SPM Ch 12

What are the most common fund raising events in the big leagues?

-golf tournaments - theme nights -auctions -special luncheons

Ad hoc CSR

-when the sport organization is not particularly guided by either its evaluation of external pressures or the potential of its internal resources -likely to be random in nature rather than reflect some systematic approach

what are the characteristics of effective programs?

-focused: on particular social problems -impactful: designed to achieve particular outcomes -leveraged: effectiveness can be enhanced by partnering with other organizations or working in collaboration -evaluated: outcomes are monitored with goal of improving effectiveness -sustained: long-term programs are likely to be more effective

What are examples of cash donations?

-grants in support of organizations that promote positive self-image and life skills for young women in Indiana -Portion of game ticket revenue and fund-raising proceeds donated to Kay Yow/WBCA Cancer fund

What does CSR involve?

-managerial decision making -communication based function

What are five recommendations for strategic philanthropy?

-embrace the role of community leader -address community health needs -support programs to raise high school graduation rates -help assimilation process -use relevant themes in advertising

social responsibility /corporate social responsibility (CSR)

-no commonly accepted definition -the responsibility of organizations to be ethical and accountable to the needs of their society as well as their stakeholders -when organizations are not exclusively focused on their own financial interests -not just giving money

What are the fice practices related to CSR?

-donating funds to nonprofit organizations and charities -supporting social causes -conserving resources, materials, and minimizing waste -complying with Equal Employment Opportunity Commission policies

what does strategic philanthropy stress?

"while businesses should be good corporate citizens, they must not forget their fundamental obligation to their shareholders and employees, and to the company's profit-and-loss statement

What are some problems that have been found with athlete and coach foundations (study of 89 NBA players charities in 2008)?

- 25% did not have most basic documentation required by IRS -players commonly put family members on the board despite IRS rules requiring that majority of board members be non-relatives - of the $31 million generated over 3 years only 44% of the money reached good causes -extravagant fund raising events commonly operated at a new loss

Primary benefits of CSR:

- Enhance image: looks good to be seen doing good -grow the game: build interest and participation in products and services they offer -improve bottom line: customers tend to favor business they view as being socially responsible and organization can employ strategies that blend good works with generating revenue

why do charities often seek the support of sport entities?

- the sport organization and reps can serve as highly visible supporters -involvement of prominent sport figures can generate additional awareness for a good cause

CSR sport relationship

-"CSR may be good for sport and sport organizations and sport may be good for CSR -participation in CSR and related activities broadens the base and hence the social legitimacy of the whole CSR notion, that private sector organizations have at least real interests, if not real obligations, in creating and sustaining a high quality of life."

philanthropy

-"an act of trust on the part of the donor towards the organization that will receive and use the donation" -the donor is placing faith in the recipient to use the gift responsibly and serve the community by its actions

What are some organizations that are supporting athletes and others in managing the challenges in finding and supporting good causes?

-Athletes for Hope: purpose is to educate athletes about charitable initiatives, assist them in connecting with others with similar interests and goals -Giving Back Fund: provides consulting and managing services. Providing and maintaining donor advised funds and other financial tools for philanthropic activities -Sports Philanthropy Project: works to maximize the impact that professional sports leagues, teams and athletes can have in impacting social need in our society. Provides technical assistance

What are some other environmentally friendly initiatives?

-The Green section: promoted methods that allow golf courses to contribute to environment - using recycled flooring -high efficiency lights -using toilets and showers that conserve water -having cleaning crews work in the day instead of night so facility can close overnight -green cleaning supplies

What are the four approaches to managing CSR?

-ad hoc CSR -corporate-centric CSR -stakeholder-centric CSR -strategic CSR

How do sport organizations try to reduce their environmental consequences?

-adopting recycling programs (most common) -offsetting carbon emissions

What are the outcomes that community relations professionals hope to achieve besides raising money?

-assist individuals and organizations -fun event for fans -do something that provides personal satisfaction for members of the organization

why is CSR more important for sport organizations than it is for other entities?

-because of the combination of visibility, strong community connections and high expectations among the public

How is CSR different in sport than most other industries?

-because people perceive that they benefit the expectations that they give back are higher than other businesses - many of the people involved in CSR activities, particularly athletes, have "star power" -the actions of many sport organizations are reported and known in the community -many perceive sport organizations as being the beneficiaries of public subsidies (tax money for new stadium/arena) and special protections (antitrust exemptions)

What are examples of product-in-kind donations?

-community ticket donation program to benefit underprivileged children and their families -autographed memorabilia donations to nonprofits that serve girls and women, promote youth education or health and fitness

Challenges to recycling programs?

-convincing senior managers of the environmental and economic benefits -addressing economic limitations that may impede recycling programs from reaching their potential (ex. labor cost of having cleaning crews manually sort trash to separate recycling) -getting fans activated to participate

What are the three CSR practices that relate the most to sport public relations professionals?

-donating funds to charities -supporting good causes -being environmentally responsible

Three themes that characterize the way CSR is perceived?

-organizations that receive positive associations from their strategic philanthropy when key publics know about it -when attempting to embrace CSR, organizational managers make decisions that they deem to be in alignment with the expectations of their stakeholders -social problems such as poverty or the environment

What are some other charitable activities sport figures and organizations may do?

-personal appearances build a program that advocates desirable goals (ex. decreasing dropout rates or increasing literacy rates) -spearhead a program to get donations from the public in support of charities

Who benefits from cause-related marketing?

