CSR: Business Practices

Write an essay on Corporate Social Responsibility.

 

Corporate Social Responsibility or CSR is includes the business practices that also incorporates benefits of the society. CSR increases long run benefits of the company and enables the company to attain sustainability in the business. The companies must put their effort not only to maximize their profits but also to have positive impact of its business on environment and social well-being. CSR has gained growing importance in the business management (Clapp and Rowlands 2014). Corporate Social Responsibility also receives specific attention in the field of sports industry. Professionalization of the many sports in last few decades indicates that some major sports event has become an industry itself, as these sports involve management and marketing as well (Chen et al. 2015). In this research, the focus will be on understanding the Corporate Social Responsibility in the Sporting industry in Australia, specifically on influence of Football or Soccer. The purpose of the research will be stated and significance will be identified. In addition to this, research questions will be formulated in this paper. This proposal will brief the literature, based on which research is based upon. It will also analyze the research methodology and discuss the ethical consideration. It will also brief the expected outcome of the research to be conducted.

 

The purpose of the project is to identify the role of CSR in the Sports industry; and how it is gaining importance over the years. In this section, research questions will be formulated based on the research objectives as follows:

• To find out if soccer creates value through Corporate Social Responsibility and how sports-based companies view Corporate Social Responsibility
• To evaluate the significance relationship between performance of the Sports Company and CSR.

a) Does Soccer create value through CSR?
b) How do the sports-based companies view CSR?
c) How much the Soccer clubs or national Football franchise spend on CSR?
d) Is there any relationship between the performance of the company and Corporate Social Responsibility?

Carroll has described the evolution of modern CSR and concept has diversified and developed on conceptual basis. The four dominating areas of the study of CSR are economic responsibility; legal responsibility; ethical responsibility and philanthropic responsibility (Cortsen 2013).

In terms of economics, the sports teams have responsibility to earn profit. The sports franchises emphasize to earn profit that affects the economic development in the region. Professional sports teams have major influences on the city, in terms of employment generation. Scholars have noted that franchise or a sports team can bring other business into the city if the team improves the image of the area. Unlike traditional business, sports businesses are valued on their created revenues apart from cash flow and assets. The type of players the team can afford depends on the revenue (Kitzmueller and Shimshack 2012). Moreover, the operating structures of sports teams are different from traditional organizations. The sports leagues are mostly owned by corporations and some are owned by small partnership goals. Therefore, how the companies are making profits are the corporate responsibility of the sports franchise.

The sports teams are also bound to follow laws and the regulations of state and federal government. The sports teams and the league corporations receive legal benefits because of their category. Hence, it is more important to follow all legal rules. Scholars have opined that sports laws have become a discipline because sports like Soccer produce million-dollar deals, in terms of player contracts; media usage and league revenues from gate receipts; club seats; advertising etc. These high stakes lead to legal issues in this industry (Ehie 2016). To maintain fair competition in each league, anti-trust laws are different. Issues like gambling for match fixing; trademark rights and doping are major in terms of legal responsibility of the sports industry. For player’s involvement in the illegal activities, organization is not responsible but activities of one player do have severe impact upon the team. Hence, it is crucial to incorporate legal responsibilities under CSR.

Apart from economic and legal responsibility, sports companies should confined to maintain additional behaviors and activities that are not mandatorily codified. Ethical aspect includes fair play by the players and sportsmanship (Paramio-Salcines, Babiak and Walters 2013).
Philanthropic responsibility of the sports industry incorporates cash donation to the NGOs, like, free tickets; sponsorship of some community event; volunteerism of the employees. Since, professional sports teams hold a high profile; philanthropic responsibility is important in order to succeed financially (Manimalar and Sudha 2016). It is empirically evident that professional teams are engaged in charities of millions of dollars. Hence, this aspect is incorporated under CSR.

Sports clubs of Europe adopted CSR in order to achieve strategic organizational goals (Blumrodt, Bryson and Flanagan 2012). In the North America, CSR activities of the sports team are driven by internally and externally as well. The Scottish Premier League is significantly engaged in the CSR activity and this involvement is considered as motivation for the company (Hamil and Morrow 2011). In contrast, the Italian Serie A League is forth among European soccer leagues in terms of revenue but they have put less effort in the CSR activities (Picariello and Trendafilova 2012). At the global level, FIFA has also created CSR unit. This research will further find out the involvement of CSR in the sports industry and its relevance in the sports management.

