The impact of Corporate Social Responsibility programmes on the marketing performance of professional sport organisations in South Africa

Abstract

This study was designed to investigate the impact of Corporate Social Responsibility (CSR) on marketing performance. Previous studies (Walters & Chadwick, 2009:946-967; Hamil et al., 2010:475-504; Spaaij & Westerbeek, 2010:1356-1373) proposed that there is a positive correlation linking CSR initiatives and the marketing performance of professional sport organisations, highlighting that professional sport organisations enjoyed benefits from engaging in CSR initiatives. The benefits identified included an improved brand image, brand loyalty, an increased sales of branded merchandise, thus implying that CSR has a positive impact on marketing performance. After investigating the influence that CSR activities had on corporate identity, image and firm performance, Arendt and Brettel (2010:1469-1492), Jamali and Karam (2018:32-61), Schreck and Raithel (2018:750) also concur that CSR had an important impact on marketing performance as it facilitated brand attractiveness and therefore increased competitive advantage for the organisation. Despite the evidence that there is a relationship between CSR and marketing performance, it was found that there is paucity in knowledge of the relationship between CSR and marketing performance. This study was therefore designed to fill the identified gaps in sport marketing and CSR literature as well as gaps in practice and policy among professional sport organisations in South Africa. The sport industry was selected for this study because it has a unique social aspect that has allowed it to be used as a tool to address problematic situations (Carr et al., 2000; Walters & Chadwick, 2009:946-967; Hamil et al., 2010; Moyo et al., 2015). This implies that the sport industry has a unique affinity for CSR activities. A literature search revealed that there is limited research conducted on CSR in sport in South Africa with research on professional sport in South Africa mostly focused on sport development. The bulk of the research conducted in CSR has been done in a European context, thus indicating a need for more studies to be conducted in multiple environments, and in a developing nation especially to expand knowledge in this field. The examination of CSR literature culminated in the development of a conceptual framework that portrays the relationship between CSR and marketing performance. The study engaged an interpretivist approach because of the nature of the constructs under investigation. Using a set of criteria, six professional sport organisations were selected as the sample group for the study. These six professional sport organisations were representative of the three major sport codes in South Africa as prescribed in the White Paper on Sport and Recreation for South Africa (Department of Sport and Recreation, South Africa, 2012). The six professional sport organisations were the Sharks Rugby Franchise, the Stormers Rugby Franchise, the Cape Cobras Cricket Franchise, the Highveld Lions Cricket Franchise, Ajax Cape Town Football Club and SuperSport United Football Club. A qualitative research approach was selected for data collection with the use of in-depth interviews to collect data. An interview guide was designed and interviews were conducted with relevant individuals in the six selected professional sport organisation. The data collected was then coded using ATLAS.ti software. The codes were generated from the research objectives and following an inductive discourse the data was analysed. The findings showed that the professional sport organisations engaged in CSR activities; however it appeared that they took a social approach in their CSR initiatives. While they identified benefits from their CSR activities, it was shown that no systems or tools were used to measure CSR performance. The study also established that while there are models designed to assess CSR performance in literature, none of them address the impact of CSR on marketing performance. The study therefore proposes a set of criteria that can be used to design a tool to measure the impact of CSR on marketing performance. This study also contributes to CSR literature and to marketing by proposing a conceptual framework to show how CSR impacts on the marketing performance of a professional sport organisation. It further identifies selected influencers of CSR in a South African context. Furthermore, contributions are made both to practice and policy by proposing a set of criteria that can be used to design a tool to measure the impact of CSR on marketing performance. The ability to measure this impact is important as professional sport organisations can use this to justify their CSR engagement to their stakeholders. This has the potential to prompt more investments into CSR.