improve the quality of life, and a stimulus to encourage large ● Physical activity
and profitable businesses to share a little of their prosperity. ● Culture
Aaron Smith, PhD, is Associate Professor with the School of Sport, Tourism
and Hospitality Management at La Trobe University, Melbourne, Australia. He u School of Sport, Tourism and
Hospitality Management, Faculty of
has published books on change management, policy, the future of business,
leadership, facility management and sport management. Aaron consults to the Law and Management, La Trobe
government, the private sector and sport organisations in Australia, Asia, University, Bundoora, 3086,
Europe and the Middle East. Melbourne, Australia
! aaron.smith@latrobe.edu.au
< <web address?>
T
he clichés are thick when it comes to sport’s influence in the world.
Nelson Mandela’s averment that sport can change the world holds much ideo-
logical sway, supported by reports from the United Nations Inter-agency Task
Force on Sport for Development and Peace, which articulated a strategy for sport’s
contribution to peace, political stability and health. Indeed, United Nations Sec-
retary-General Kofi Annan once commented that he was interested in the power of foot-
ball to teach lifelong lessons about playing against others as rivals, not enemies. The
sentiment has been echoed by FIFA (international football federation) President Joseph
S. Blatter, who claimed that the game had been developed and taken to the world and
now it is time to use football to make the world better. However, the process for achiev-
ing a social return from sport is unclear and lacks a coherent force for unification beyond
the intentions of a handful of powerful non-government organisations such as soccer’s
FIFA. The corporate trend toward social responsibility represents a significant opportu-
nity for capitalising on a marriage of the ubiquitous appeal of sport and the economic
might of the corporate sector. The deployment of corporate social responsibility through
sport offers substantial potential for community return. The mobilisation of sport as a
vehicle for contributing to corporate efforts toward social responsibility can be seen as
a distinct opportunity for both the organisations in charge of sport and those that seek
to use sport in their efforts to make contributions to communities (Smith and Wester-
beek 2004). Although sport may be utilised toward social goals by numerous parties,
this paper is concerned with the role of corporations in using sport as a means to fulfil
their social responsibilities. Our contention is that sport, more than any other potential
vehicle, contains qualities that make it a powerful force in effecting positive social con-
tributions. Furthermore, we outline the social responsibilities inherent to sport itself,
and that corporations need to connect with these inherent responsibilities in order to
successfully deploy sport in their CSR efforts.
From a stakeholder perspective, corporate social responsibility (CSR) requires organ-
isations to consider the interests of investors, suppliers, consumers, employees, the
community and the environment in discharging their profit-directed activities. Mars-
den and Andriof (1998) described CSR as the satisfaction of the expectations of all soci-
etal stakeholders to maximise the company’s positive impact on its social and physical
environment, while providing a competitive return to its financial stakeholders. Sport
offers such a stakeholder inclusive bridge across social and economic gaps (Davies 2002;
Smith and Westerbeek 2004).
This paper seeks to explore the role that sport can play as a vehicle for deploying CSR.
It attempts to achieve this goal by, first, considering the social responsibilities held by
the managers of sport in discharging their obligations to players, spectators, governing
bodies and other stakeholders; and, second, advancing the advantages of the use of sport
as a social tool for corporations. In exploring sport’s value and appeal as a vehicle for
CSR, it is hoped that its utility to the corporate sector might become more transparent.
Equally, the financial clout of the corporate sector offers considerable gravity to the
efforts of socially driven sport. The winner in this marriage, it may be hoped, is society.