 

In order to answer the research question, it is required to explore Corporate Social Responsibility within the sports industry, specifically the influence of Soccer. To conduct this research, proper methodology is required to be adopted.

Research Philosophy: The philosophy of this paper follows “positivism”, as this research relies only on the real facts and figures; and does not take into account any subjective facts like human interest and emotions.

Research Approach: The approach of this research work is inductive in nature. This is because; here the research will be conducted to answer some specific research questions formulated in the beginning of the research process (Panneerselvam 2014).
Research Design: The design of this paper is descriptive in nature. It does not aim to formulate any hypotheses from the findings. This kind of research work aims to answer some specific questions. It focuses on building the idea of the research topic. It tries to answer the questions like “How”; “What”; “when” rather than “why”.

Data Collection Method: In order to find out the answers to the formulated question, both quantitative and qualitative data is to be collected. In order to find the value creation through CSR; spending of the Football franchises, the information will be in terms of numerical values. Therefore, the data will be quantitative in nature (Neuman and Robson 2012). The research is also based on qualitative data as to know the views of the sports based company about CSR, interviews are to be conducted with the owners of the sports franchises or with other members. These information are qualitative in nature that will help to describe the relevance of CSR in this industry.

Data Type: The research is based on both primary data and secondary data. The figures of revenue or the spending on CSR can be obtained directly by enquiring the sports companies; this is primary in nature. However, the data might be available in the official websites of the companies or in other medium, which will be considered as secondary data. The relevance of CSR in sports management can be identified from several journal articles; research paper or books. The collected information through questionnaire is of primary in nature.

Sampling: The quantitative data are collected through random sampling method. Some random sports franchises or companies of Australian Soccer have been chosen in order to collect their revenue through CSR and spending on CSR. Questionnaire has been provided at the time of interviews to collect the views of the sports companies of this country regarding Corporate Social Responsibility.

Data Analysis: The collected quantitative data will be analyzed through statistical tools. As one of the research questions aims to find out the relationship between the performances of the sports-based companies, this will require to carry out an overall analysis. This will help to understand the statistical significance of CSR in performance of the sports business. Through collecting quantitative information, facts can be obtained and analyzed to answer the research problems.

 

The research must consider addressing the ethical aspects. The data or information should not be hypothetical; it must be real. Otherwise, the finding will not be reliable. If the revenue and spending amount on CSR is collected from primary sources, research will not publish the values without the consent of the owners or the management and it will only analyze the values and interpret the results in the data analysis section. The individual response obtained from questionnaire or interviews must be kept confidential (Gajjar 2013). The secondary data that are obtained from other research papers on the same topic, will be addressed properly and will not be used or demanded as primary data.

It is expected that most of the sports based companies of Australia prefers CSR in their business practices. From the literature review, it has been identified that importance of CSR in the Sports industry is growing over time. Therefore, there can be positive relationship between CSR and performance of the company.

