CORPORATE SOCIAL RESPONSIBILITY AND SPORT. Yuhei Inoue, Ph.D. The University of Memphis 2013 Tsukuba Summer Institute

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1 CORPORATE SOCIAL RESPONSIBILITY AND SPORT Yuhei Inoue, Ph.D. The University of Memphis 2013 Tsukuba Summer Institute

2 7/18/ Tsukuba Summer Institute 2 Agenda 1. Background 2. Overview of CSR 3. CSR in sport 4. CSR through sport 5. CSR research in sport management 6. Announcement

3 7/18/ Tsukuba Summer Institute 3 Agenda 1. Background 2. Overview of CSR 3. CSR in sport 4. CSR through sport 5. CSR research in sport management 6. Announcement

4 7/18/ Tsukuba Summer Institute 4 Background Current Position: Assistant Professor of Sport Management at the University of Memphis Academic Background: B.A. in Sociology from the University of Tsukuba M.A. in Sport Management from The Ohio State University Ph.D. in Business Administration from Temple University

5 7/18/ Tsukuba Summer Institute 5 Agenda 1. Background 2. Overview of CSR 3. CSR in sport 4. CSR through sport 5. CSR research in sport management 6. Announcement

6 7/18/ Tsukuba Summer Institute 6 What is the Responsibility of Business? Classical Economic View The sole responsibility of business is to make as much money as possible while complying with the law Social Responsibility View Business has responsibility beyond making a profit and obeying the law

7 7/18/ Tsukuba Summer Institute 7 Classical Economic View Milton Friedman Nobel Prize in Economics in 1976 There is one and only one social responsibility of business to use its resources and engage in activities designed to increase its profits so long as it stays within the rules of the game.

8 7/18/ Tsukuba Summer Institute 8 Classical Economic View

9 7/18/ Tsukuba Summer Institute 9 Social Responsibility View Phil Knight Nike Chairman The performance of Nike and every other global company in the twentyfirst century will be measured as much by our impact on quality of life as it is by revenue growth and profit margins.

10 7/18/ Tsukuba Summer Institute 10 Social Responsibility View Government Natural Environment Auditors Religious Institutions Community Future Generations Competitors Distributors Media Labor Unions Legal Community Minorities

11 7/18/ Tsukuba Summer Institute 11 Corporate Social Responsibility (CSR) Definition: The simultaneous fulfillment of the firm s economic, legal, ethical, and philanthropic responsibilities (Carroll, 1991) COMPANIES MUST GO BEYOND JUST MAKING PROFITS AND OBEYING THE LAWS!!!

12 7/18/ Tsukuba Summer Institute 12 Four Responsibilities of Businesses Philanthropic Responsibility Ethical Responsibility Legal Responsibility Economic Responsibility Carroll (1991)

13 7/18/ Tsukuba Summer Institute 13 Type of Responsibility Societal Expectation Examples Philanthropic Ethical DESIRED of business by society EXPECTED of business by society Offer corporate contributions. Initiate community programs. Meet societal expectations and ethical norms. Legal REQUIRED of business by society Obey all laws and regulations. Economic REQUIRED of business by society Be profitable. Maximize sales revenue.

14 7/18/ Tsukuba Summer Institute 14 The Revised CSR Model Our focus!! Voluntary Responsibilities (Ethical and Philanthropic) Fundamental Responsibilities (Legal and Economic)

15 7/18/ Tsukuba Summer Institute 15 Agenda 1. Background 2. Overview of CSR 3. CSR in sport 4. CSR through sport 5. CSR research in sport management 6. Announcement

16 7/18/ Tsukuba Summer Institute 16 CSR in Sport

17 7/18/ Tsukuba Summer Institute 17 Community Involvement Environment Philanthropy CSR in Sport Volunteerism Youth Education Youth Health Walker & Parent (2010)

18 7/18/ Tsukuba Summer Institute 18 CSR Actors in Sport Athletes Teams Leagues Events

19 7/18/ Tsukuba Summer Institute 19 Top Ten Athlete Charities by Revenue Foundation Name Revenue Lance Armstrong Foundation $52,375,978 Tiger Woods Foundation $10,776,784 Andre Agassi Charitable Foundation $8,022,237 Dikembe Mutombo Foundation Inc. $5,145,159 Cal Ripken, Sr. Foundation $4,335,452 Jackie Robinson Foundation Inc. $4,254,489 Dan Marino Foundation Inc. $2,672,561 Magic Johnson Foundation $2,579,674 Derek Jeter Turn 2 Foundation $1,888,105 The Moyer Foundation $1,775,113 Source: The Sports Philanthropy Project (2010)