The paper is structured into three further sections. The next section briefly reviews
the development of CSR, culminating in the exposition of stakeholder theory as a con-
ceptual platform. The subsequent section presents the social responsibilities inherent
to sport. These social responsibilities are largely discharged by the organisers of sport:
the sporting clubs, the governing bodies and the government departments in charge of
sport and recreation. The final section addresses the intersection of corporate and sport
social responsibility. Here it is discussed how corporations enter into partnerships with
sport organisations or individual athletes in order to strengthen the sport (organisation)
or athlete’s ability to deliver on social responsibilities. Corporations make this positive
contribution to communities by supporting the sport (organisations) with financial or
other resources. As will be explained in the next section, these types of relationships can
be differentiated from traditional conceptions of sport sponsorship. In that regard it is
important to understand that there are also a number of corporations that could be clas-
sified as ‘sport’ corporations such as the major apparel and footwear manufacturers and
marketers such as Nike and Adidas. However, in the context of this paper we do not con-
sider these companies to be sport organisations as they do not organise (participation
and spectator) sport but rather they provide products to supplement sport with the inten-
tion of furthering their private business objectives. These different entities and their
relation to CSR are pictured in Figure 1. It is shown that the corporation has a number
of indirect means of deploying CSR programs, but can also take full control and directly
discharge their social responsibilities by internalising these activities in their own struc-
ture. For example, many corporations have ‘corporate citizenship’ or ‘community
engagement’ departments that partner with organisations in sport, the arts, engage in
cause marketing or co-organise indigenous welfare programs but also manage a range
of CSR programs and activities that they set up independently. The figure also shows
that sport or ‘other means’ can be used when the unique social responsibilities of these
organisations offer a better means to achieve social objectives then the corporation act-
ing independently.
Other means
t The arts
t Good causes
t Indigenous culture
t Etc.
+
Unique set of social
responsibilities
A stakeholder approach
According to Schiebel and Pochtrager (2003), the stakeholder concept implies that man-
agement’s task is to pursue an ‘optimum’ balance between the range of needs demanded
by interest groups and constituents. They specified six key stakeholder groups: cus-
tomers, employees, business partners, communities, investors and the environment.
This is consistent with those posed by Clarkson (1995), Marsden and Andriof (1998)
and Kok et al. (2001). The stakeholder model therefore reflects an assumption that CSR
needs to represent the (potentially) competing demands of various groups that bolster
an organisation: its stakeholders (Clarkson 1995; Davenport 2000; Gregg 2001; Logs-
don et al. 1990). This model commends a system of consultation, communication and
evaluation whereby all stakeholders (not just shareholders) are considered to be valued
participants and contributors to the company’s existence and prosperity. Quazi (2003)
maintained that stakeholder theory is based on a social contract between business and
society. Stakeholder theory draws on research that has established a connection between
corporate social and financial performance (Margolis and Walsh 2001). A stakeholder
approach to CSR research demands that the fullest scope of an organisation’s activities
be uncovered and evaluated. Thus, if sport is deployed as a CSR vehicle, its impact on
all organisational stakeholders must be examined. A stakeholder approach also suggests
that consideration of sport as a vehicle for CSR requires some attention to be given to
the social responsibilities of sport itself.
5. Pathways for playing. Sports have a responsibility to provide pathways for develop-
ment and activity including junior and senior sport programmes as well as modi-
fied versions
6. Community relations policies. All sports are embedded in a community environ-
ment. The relationships sport bodies cultivate with local government and commu-
nity groups are pivotal to understanding local social needs
7. Health and activity foundation. Participation sport should acknowledge and
enhance opportunities for health and physical activity through policies directed
towards recognition of the importance of physical activity to the health of society at
large
8. Principles of environmental protection and sustainability. Sport is demanding on
the physical environment. Socially responsible sport acknowledges this burden and
develops policies to avoid environmental damage
9. Developmental focus of participants. A key ingredient of the social impact of sport
is the developmental opportunities it affords. Policies to formalise this commitment
to physical, social and personal development are relevant to social responsibility
10. Qualified and/or accredited coaching. Sports are obligated to provide qualified
coaches and leaders in order to ensure that the previous elements are implemented
There are two main advantages associated with the above list. First, it provides a check-
list for corporations wanting to engage sport in their CSR strategies, against which suit-
able sporting organisations might be compared. Corporate relationships with sport
organisations that do not have documented policies outlining these social obligations
should be avoided. Secondly, the awareness that sport has unique social responsibilities
adds to its power as a social influencer. As a result, corporate managers considering rela-
tionships with sporting programmes can select sports that better match their own social
engagement strategy. For example, companies seeking an involvement with a younger
audience should look carefully at the modified sport programmes (more suitable for
under-age participants) offered by their sport partners.
that, without the financial backing of corporate partners, the value of sport as a vehicle
for social responsibility is limited and the scope to improve this flow of resources to
sport is substantial. What are the features of corporate social responsibility that employs
sport as its principal vehicle?