Project Report:
Corporate social responsibility in the Sporting industry in Australia: a focus on the influence of Football (Soccer)
Introduction:
The society is increasingly interested into engaging in Corporate Social Responsibility (CSR) and this is a very important area in the corporate sustainability on the public, business and research agenda. This is crucial for the business management and gained in the management discipline. CSR helps the organization to clarify their business ethics, acknowledge the expectation of the stakeholder and associate it to the benefit of the society (Plewa et al. 2015). CSR is an area where there is extensive literature is available on the internet. All professional degree holders and researchers they have agreed CSR is important for business as this would imply the variation in the understanding of the term , issues related to it and by whom it is applied(Mazodier et al. 2015). All the global industries are engaged in the development, discussion and implementation of CSR. This will help the managers to perform better and compete. There is very little relevance of CSR noticed in the sports management and marketing specially in football industry. Sports franchises are interesting phenomenon in respect to CSR to maintain profit and their success related to finances depends on the community support for the team (Beus, Matanda, and Michael 2016). There are different ownership and management model followed by the sports franchises. There are teams owned by a single owner of large multinational group. The sports manager needs to be aware of the developments that are taking place in the socio economic forum just like that of the corporate managers taking in to consideration the stakeholders and their interests. The sports industry in Australia is huge business. Sports business in Australia contributes 7.9 billion dollars to the economy Australia and employment generated is around 95000. The imputed value for the voluntary contribution to sports is around 1.6 billion dollars (Paramio-Salcines et al. 2015). The industry ranks with the defense, transport and financial services in importance to the GDP of Australia. The increasing awareness related to the governance issues in the business helps in giving a framework for the evaluation of the emerging focus on the issues of governance in the professional sporting bodies. CSR in the football industry is important part for each clubs agenda it is more than just a trend of business. The activities communicated through this have not gathered enough of academic interest. This research report will help in the investigation of role of CSR in professional football and data collected through the sports franchises or the companies of the Australian Football. This would help in understanding their spending on the CSR and earnings from it.

Research Problem/ Issue and the Description of the Organization/ Industry
The researcher faced a lot of problems while conducting the entire research. One of the most important factors in this case is the cost factor. As a result, it was not possible for the researcher to reach out to more individuals in order to know their CSR value related to sports. the researcher also found it difficult to find the data that were collected regarding the contribution of the sports industry in the economy of Australia.

The main reason for the problem was that the time period was limited. The researcher also found it difficult to make quantitative prediction. It also became difficult to make quantitative prediction and the analyzing the data was also time consuming. As far as qualitative research is concerned, there are relatively small numbers of individuals who participates in the research method. These participants are less probable to take the research process seriously (Hamari et al. 2014).

One of the most important outdoor team sports in Australia is the Soccer sports also known as football. It was in the late 19th century, the British migrants introduced the modern Soccer in Australia. Wanderers were the first club that was formed in Australia in the year 1880. The National Soccer League was first introduced in the year 1977 (Soni, Verma, and Joshi 2016). However, later a fully professional league replaced it. The domestic Soccer competition runs throughout the year in Australia. However, the professional league takes place during the summer season and the semi-professional league takes place during the Australian winter season (Hallinan and Hughson 2013).
The Football Federation Australia that is FFA governs the Soccer in Australia. At present, FFA is the member of the Asian Football Confederation as well as the regional ASEAN Football Federation. The Professional Footballers Australia mainly represents the former as well as current Australian expert players of Soccer (Galbreath and Shum 2012). As per the records, in the year 2006 a total of 970,730 individuals in Australia participated in the sports (Stell and Salisbury 2015). 

As opined by (Trendafilova and Nguyen 2015), in the sports industry in Australia the Corporate Social responsibility (CSR), is a growing field of academic study. In the case of the high profile individuals who are associated with the Australian Sports industry, CSR has become a common factor. CSR is also known to have a youth appeal that helps the young people to get engaged to a CSR program that is associated with sports. CSR also helps to deliver a positive impact on the health with the help of the programs as well as proposals that are designed around physical exercise (Hassan, 2013). CSR also helps to aid the social communication by perpetually involving group participation. Thus, with the help of CSR the sports industry in Australia will receive an instantaneous benefit of indulgence.

As opined by (Foreman 2012), the sports industry in Australia is a huge business and the sports industry contributes more than $7.9 billion in the economy of Australia. The sports industry also generates employment to more than 95,000 individuals (Kasemsap 2014). The most successful football code in the country is the Australian Football League which is also known to conduct the most admired national sports league. In Australia, there are almost sixteen clubs for football and a self-governing commission administers the Australian Football League and the commission members are elected by the clubs. The commissions are in turn responsible for the long-term development of the game. The Australian Football is responsible for generating revenue of $108.447 million and the turnover of each club is roughly $15 million (Vyas and Nalwaya 2015).

