Sports Philanthropy Workshop

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• Sports Philanthropy Workshop
• (Presented by SPP and NASSM)
• Wednesday, May 28, 2008
• Toronto, Ontario

Emerging Trends in Sports Philanthropy
Research Kathy Babiak, University of
Michigan Aubrey Kent, Florida State University
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• Sports Philanthropy Workshop
• (Presented by SPP and NASSM)
• Wednesday, May 28, 2008
• Toronto, Ontario

• Session Overview
• Value of research
• Growing academic interest in this area
• Our work in the sport industry
• Future opportunities

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• Sports Philanthropy Workshop
• (Presented by SPP and NASSM)
• Wednesday, May 28, 2008
• Toronto, Ontario

• Value of Research
• Scholar perspective
• Practitioner perspective
• Creating a WIN-WIN

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• Sports Philanthropy Workshop
• (Presented by SPP and NASSM)
• Wednesday, May 28, 2008
• Toronto, Ontario

• Academic work
• CSR
• Philanthropy

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i. CSR Defined
Sports Philanthropy Workshop (Presented by SPP
and NASSM) Wednesday, May 28, 2008 Toronto,
Ontario

• CSR represents a set of actions that
• appear to further some social good,
• extend beyond the explicit pecuniary interests
  of the firm,
• and are not required by law
• (McWilliams Siegel, 2000)
• refers to company activities voluntary by
  definition demonstrating the inclusion of
  social and environmental concerns in business
  operations and in interactions with stakeholders
• (Van Marrewijk, 2003)

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i. The CSR literature
Sports Philanthropy Workshop (Presented by SPP
and NASSM) Wednesday, May 28, 2008 Toronto,
Ontario

• Friedman (1962) an organizations
  responsibility is to its shareholders--to make
  money (through products and/or services).
• Stakeholder perspective not just responsible to
  shareholders but to stakeholders that can affect
  / be affected by an organization (Donaldson
  Preston, 1995 Freeman, 1984)
• CSR as strategic response / good business
  practice (Hess Warren, 2005 Porter Kramer,
  2006) or as insurance for future misdeeds
  (Gardberg Fombrun, 2006 Godfrey, 2005)
• Cause-Marketing / Cause Branding (Gupta Pirsh,
  2006 Irwin, Lachowetz, Cornwell, 2003 McGlone
  Martin, 2006 Roy Graeff, 2003)

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ii. Strategic Philanthropy Defined
Sports Philanthropy Workshop (Presented by SPP
and NASSM) Wednesday, May 28, 2008 Toronto,
Ontario

• Synergistic use of organizational resources and
  core competencies to address key stakeholders
  interests and to achieve both organizational and
  social benefits.
• (McAllister Ferrell, 2002)

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• Sports Philanthropy Workshop
• (Presented by SPP and NASSM)
• Wednesday, May 28, 2008
• Toronto, Ontario

• Philanthropy
• Corporate philanthropy encompasses activities
  ranging from public relations, advertising,
  promoting a companys image or brand through
  cause-marketing, or other high profile
  sponsorship (Porter Kramer, 2002, p. 92).
• Strategic Philanthropy Has been conceptualized
  as being at the opposite end of the corporate
  philanthropy continuum from altruism which is
  giving without concern for reward (Burlingame
  Frishkoff, 1996).
• Ricks (2005) typology of philanthropy

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ii. Philanthropy Literature
Sports Philanthropy Workshop (Presented by SPP
and NASSM) Wednesday, May 28, 2008 Toronto,
Ontario

• Strategic Philanthropy (Bruch Walter, 2005)
• Corporate philanthropy goes beyond donations
  Should use charitable activities to create a
  win-win situation for company and beneficiaries
  of philanthropy
• Werbel Wartman (2000) found that companies
  philanthropic donations tend to increase
  following negative media exposure. Suggests that
  companies may use corporate philanthropy as a
  strategic tool to remedy negative portrayals of
  their social responsibility in the media.