20 7/18/ Tsukuba Summer Institute 20 Team Charitable Foundations 35 Professional Sport Team Foundations Number of Foundations NFL Foundations (84%) MLB Foundations (100%) NHL Foundations (93%) NBA Foundations (77%) Date of Establishment Source: Babiak & Wolfe (2009)

21 7/18/ Tsukuba Summer Institute 21 Average Charitable Contribution of Each Team Foundation by League ( )

22 7/18/ Tsukuba Summer Institute 22 Agenda 1. Background 2. Overview of CSR 3. CSR of sport 4. CSR through sport 5. CSR research in sport management 6. Announcement

23 7/18/ Tsukuba Summer Institute 23

24 7/18/ Tsukuba Summer Institute 24 CSR through Sport Partnership between sport organizations and non-profits NFL and United Way Partnership Use of sport by international organizations United Nations Sport and Environment Non-profits using sport for improving society Right to Play

25 7/18/ Tsukuba Summer Institute 25 Philanthropic Power of Sport As a professional athlete, you are in a position and given the opportunity to really have an impact on more than just your immediate surroundings. (Steve Nash, LA Lakers) Professional sports, as a corporate partner, could be a force for social change like no other. (An Executive of the Robert Wood Johnson Foundation) Sport contains qualities that make it a powerful force in effecting positive social contributions. (Smith & Westerbeek, 2007, p.25)

26 7/18/ Tsukuba Summer Institute 26 Communication Power Commitment Youth Appeal Passion Power of Sport Social Interaction

27 7/18/ Tsukuba Summer Institute 27 Agenda 1. Background 2. Overview of CSR 3. CSR of sport 4. CSR through sport 5. CSR research in sport management 6. Announcement

28 7/18/ Tsukuba Summer Institute 28 Research Questions on CSR in Sport What types of CSR activities do sport organizations implement? e.g., Babiak and Wolfe (2006) Why do they engage in CSR? e.g., Babiak and Wolfe (2009) Does CSR create business benefits for sport organizations? e.g., Walker and Kent (2009); Inoue et al. (2011) Does CSR create social benefits? e.g., Inoue and Kent (2012)

29 7/18/ Tsukuba Summer Institute 29 Role of Corporate Credibility in CSM: Research Questions RQ1: Can sport organizations promote proenvironmental behavior through their environmental initiatives? RQ2: If so, under what condition do the initiatives increase their effectiveness? Reference: Inoue, Y., & Kent, A. (2012). Investigating the role of corporate credibility in corporate social marketing: A case study of environmental initiatives by professional sport organizations. Sport Management Review,15,

30 7/18/ Tsukuba Summer Institute 30 Research Setting

31 7/18/ Tsukuba Summer Institute 31 Promotional Activities

32 7/18/ Tsukuba Summer Institute 32 RQ1: Effectiveness of the Initiatives Respondents who were aware of at least one of the initiatives were more likely to engage in recycling than those who were unaware. In-game recycling Daily recycling Red Goes Independent variables Go Green Green Program awareness.09*.12*.13** Gender -.10* ** Age.15** Education ** -.07 Income Race Marital status.12* R n * p <.05; ** p <.01

33 7/18/ Tsukuba Summer Institute 33 RQ2: Theoretical Framework Organization Characteristics General Credibility Perceived CSR Program Characteristics Perceived Fit Perceived Effort Perceived Impact H1-2(+) Environmental Credibility H3-5(+) H6(+) Pro-environmental behavior Daily Recycling Activities In-game Recycling Intentions Source Credibility Theory: Effectiveness of the initiatives depends on the credibility of professional sport organizations in supporting the environment

34 7/18/ Tsukuba Summer Institute 34 RQ2: Method Data 368 usable responses from subscribers of a local newspaper s online newsletter Measures 32 survey-based items measuring seven constructs Analysis Structural equation modeling (SEM)

35 7/18/ Tsukuba Summer Institute 35 RQ2: Structural Model Results General Credibility.13* Perceived CSR.21*.22** Daily Recycling R 2 =.05 Perceived Fit.08 Environmental Credibility Perceived Effort Perceived Impact.52**.15** R 2 =.91.45** In-game Recycling R 2 =.20 χ 2 /df = /334 = 2.69; CFI =.92; RMSEA =.07; SRMR =.05 * p <.05; ** p <.01

36 7/18/ Tsukuba Summer Institute 36 Summary of Results Professional sport organizations have the ability to persuade consumers to perform pro-environmental behavior This ability increases when the organizations demonstrate credibility in supporting environmental issues

37 7/18/ Tsukuba Summer Institute 37 Agenda 1. Background 2. Overview of CSR 3. CSR in sport 4. CSR through sport 5. CSR research in sport management 6. Announcement

38 7/18/ Tsukuba Summer Institute 38 Questions & Comments? Contact Information: