The role of Corporate Sponsorship in Social Responsibility Practice Research

The role of Corporate
Sponsorship in Social
Responsibility
Practice
Research Question:
How can corporate sponsorship of events contribute to
a firm’s practice of Corporate Social Responsibility?

2.1 Introduction
Sponsorship is the most important marketing tactics that help the companies to attract the
attention of its stakeholders towards its products and services. The tool of sponsorship has been
used by the companies to market it product and to change the consumer perception towards its
positivity. According to the number of theories and concepts that have emerged recently had
contributed to the corporate social responsibility of the organizations. It has shaped the consumer
perceptions towards the company positively in a way that the consumers’ understanding grew
towards the company’s activities. The sponsorship has been used as a way to achieve the
targeted goal of the company‘s positioning in the eyes of its stakeholders. For example,
according to Alcázar & Fernández, due to the positive attributes associated with the sports that
include cultural integration, sustainable awareness, youth appeal, and health awareness, many
companies globally have used the sport sponsorship to promote their CSR motives (Alcázar &
Fernández, 2013). The sponsorship events are quite influential in transforming the
stakeholders’ attitudes and intentions positively towards companies CSR objectives. Due to the
transformed positive attitudes of the stakeholders, the productivity of the company is improved
in long run. Moreover, the practice of using sponsorship programs for building CSR awareness
improves upon the commitment of the stakeholders towards the organization. It has also made
people aware about the organization obligation towards their well-being thus making them claim
for it, when needed.

This dissertation will be discussing about the concept of social responsibility and
sponsorship that how sponsorship affects the practice of the firm. This chapter starts with the title
defining corporate social responsibility where various definitions of the authors were discussed
and their meanings were comprehended in a manner that makes the target audience understand
the situation. The section below also discusses its advantages and disadvantages that make its
one of the essential attribute of the organization. The practical applications are also mentioned
that signifies it importance in an effective manner. The next section of it focuses on the type of
the stakeholders and their role in the activity. Further, as the dissertation progresses the changes
to the values in the society are described and the type of the business strategies used in CSR.
Further, various approaches to CSR practices have been discussed that include philanthropic,
corporate volunteerism, and cause related marketing. At the end of the chapter, various practices
related to sponsoring of the events have in CSR practices have been discussed.

2.2. Defining Corporate Social Responsibility
Carroll et al (2012) mention that evidence of businesses seeking to improve society can
be traced back hundreds of years. However, the topic of corporate social responsibility (CSR)
has been an important and progressing area for businesses since the 1950s. From a scholarly
perspective, in 1958, Theodore Levitt (1958, p.49) speaks of “The Dangers of Social
Responsibility in the Harvard Business Review.” That is the time when corporations came under
attack for their large size and power (What is CSR , 2019) Then, much of the literature
addressing CSR actually begins in the United States where it continues to receive attention under
different names, such as within discussions about corporate sustainability or responsible
corporate citizens. These discussions tend to focus on how companies should be more aware of
their societies in terms of creating greater accountability. This include a focus on reducing
human rights abuses, developing sustainability strategies, applying corporate governance codes,
and promoting workplace ethics; together with being closely involved in stakeholder
consultation and management.(McIntosh and Andriof, 2001)
A book by Bowen (1953), titled Social Responsibilities of the Businessman, was possibly
the first book in the field of CSR. Bowen (1953, p.6) addressed the issue that CSR is about
businessmen being obliged to make policies and decisions, and to follow actions with respect for
the values of the society. CSR in practice actually began in the 1960s, where there appeared
attempts to define it (Carroll 1999). An early attempt at a definition of CSR by Keith Davis
(1975) suggested that social responsibility is the obligation of decision makers to take actions
which protect and improve the welfare of society along with their own interests.
Sheehy (2014) suggests that defining CSR is actually complex because CSR operates
within the dynamic systems of ecology, society and the economy (Sheehy, 2014). It is also
complicated because interested groups involved in this CSR’s defining process, have different
agendas and their own priorities (Sheehy, 2014). Business scholars like Varadarjan and Menon
(1988) suggested CSR is viewed as a reputation risk management tool with regards to CSR ‘s
marketing implications. Howard-Grenville et al (2008) view CSR as a social license. Segon and
Booth (2009) view CSR as the manifestation of business ethics. Devinney et al.(2010) view CSR

as a business sub-discipline or a type of social consumption. Managing discussions among
scholars across disciplines of business or management, law, political science and sociology,
together with other highly interested parties including government and NGOs, for example have
been extremely difficult to conclude and unify the definition (Benedict Sheehy, 2015,pp630 -
635)
.
A thorough review of the literature identifies that there exist many definitions regarding
corporate social responsibility (CSR). Indeed, research by Dahlsrud (2006) identified 37
different definitions of CSR; there he mentions not listing all of the definitions which he has
actually identified. Within the review literature, there appears to not be one solid definition of
CSR which is applied consistently across the world. However, broadly speaking, it appears that
CSR includes all corporate practices in order to uphold the principles of creating a positive
impact on society, and to respect and preserve the environment. (Dahlsrud, 2008) However, a
review of the literature there does appear to be a few definitions of CSR that are used profoundly
by reputable institutions. They are identified below.
In 2001, the European Union published a Green Paper on Corporate Social
Responsibility.(European Commission, 2001) There, it tries to offer a framework for companies
wishing to invest in sustainable development. They define CSR as:
Most definitions describe CSR as a concept whereby companies integrate social and
environmental concerns in their business operations and in their interaction with their
stakeholders on a voluntary basis. Corporate social responsibility provides the
foundations of an integrated approach that combines economic, environmental and
social interests to their mutual benefit. It opens a way of managing change and of
reconciling social development with improved competitiveness.(‘GREEN PAPER
Promoting a European framework for Corporate Social Responsibility’, 2001, p.7)
The International Organization for Standardization (ISO) is an international standard-
setting body. ISO 26000 standards are used to assist firms in defining their social responsibilities
and their contribution to sustainable development.(ISO 26000 Social responsibility, 2020)

Within these standards, Social Responsibility is defined as:
Responsibility of an organization for the impacts of its decisions and activities on society
and the environment through transparent and ethical behavior that
- contributes to sustainable development, including health and the welfare of society ,
- takes into account the expectations of stakeholders,
- is in compliance with applicable law and consistent with international norms of
behavior &
- is integrated throughout the organizations and practiced in its relationships.
(Definitions in ISO 26000, 2020)
The World Business Council for Sustainable Development (WBCSD) is an
environmental NGO led by 200 CEOs of international companies. They identify attempt to
measure an organization’s success within its involvement in the environmental community.
(World Business Council For Sustainable Development (WBCSD), 2020) They define CSR as
follows:
Corporate Social Responsibility is the continuing commitment by business to behave
ethically and contribute to economic development while improving the quality of life of
the workforce and their families as well as of the local community and society at large
(The World Business Council for Sustainable Development ,1999, p.3)
From the above discussion, we can summarize a number of major points that tend to relate to
defining CSR. They include:
 CSR is a continuing commitment and contribution to the society at large.
 CSR is about sustainable development of the environment and the local
community.
 CSR tends to be a voluntarily-based action initiated by ethical motive
 CSR tends to consider the needs of a firms’ stakeholder interests