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Strategic CSR / PhilanthropyA Conceptual Model
Peripheral CSR
Strategic CSR
Low High
AdHoc CSR
Narrow CSR
Stakeholder / Market Orientation
Low High
Resource / Competence Orientation
(Adapted from Bruch Walter, 2005)
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Convergence of InterestsPorter Kramer (2002)
Pure Philanthropy
Social Benefit
Combined Social Economic Benefit
Pure Business
Economic Benefit
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Porter and Kramer (2006)
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• Sports Philanthropy Workshop
• (Presented by SPP and NASSM)
• Wednesday, May 28, 2008
• Toronto, Ontario

• Our Work - Aubrey
• Focused on Strategic Philanthropy and
  communication
• Outcomes
• Reputation, Patronage, Sacrifice
• Atlanta Falcons, PGA Tour, NASCAR, NHL

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• Sports Philanthropy Workshop
• (Presented by SPP and NASSM)
• Wednesday, May 28, 2008
• Toronto, Ontario

• iii. Our Work - Kathy
• Forces influencing / defining sport CSR /
  philanthropy
• Teams
• Professional Athletes
• Impact and perceptions of CSR programs on
  participants Minnesota Twins RBI program

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• Sports Philanthropy Workshop
• (Presented by SPP and NASSM)
• Wednesday, May 28, 2008
• Toronto, Ontario

• SPORT is an excellent research context since
• CSR is very prevalent in sport
• All professional sport teams / leagues have
  community outreach programs / foundations.
• Smith Westerbeek (2007)
• Studying organizational phenomena within sport
  provides rare research advantages due to
  availability of performance data, clarity of
  outcomes, transparency of intended and unintended
  behaviors

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• Sports Philanthropy Workshop
• (Presented by SPP and NASSM)
• Wednesday, May 28, 2008
• Toronto, Ontario

• Margolis and Walsh (2003) called for a change in
  empirical research away from justifying CSR to
  examination of the impacts of CSR on recipients
  and society at large (e.g., reductions in
  poverty, increases in health). Research heeding
  that call has yet to reach the publication stage.
  
• Research complex problems that span disciplinary
  boundaries (e.g., public policy, management,
  public health, education, economics, corporate
  governance, social work)
• Engaged scholarship produce actionable
  knowledge

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• Sports Philanthropy Workshop
• (Presented by SPP and NASSM)
• Wednesday, May 28, 2008
• Toronto, Ontario

• Future Opportunities
• Issues ahead that we see
• Issues that you see?
• Discussion

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• Sports Philanthropy Workshop
• (Presented by SPP and NASSM)
• Wednesday, May 28, 2008
• Toronto, Ontario

• As recommended by SPP
• Efforts at community relations, fan development,
  and business development may be related to but
  do not substitute for quality sports philanthropy
• Measurement is not very useful when made
  in reductionist terms exclusively involving 990
  filings, administrative overhead/revenue ratios,
  grant size, etc.
• Truly successful sports philanthropy can best be
  understood in terms of evaluating impact, which
  requires understanding in-kind value, the focus
  of the effort, and the quality of the outcome of
  the effort

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• Sports Philanthropy Workshop
• (Presented by SPP and NASSM)
• Wednesday, May 28, 2008
• Toronto, Ontario

• SAMPLE RESEARCH QUESTIONS?
• Examining outcome variables i.e., to what extent
  do particular programs address the social issues
  e.g., how much has the reading of students
  attending NBA Read-To-Achieve sessions improved?
• Other outcome variables may include to what
  extent have such programs had corporate
  reputational benefits?
• How do these programs affect team (fan) loyalty
  and other rewards an organization may expect to
  receive from socially responsible efforts?
• And on a broader scale, how much does a community
  benefit from a professional sport teams CSR
  related efforts?

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• Sports Philanthropy Workshop
• (Presented by SPP and NASSM)
• Wednesday, May 28, 2008
• Toronto, Ontario

• SAMPLE RESEARCH QUESTIONS?
• How can / do managers substitute involvement in
  some CSR activities for lack of involvement in
  others?
• How are sporting organizations (players and
  coaches, teams and unions, and sport governing
  bodies) responding to (both reactively and
  proactively) ethical blowback? (e.g., performance
  enhancing drug scandal)
• In terms of the natural environment, what
  effective measures can sports organizations take
  to reduce levels of pollution, congestion, and
  garbage around their venues?
• Partnerships to maximize social benefits how
  are they formed? And how are socially responsible
  initiatives enacted?
• How will the expanding global nature of sport
  influence CSR initiatives?