Corporate Social Responsibility (CSR), which is an integral part of the corporate culture in modern times, allows businesses to positively impact society. CSR started out as a concept that referred to entities that wanted to surpass society’s standards rather than simply perform according to the law. CSR is a new business model which helps companies be more socially accountable to their stakeholders, the community and themselves. CSR defines itself by how we generate value and interact with eachother. CSR is about creating and living in the societies that we desire (Hond et.al. 2007). CSR has become increasingly popular as companies realize that it serves a dual function: it increases exposure, profitability and contributes to societal wellbeing. Sport sponsorship is a way for companies to improve their public image and increase publicity. This paper will focus on McDonald’s CSR sponsorship of sporting organizations and events. We will provide context on society’s opinion of McDonalds while also discussing the CSR program and its effects.
McDonald’s began in San Bernardino California in 1940. In 1971, McDonald’s first Australian outlet opened in Yagoona. Since then, McDonald’s has expanded to more than 970 outlets in Australia. It is also available in 120 other countries around the globe. According to research conducted by Roy Morgan’s market research, McDonald’s is Australia’s most popular fast food restaurant. According to Roy Morgan (2018), out of 17,000,000 Australians, 52.7% consumed McDonald’s at least six times per year. McDonald’s continues to be popular and offers a delicious menu at a low price. However, it has also been associated with a negative association of health. In order to reduce weight gain, the Australian Dietary Guidelines recommends that people consume more complex carbs and fibre and less saturated fats. Nasseem Malouf & Stephen Colagiuri stated in a 1995 study that McDonald’s, Kentucky Fried Chicken, Pizza Hut and other fast foods contain a lot of fats. McDonald’s, KFC and Pizza Hut are all high in fats. According to a 1995 National Nutrition Survey and a type II diabetes study, 55% of Australian adult were either overweight or obese. Using the figures, it was estimated that 41% of Australia’s type II diabetes was due to obesity or overweight (Marks, Coyne &Pang, 2011). According to Huffington Post’s report, 49.8 percent of Australians are in compliance with the Australian Nutritional Guidelines, and McDonald’s is a favourite of those who enjoy fast food (Campbell 2015). Sport industry is becoming more aware of their influence in the communities they operate in and use that influence to support social responsibility agendas (Gill 2017). Sport sponsorship is a common practice within companies. It helps achieve corporate objectives such as marketing, media and advertising. The United Nations has promoted the use of sports as a means to promote peace and development. Sponsoring athletes and sports allows brands to gain exposure, but also allows them to be perceived positively. This is a great way for a business’s CSR. In a study on the promotion CSR by using sport, it was stated that sport has a unique ability to influence the society and the communities. Sport organisations are implicitly woven within society”(Smith & Westerbeek 2007. McDonald’s’ sponsorship of sporting organizations and events allows sports fans to remember and associate their brand with positive sporting experiences. McDonald’s Australia’s sponsored groups, such as Little Athletics NSW and Swimming Queensland, the South Australian National Football League Junior Development Program, and Macca’s Junior Sports Grants can be identified by a close analysis of their major sponsors. These groups share many common features, including the grassroots organization of sport for children. In an Australian journal, which discussed the sponsorship of junior sports development programs, it was stated that children were a key target audience for advertising. They are responsible for determining the purchases made by their parents, they incur their own costs, and they can be loyal to brands and established consumers. The sponsorship of junior sport development programs gives companies the opportunity to connect with children through their brand. There are no restrictions in Australia on sponsorship of sport. The Tobacco Advertising Prohibition Act, 1992 restricts advertising of tobacco and alcohol to children. A company can advertise its brand as a sponsor of an athlete, event or organization. A company can standardise their brand by regularly exposing children and associating them with events or experiences to which they have a common emotional connection. McDonald’s’s stance on grass-roots sports is questionable. Is it genuinely committed to promoting them or are they simply profiting?
McDonald’s says that they support sponsorships to promote health. Should we see their efforts as CSR projects with positive social impact? McDonald’s has stated on its website that they “focus on activities to improve the wellbeing and health of Australian Children”. McDonald’s Australia, 2018). McDonalds may not be solely to blame for Australia’s health issues, but they do contribute. This is especially true in relation to obesity and overweight. Every year, parents express concern over the McDonald’s ads in sporting environments. Essential Kids, an online resource that helps parents with advice via forums and articles, revealed the impact of McDonald’s sponsorship in 2012. “I don’t really care about how much McDonald’s cares for grassroots sports. The only thing my children think when they pass the Golden Arches at McDonald’s is which burger-and-fries combo they would like me to purchase, not playing footy” (Malone (2012). The Conversation, another news website, published an article about “Unhealthy sport sponsorship continuities that target children”, in which they highlighted McDonald’s involvement as a sponsor of many organisations involved with children’s sports (The Conversation 2016). Mumbrella, a website that covers the Australian media and marketing industry, published McDonald’s reprimand after a parent complained. “It is already difficult to promote a healthy life style to children within this environment. I don’t like junk food to be given as a reward during a sport activity. This promotes unhealthy lifestyle choices, such as eating junk foods after sports activities. I do not want my children to be influenced by this. CSR initiatives aim to contribute positively to society. Has it been enough to point out the negative allegations and complaints made against McDonald’s?
McDonald’s also signed a sponsorship partnership with eSports partnering with StarCraft 2 World Championship eSports Series. This sponsorship was only available in Australia at this time and included naming, on ground activations, content implementation, and branding for all touchpoints relating to the events (Hickman 2017). Multiple studies have examined the negative effects of computer entertainment games. The social cognitive theory explains how violence in a gaming environment can be internalized by a player and then transferred to real life. Another theory is the excitement transfer theory which explains how previous excitement can intensify a players emotional state. StarCraft 2 World Championship eSports Series reaches millions of people each year. McDonald’s can reach a new audience with the evolution of eSports. Computer games tend not to promote healthy lifestyles or physical activity. Two industries that have known health issues can cause health problems. McDonald’s sponsorship is clearly not a CSR effort to help the community, but a sham to mask their real intentions of brand promotion.
In conclusion, we must identify the CSR definition that is held accountable by all stakeholders, society, and ourselves in order to improve societal wellbeing. CSR is used to increase exposure and profit. McDonald’s history was overlayed with facts to give a better understanding of what the company is like. McDonald’s Australia’s most important sponsored groups including Little Athletics NSW, Swimming Queensland, South Australian National Football League Junior, and Macca’s Junior Sports Grants have provided relevant information for understanding that McDonald’s sponsors primarily grassroots sport organizations. McDonald’s’s strategy to boost public relation symbolism and profit is the main reason for their less-than-awareness of demonstrated impacts. McDonald’s advertisements in the context of children’s sports are accompanied with articles that focus on the parental concerns. This is evidence of the initiative not meeting the CSR criteria. McDonald’s sponsoring eSports shows that they are able to make money from their exposure. McDonald’s CSR initiative is clearly geared towards profit and not community growth.