The corporate social responsibility in the football sports is widely acknowledged by the corporatization of sports. The corporate performance of Football in Australia has been improved by considering three major drivers. The globalization of the business has been one of the major reasons which surpass the national laws as well as regulation. The growth in theThe Australian Football is a strange irony that is played almost completely and the Australian Football is also an outstanding entity. As per the reports, there are more individuals who are willing to participate in the Australian Football. The first resident of Australia as well as the Australian Football shares a rich entwined history (Bradbury and O’Boyle 2013). The development of the game is one of the most vital parts of the Australian Football League as it provides broad national strategies across six core areas. The six core areas include participation, coaching, sports first aid, talent as well as umpiring, community and original programs and events (Coutts et al. 2015).

The corporate social responsibility is one of the important parts in the football industry. The report mainly aims at filling up the gap of the literature by providing the ways in which corporate social responsibility is promoted. As opined by (Vrondou 2015), the corporate social responsibility has evolved as a noteworthy strategic issue for the modern corporation as well as it received augmented attention by the researches on the worldwide basis. The sport holds an economic importance in Australia as it employs more than 75,000 individuals in Australia. As per the reports, each year the households in Australia spends more than $A8.4 million on the services and commodities related to sports (Breitbarth et al. 2015). The people in Australia are fitting sports into their busy schedule with the objective of getting a healthy lifestyle.

As opined by (Smith, 2012), the theory of the stakeholders suggests that the CSR or the corporate social responsibility requires the association of the sports industry to consider all the interest of the stakeholders which includes the investors as well as the consumers and the suppliers. The corporate drift towards the social responsibility symbolizes a vital opportunity for capitalizing a plea on sports. The operation of corporate social responsibility in the course of the sport offers considerable potential for society return.

The enlistment of the sports as a vehicle in order to contribute to the corporate social responsibility is viewed as a distinct opportunity which is mainly for the organization which is in charge of the sports. The Sports industries in Australia are known to make the tradeoffs related to CSR. However, in the trade off related to sports industry in Australia, the consumers mainly demands for a better stadium, which fulfils the requirements of the community. there are two different ways in which CSR can act. The first one is that the sports industry can be good for CSR and the second is that the sports industry can be good for CSR.

The dimension, which is associated with the social responsibility of the sports industry, should be acknowledged. The procedure of achieving the social return from sport is very uncertain and it also lacks a logical force for confederacy. The following are the features that are associated with the social responsibility of the sports:

The Corporate social responsibility in the Sporting industry in Australia, offers a platform which helps to encourage the social interaction in a practical way. The programs which are associated with Soccer are mainly designed for social return which stimulates social consistency as well as fair play.

The Football Association in Australia has made a noteworthy investment regarding the social responsibility. As per the reports, more than 40 percent of the income of FIFA goes directly towards the support of the grassroots of the game. The qualitative analysis is one of the best analyses that need to conduct while dealing with the corporate social responsibility of the sports industry in Australia. With the help of the analysis, the researcher was able to reveal that how the sports teams are engaged in a number of socially responsible activities. It has also been found that the different teams of the football industry in Australia puts into practice the diverse corporate social responsibility which are mainly based on the core mission of the programs (Westerbeek and Smith 2012).

The corporate socially responsible activities related to the Sporting Industry in Australia are not restricted to charitable donation, charity, initiatives related to education as well as health and the development of the community. Based on the qualitative analysis, a high degree of interdependence has been noticed among the local community actors as well as the organization associated with sports in the backdrop. Hence, there are a number of factors that have led to the corporate social responsibility in the Sports industry in Australia. There are mainly four categories that are included in the category of CSR. The four factors include compassion, community as well as the education initiatives of the youth (Hu et al. 2016).

Research Methodology is an important part of the research where there are certain defined methods that are used by the researcher. The researcher will be carrying survey by sending the questionnaire to the team owners and community relationship director for different clubs for total respondents of 50. The main aim is to see the function within the team and relationship with CSR.

Research Philosophy: There are mainly three types of research philosophies i.e. Positivism, Interpretivism and Realism. In this particular research, the researcher will be using the method of Positivism. This would involve the scientific collection of the data, which is empirical in nature, and there is no interference with human thoughts. There is a need for a proper hypothesis with the data collected. There is an in-depth analysis of the future conducted through Positivism. The other concepts like Interpretivism and Realism does not consider the real issues and it is also time consuming. The structure that is well defined with the definite rule and regulation is followed in Positivism (Mackey and Gass 2015).

