The UK Football Industry and CSR - Essay Example

The UK Football Industry and CSR Introduction The obligations of businesses and organisations to the communities in which they operate remain a question of much debate [Hor10]. Many views have been given on what constitutes CSR. Arguably, the most extreme of these are those by Milton Friedman and David Packard, a co-founder of the global computer giant Hewlett-Packard. Friedman claimed that the sole social responsibility of any business is to maximise its profits [Asb09]. On his part, Packard stated that many people, possibly including Friedman, wrongly assume that a business exists solely to make profits [Wer11]. It is unlikely that Friedman believed his statement. There have been many gradations between the two statements of what CSR is. However defined, though, CSR is governed by certain principles [Cra08]. This paper describes how the UK football industry has embraced the principles of CSR and evaluated the impact of the industry's CSR initiatives. This goal is accomplished by examining the CSR initiatives of two English football clubs – Liverpool FC and Arsenal FC.British football clubs rely more on the strong ties they have developed with their communities over the years than on CSR principles for the success of their CSR initiatives. Background to Principles of CSR Following are general principles that may provide a framework for CSR[DAm09]: Embracing innovation for the good of the public – organisations, whether for-profit or not-for-profit, should embrace technological and other innovations not just for the achievement of their goals, but also for the benefit of the communities that host them[Cro04]. Putting people at the centre of CSR initiatives – the members of a community, in most cases, know what is best for them[Hoh07]. As a result, an organisation should facilities the participation of a community throughout a CSR initiative. Spreading economic opportunity – the primary way through which organisations do this is by employing locals. Organisations may also implement this principle by educating children from disadvantaged backgrounds, thereby empowering them to pursue the economic opportunities that come their way. Engaging in new alliances – organisations can achieve much more for communities by partnering with other like-minded organisations and individuals than if they pursued CSR single-handedly. Practicing good governance – good governance embraces such principles as inclusiveness and transparency among others. Exceeding the profit maximisation motive – even though businesses exists primarily to make profits for their owners, they must go beyond that goal and give back to the communities that support them and enable them to make a profit. Performance-orientation – organisations should be able to measure the impact of their CSR initiatives on communities and the environment Going the extra mile – good CSR requires that an organisation goes beyond the bare minimum of meeting its legal obligations to the community and environment[Rus06]. Discussion Brief History of CSR in UK Football CSR in English football dates back to the 1800s, but back then it was not referred to CSR as the concept did not exist (it was Andrew Carnegie who first wrote about CSR in 1899)[Ros111]; people simply acted ethically. The first English football clubs among the English and in the rest of Europe were owned by churches, companies, public schools and pubs[Mas80]. For churches, for instance, football was an effective way of helping homeless children and teenagers. They were picked from the streets and housed near the church. Football clubs founded by churches – such as Everton, Fulham, Southampton and Aston Villa – then recruited their players from the youngsters salvaged from the streets. As they played for church football clubs, the teenagers were fed, clothed, educated and integrated into the society, privileges they may not have enjoyed if they had remained in the streets. Starting the 1980s, English football clubs became even more aware of their role in society. During the summer of 1981, racial tensions paved way to serious riots in London, Liverpool, Leeds and Manchester. The riots were caused by minority communities of colour that could find neither work to do nor food to eat. The British Government responded by introducing programmes of social inclusion. “Action Sport”, one of the programmes, aimed to enhance the living conditions in poor communities by encouraging them to participate in sports. Today, English football clubs approach issues of social inclusion through philanthropy and volunteerism[Wal10]. The clubs use their increased wealth and the knowledge and links they have accumulated over the years to fund their CSR programs. Liverpool FC Liverpool is one of the largest English football clubs by fan-base[Ros111]. As of 2010-2011 Premier League, Liverpool ran only nine CSR programs compared to Chelsea’s 44 and Arsenal 34 during the same period. Chelsea and Arsenal are some of the wealthiest clubs in the English Premier League. The nine programmes covered the areas of education, sport, social inclusion, cultural integration, family, health and charity. The programs were split into several sub-programmes, making the club one of the most community-active clubs in the English Premier League. To better understand how well or otherwise Liverpool FC has applied the principles of CSR and the impact of its CSR efforts, it will be helpful to focus on one of the club’s programmes dubbed “Liverpool Action for Health”. North Liverpool has some of the poorest health services nationally[Ser]. For this reason, the club is working with government authorities at the national, regional and local levels to address the health challenges facing Liverpool North. The “Liverpool Action for Health” programme is funded by the European Union and managed by Liverpool FC. The programme involves targeted healthy living initiatives for the youth, adults and senior citizens. The initiatives include Health days, health checks and health points where residents can access health information. The health points are located in such places as community centres and pubs. As part of the programme, the club is seeking to improve the health of its staff and supporters through a project dubbed “Healthy Stadia”. The club piloted the project in 2005. The club displayed healthy eating posters throughout the stadium, offered healthy menu alternatives through its catering unit, offered free health checks and availed information via its website. Through the programme and the project, over 800 staff, supporters and residents of North Liverpool were checked. From the checks it was discovered that Type 2 diabetes and high blood pressure were prevalent