-publics such as the non-profits who receive support -people served by the non-profits -consumers who gain increased satisfaction from their purchases -employees who enjoy increased morale -investors who reap benefits from organization's increased effectiveness

What are some ways in which sport organizations are trying to achieve carbon neutrality/reduce greenhouse gas emissions?

-reduce consumption of power sources generated by fossil fuel -finding more efficient ways to heat and cool facilities (less electricity) -using solar or wind energy

What are sports commonly a burden on the environment?

-require significant amounts of electricity for lighting, heating and cooling -produce large amounts of trash -fans and competitors travel to event by plane, car or bus (all which need fuel and release pollutants)

Top three reasons why organizations initiate green programs:

-seen as having a direct, positive effect on the environment -good financial decision for the company -customers or employees have asked for it

What is recommendation to athletes when considering starting a foundation?

-should establish a foundation in instances when the cause they want to support is not being served by other non profits - if others exist they should instead use their celebrity as a resource and collaborate with the existing nonprofits

What are the variety of settings that charitable support can occur in sport?

-sporting good manufacturers/retailers can give donations -college athletes, national organizations, conferences, member institutions, programs and booster clubs can contribute to causes -professional level:individual player or coach, the team and league each can donate

Who are three other key sets of representatives that sport entertainment organizations often use?

-spouses -alumni -spirit squads

What are some other ways to support good causes?

-supplying volunteers to worthy organizations -sharing facilities with the community -offering sport outreach programs

Two ways in which sport organizations can support environmental responsibility:

-taking measures to reduce the negative impact of the organization on the environment -promoting their efforts to be environmentally responsible and encouraging others to do the same

What is the key difference between a private foundation and a public charity?

-the primary activity of a foundation is to make grants to other charitable organizations -public charities operate their own charitable programs

What are the two advantages of in-kind donations?

-they are often valuable assets that can auctioned or raffled off for significant amounts of money by the charity -the true cost of in-kind gifts is relatively low for the sport organization

Well run foundations typically operate at what ratio of money going to charity vs over head expenses?

4:1 or 5:1. Some of the best are 9:1

Which CSR approach is considered optimal?

Strategic CSR

Strategic partnerships

a method for generating revenue through CSR. Partnerships with local businesses or charitable organizations that facilitate organizational goal achievement for all three parties. Ex. NFL and Kellogs and youth fitness. Kellog signs on as a sponsor of the NFL Play 60 program (encourages kids to play actively for 1 hour everyday). Society benefits, Kellog achieves a CSR goal and positive brand association and the NFL takes on a lead role in an important social outreach program

foundations

a nonprofit organization which is usually created via a single primary donation from an individual or a business and whose funds and programs are managed by its own trustees or directors.

cause-related marketing

a sport organization can distinguish itself in the competitive marketplace and add value to its products and services based on its association with a charitable organization

What are in-kind donations?

donations of products to charitable causes

Why do some argue that corporate philanthropy is not a good thing?

because money devoted to charitable causes comes off the bottom line, diminishing the profits paid to stockholders who should have control over where those monies are spent after receiving their dividends

Why are philanthropic initiatives a good thing?

because they facilitate healthy communities that, in turn, nurture sport organizations

What is the common recommendation for amount a foundation have in assets to start?

in anticipation of at least $100,000 in operating expenses foundations should have about $500,000 minimum in assets to start

What is a 501(c)(3) organization?

not-for-profit organizations that may be supported through tax-deductible contributions

What do some organizations do to offset carbon emissions since they do not rely exclusively on clean energy sources?

plant trees

super community

sport organization formalizes relationship with charitable group seeking assistance and together they can be marketed to the sport organization's corporate partners providing sponsors a platform to advance their own CSR

carbon neutrality

the action of organizations, businesses and individuals taking action to remove as much carbon dioxide from the atmosphere as each put in to it. The overall goal of carbon neutrality is to achieve a zero carbon footprint.

Why is volunteerism in some ways the most powerful form of support that sport entities can provide?

the personal engagement necessitated by volunteerism communicates a deeper commitment to social responsibility that in-kind or cash contributions

strategic philanthropy

the practice of companies by which they target their respective charitable and philanthropic activities around a specific issue or cause that will in turn support their own business objectives

what is the key in promoting environmental initiatives?

to achieve an appropriate balance between important environmental initiatives and credible promotional communication. Want people to believe you are doing it because you care not as a gimmick

What do charitable initiatives allow sport organizations to do?

to connect with a wider variety of people in terms of age, race and socioeconomic background

Stakeholder-centric CSR

when an organization places more emphasis on its external orientation than on its internal resources (ex. Read to Achieve is great because it supports literacy and reading but the educational nature of the program does not naturally align with the resources of the league's member franchises)

Strategic CSR

when sport organizations merge high sensitivity to external pressures with a strong evaluation of their internal resources (ex. NBA Fit Kids, Healthy Future- activates resources that the league's franchises already have like athletes and mascots, and a community issue which is children who need to get fit

what are matching programs?

when the organization matches a gift that an employee makes

Corporate-centric CSR

when the organization's assessment of its internal resources outweighs its evaluation of external pressures in the planning process (when the initiatives are not particularly geared toward addressing some societal problem or issue)

What is holistic business mind set?

when the socially responsible obligations of the firm could and should incorporate both social and economic interests