Research Approach: The research approach is important so that research is done accurately. The approaches that is used for the purpose of the research are deductive approach and inductive approach. The researcher in this research will be using the deductive approach. The approach will be dependent upon the conclusion derived from the approach. The inductive approach fails in considering the appropriate forms of recommendation and researcher would not be finding any base which the research is being performed (Taylor, Bogdan and DeVault 2015). In case of the deductive approach, the researcher will be deriving some idea from the previous research that has been already conducted by many other researchers. This help in building knowledge and gathering of ideas.

The researcher will be using the descriptive forms of research. The information will be availed by the researcher by getting a more wider and sound knowledge on the topic which is going to be gathered by the researcher (Blumberg, Cooper and Schindler 2014) . With the information that is gathered the researcher will be trying to develop the feelings and the ideas and put that is practical application as experienced from life. The other two types of research design are not considered as there is no detailed analysis and description that is available for the topic.

Sampling: Sampling is a process through which a certain section of the total population is selected for the purpose of the research (Billig and Waterman 2014). There are mainly two types of sampling in a research i.e. the probability based sampling and non-probability based sampling. There is no biasness in the probability based sampling technique for the selection of the candidates. The research will be using probability based sampling technique for questioning the respondents. Team owners and community relationship director for different clubs for total respondents of 50 would be taken as sample
Collection of data: The data collection is a technique, which helps in carrying out the research through the use of particular tool for the purpose of the research (Punch 2013). The data collection divisions are Quantitative and Qualitative. The researcher in this research will be using the quantitative form of research. The questionnaire framed is based on the 5 point-likert scale. All the questions are close ended.

Quantitative Data Collection:
In case of quantitative collection of data there are 50 respondents interrogated who are selected for the survey. The questionnaires would be sent through the online medium i.e. through the email. The options are provided for each of the possible questions in the questionnaire. Through this the researcher will be able to get the data that is required for the research and this would be helpful in carrying out the future researches. The statistics that is gathered will help in carrying forward the study on the deeper understanding.
Data Analysis: The data that is gathered from the primary sources is related to the journals and magazines that has been collected to frame the literature review. The data that has been collected will be represented in the form of chart and tables so that a clear understanding of the survey is made. The data collected is analyzed in the MS Excel software. Since the data collected is quantitative so it is very easily analyzed and interpreted.
Accessibility Issues: The researcher has to face accessibility issue when performing the research. The collection of the data from the respondents is quite difficult. There were times when the researcher was not able receive the response from the target respondents. Since the medium of internet for accessing the respondents so they were reminded from time to time to fill up the questions for the research so that the tabulation of the data could be made within the time constraint. The collection of the email id of the community relationship directors and the team owners yet the researcher was able to get those from the credible sources.

 

Ethics in research is very important for a researcher. The questions that are framed in the questionnaire must not be made in such a way so that the sentiments of the respondents are not hurt. There is a need for applying ethics in all the stage of the research (Creswell 2013). It is quite important for upholding the ethics in this particular research and the research will be dependent upon the good will of the respondents for willing to share their personal information on their awareness , behavior and attitude (Walter. and Andersen 2013). The researcher should be able to build up a trust so that they are able to deliver the accurate information. The permission of the respondent by the researcher is very important. One must not advantage of the easy to access group, as they are easy to access. The sound type of ethical considerations suggests that the researcher needs to protect and preserve the dignity, privacy and freedom of the participants in the research (Gustafsson Herrmann and Huber 2013. The respondents must be made to learn the nature and purpose of the research so that they can decide whether to engage in the research or not. This will be able to protect against possible harm and providing of the explicit opportunities to refuse or terminate the participant any time. If the respondents do not understand the subject matter then the results can be manipulative in nature.

The researcher uses the primary research for collection of the data. The quantitative form of data collection would be used for the research with some of the close-ended questions. The questionnaire is going to be distributed through the online channel. The responses that are gathered are represented in the form charts and diagrams using the Ms Excel Software.

 

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