conditions. Consequently, targeted programmes have been developed and integrated into the club’s ongoing programmes. One of the principles of CSR outlined earlier plays out in the case study described in the preceding paragraph: the formation of partnerships to enhance the impact of CSR initiatives. In a bid to address the health inequalities that manifest in North Liverpool, Liverpool FC works with a number of government agencies, institutions and departments at the various levels of government [Ser]. Each player brings with them a unique set of advantages which, when combined, make CSR initiative more beneficial to the target population. In the “Liverpool Action for Health”, the club partnered with the European Union that funded the programme while the club executed and managed it. Had the club undertaken the programme single-handedly, it may not have received adequate funding given that the club runs a host of other programmes that all require funding. In a way, Liverpool FC’s programme is people-centred: it seeks to improve the health of the club’s staff and supporters and the rest of North Liverpool residents. However, there is no evidence that the beneficiaries of the programme were consulted in designing and implementing the programme. Overall, Liverpool FC either has no system in place to evaluate the impact of its CSR initiatives or if it has, the system is weak. In the case study, there is no evidence that individuals benefitted from the programme. However, on the positive side, the programme led to the realisation that two conditions were prevalent in North Liverpool: Type 2 diabetes and high blood pressure. As a result, the club developed targeted solutions to the programmes. The targeted solutions have since been integrated into the club’s ongoing programmes [Ser]. Arsenal FC Arsenal FC is based in London and is one of the football clubs founded by corporations[Bab06]. The club was founded in 1886 in south-east London by Woolwich, the guns manufacturer, hence the club's nickname "the Gunners". During the Industrial Revolution in Britain, life was tough for industrial workers, most of them men. They were overworked and had little time to relax. For most of them, the little time they got off work was spent in the pubs. Realizing the danger of a community of alcoholic workers, industrialists grappled with ways of keeping the men off pubs, hence the formation of football clubs by corporations. Arsenal moved to the north of the town in 1913 upon the completion of the construction of the club’s new stadium located in Highbury borough. The residents of northern London soon embraced the club as their own; at last they had a club to represent them and their part of town. The strong link between the residents of northern London and the club has endured to date [Ros111]. Arsenal is aware of its importance to the residents of northern London and so the club runs several CSR programmes in the nearby boroughs of Islington, Hackney and Highbury. As of the 2010/11 English Premier League, Arsenal ran 34 CSR programmes, second only to Chelsea and its 44 programs. Overall, it appears that the number and quality of CSR programmes run by a football club depend on the wealth of the club and the role it plays in its community [Bri08]. Arsenal’s CSR schemes cover several areas including the environment. For instance, the club has a waste recycling plant with the monthly capacity of 10 tonnes of plastic and cardboard and 1.5 tonnes of glass[Dos14]. However, one of Arsenal’s biggest and most successful programmes is the “Double Clubs”, a post-school club established for primary and secondary school pupils. The programme offers education via football and the knowledge the club has accumulated over the last one century. The pupils learn the languages of Arsenal’s foreign players, informatics taught by the club’s IT partners, British history starting with that of Arsenal and the role the club has played in British history over the years, art and design from the Emirates Stadium. The pupils also learn about setting up and running a business using the practical example of the club itself. So successful has been Arsenal’s “Double Club” at motivating pupils and improving their academic results that the British Government, through the Department of Education, is rolling the programme to other English clubs through Playing For Success Study Support Centres established by the department. Like Liverpool FC’s health programme, “Double Club” embraces the CSR principle of partnership. The club engages its foreign players to teach the programme's pupils their foreign languages[Ser]. The club also teams up with its IT partners to impart IT skills to the pupils. Elements of transparency, a pillar of good corporate governance, are also evident in the programme: the club “strips itself naked” so pupils can learn what it has taken it to get where it is today. Even though information on was the programme was initiated, designed and implemented may not be available, its resounding success is an indicator that the programme may have involved the residents of northern London right from the start. As far as the impact of the programme on its beneficiaries is concerned, information is scarce. However, at the community and national levels, the programme is hailed as a big success [Ser]. Conclusion Several principles govern successful CSR. Key among these is the participation of the targeted beneficiary community in the CSR programmes and strategic partners [Cra08]. British football clubs have a long history dating back to the early 1800s, even though the concept of CSR had not emerged then. The minority riots of people of colour in leading British cities in the early 1980s added impetus to CSR. Today, many English Premier League football clubs use part of their massive wealth to fund CSR programmes. Overall, these teams are good at forming strategic alliances with other actors to ensure the success of their programmes, but there is no evidence that they actively involve the beneficiaries of their programmes from conception to design to implementation of the programmes. However, this limitation is compensated for by the strong ties that these clubs have developed with their communities over the years. References Hor10: , (Horrigan, 2010), Asb09: , (Asbury & Ball, 2009), Wer11: , (Werther & Chandler, 2011), Cra08: , (Crane, et al., 2008), DAm09: , (D’Amato, et al., 2009), Cro04: , (Crowther & Martinez , 2004), Hoh07: , (Hohnen, 2007), Rus06: , (Russian Managers Association, 2006), Ros111: , (Rosca , 2011), Mas80: , (Mason, 1980), Wal10: , (Walker & Parent, 2010), Ros111: , (Rosca, 2011), Ser: , (Sermon, n.d.), Bab06: , (Babiak & Wolfe, 2006), Bri08: , (Briebarth & Harris, 2008), Dos14: , (Dosumu, et al., 2014), Read More