2. Youth appeal
Second, SCSR appeals to youth. Sport has an inherent appeal to young people, from both
a participative and spectator viewpoint. In this sense, social responsibility can be exer-
cised with both ‘push’ and ‘pull’ support; participation-based programmes can encour-
age involvement, while high-profile sports-people can provide role models for
emulation. The latter has proven troublesome at times; as Gioia (2003) has warned,
there is a marked different between the discharge of power for personal gain versus dis-
charging it for social benefit. Stewart et al. (2004) suggested that socially responsible
sport programmes encourage the involvement of parents, peers, coaches and teachers,
focus on providing positive information rather than control over participants, involve a
minimum of rules and complex structures, promote social interaction amongst partic-
ipants, reinforce participant autonomy and should be undertaken in a pleasant envi-
ronment. In addition, children tend to report that youth sport is advantageous in that it
improves self-esteem, advances good citizenship, fosters the value of mastery and co-
operation, and encourages a physically active lifestyle (White et al. 1998). Many of these
features are core components of successful modified junior sport programmes.
National Public Health Partnership 2002<not in refs>; Headley 2004; Sport and Recre-
ation New Zealand 2002; WHO 2003).
4. Social interaction
Fourth, SCSR sport offers a platform for encouraging social interaction in a functional
way. Although perhaps overstated and with notable exceptions, sporting rivalry can be
a force for stability, democracy and peace. Case (2005) argued, for example, that places
for children to play in Afghanistan mean more than just slides and swings; they are in
fact a force and symbol for peace. This view has been propagated by the UN as well as
several of the largest international sporting bodies in the world, including the IOC and
FIFA. In addition, the economic and social benefits that accompany the hosting of hall-
mark sport events can cast a spotlight on the political activities of governments, such as
with the Beijing Olympics. Sport programmes designed for social return may also stim-
ulate social cohesion and fair play (Morris et al. 2004).
5. Sustainability awareness
Fifth, SCSR has been linked with an environmental and sustainability awareness (Smith
and Westerbeek 2004), particularly in the aftermath of winter (Salt Lake City) and sum-
mer (Sydney) Olympic Games that promoted a keen environmental responsibility. Pro-
grammes of SCSR have the opportunity to commit resources to, and stimulate a high
profile for, a zero net environmental impact.
There are numerous initiatives that involve partnerships between sporting organisa-
tions and companies which appeal to one or more of the points highlighted above. For
example, many programmes are designed to get participants more active. Mostly, how-
ever, these programmes are sponsored in the conventional way by companies keen to
take advantage of a national audience of children and their parents. Nevertheless, a hand-
ful of programmes such as the cluster in Australia supported by Nestlé including its
‘Health and Activity Resource’, ‘A Winning Diet’, ‘Be Healthy Be Active’, ‘Fit Kids For
Sick Kids’, ‘The Nestlé Good Life Program’, ‘Get the AIS into your Classroom’ and a ‘Per-
sonal Development Health and Physical Education Program’ designed for teachers of
upper primary and secondary school children, exemplify the CSR approach we have advo-
cated. Other examples include Sainsbury’s Active Kids programme for 20,000 school
children in the UK, DaimlerChrysler’s Laureus Sports for Good Foundation, and BP’s
Football for Peace programme in Central America. However, it is not the purview of this
Concluding comments
We have argued that a stakeholder perspective is advantageous in considering the poten-
tial marriage of corporate and sport its social responsibility. In particular, it reinforces
the reach and diversity of impact that each hold in society. Although corporate social
responsibility has been thoroughly articulated, the social responsibilities implicit to
sport remain underdeveloped. This paper has attempted to make these responsibilities
more transparent as a first step toward considering the overlap with corporate social
responsibilities. Sport possesses the power to captivate and unite individuals within
communities and create environments for contributing to social capital. Equally, the cor-
porate world can mobilise much-needed resources to be deployed through sport to meet
its social responsibilities. When the two come together in the form of sport corporate
social responsibility, it can be pervasive, youth-friendly, health-oriented, socially inter-
active, environmentally aware, culturally liberating and fun. Corporate managers and
sport managers alike can enhance the economic prospects of their organisations and
maximise the social benefits that they deliver to society by better harnessing the power
of sport to deliver on social and community objectives.
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