Navigating the Ethical Landscape: The Role of Purpose in Marketing and Sponsorship

March 8th, 2024

The number of private sector businesses in the UK sits at well over five million. As consumers we are spoilt for choice as those brands compete with one another like rival plants on the rainforest floor evolving to grow higher in their pursuit for the most sunlight. Our purchasing decisions are that sunlight and their practices of differentiation to catch our attention are the methods developed to outgrow rivals.

One of those key differentiators is marketing strategy, serving as the bridge between a business and its customers, helping to communicate the value of its products and services. For many businesses sport plays a key role in that strategy and has become a dynamic and influential field that has evolved significantly over the years. That field is not immune to ethical dilemmas. The decisions made by businesses and sports marketeers can have a significant impact on society, consumers, and the environment. As a result, it is crucial for marketers to navigate the ethical landscape effectively.

A fundamental element of ethical marketing and sponsorship is the concept of purpose. In recent years, the role of purpose in marketing and sponsorship has gained distinction as businesses seek to align their strategies with broader societal and environmental goals. The data is there to support this. Dentsu Sports Analytics (DSA) data through its 2023 Frontier survey has shown that the Growth of Corporate Social Responsibility as a Sponsorship Objective​ has grown from 22% in 2016 to 47% in 2023.

Without a doubt the industry is integrating purpose into sponsorship, again highlighted in DSA’s Frontier survey with 80% of the industry brands, ​agencies and rights holders now understanding that consumers will seek out brands whose partnerships and events have a deeper societal purpose.​

So how does purpose fit into our industry?

The concept of purpose in sports marketing refers to the integration of social and ethical considerations into the core strategies of sports organizations, athletes, and brands.

While sports marketing has traditionally focused on commercial success, the incorporation of purpose-driven approaches seeks to create a more profound impact on society, inspire positive change, and connect with a broader audience. That audience does not want to just know about product quality or value - they are also increasingly interested in what brands stand for.

Purpose in sports marketing goes beyond simply promoting sporting events or athletes; it encompasses a commitment to broader social and ethical objectives. Organizations and brands can use their influence to promote social responsibility.

However it’s essential to note it’s not just our traditional notion of brands adopting these practices, it’s everyone.

Companies, rights holders and talent, all effectively brands in themselves, understand that supporting charitable causes, raising awareness about social issues, or actively contributing to the betterment of society is a potential route that should not be ignored.

From a talent perspective take Marcus Rashford’s Child Food Poverty Advocacy. Over the COVID-19 pandemic Rashford emerged as a powerful advocate for child food poverty. His campaign to provide free school meals to vulnerable children during the COVID-19 pandemic garnered widespread attention and support. Rashford's advocacy aligns with his values and demonstrated how athletes can use their platforms for social good.

Rights holders have done it too.

Arsenal and Adidas’ ‘No More Red’ campaign is a long term commitment by the club and partner to tackle the root causes of youth violence, and provide safe spaces and more opportunities for young people. Expanded this year it is another key example of how purpose in sports marketing can have a positive impact on the promotion of social responsibility.

Finally, Cadbury has effectively utilized its distinctive role as a partner with numerous football clubs and ambassadors to connect its longstanding principles of generosity and community to back Grenfell Athletic. Operating within the framework of Cadbury’s ‘Club Together’ initiative, the brand brought together 14 of its partnered football clubs to support the West London grassroots team, established in the aftermath of the 2017 Grenfell tragedy. The campaign aimed to foster the club's growth and contribute to the ongoing reconstruction of the local community through the medium of football. The evident harmony in values underscores why certain brands can navigate the purpose-driven landscape with genuine authenticity and credibility.

In recent years, the promotion of inclusivity and diversity has surged in importance for sports. Beyond the inherent moral imperative, a more diverse and inclusive sporting landscape reflects the broader societal shift towards equality and representation.

Purpose-driven sports marketing emphasizes that importance of inclusivity and diversity. By creating campaigns and initiatives that embrace people of all backgrounds, sports organizations can break down barriers and make the world of sports more inclusive.

One of the most prolific examples of this can be found with The Premier League's "No Room for Racism" Campaign. The upper-most echelon of league football in the UK, has been actively promoting inclusivity and diversity through its "No Room for Racism" campaign. This initiative aims to combat racism in football by raising awareness, educating fans, and taking strong action against offenders. The campaign demonstrates the league's commitment to fostering inclusivity and sending a strong message that racism will not be tolerated in football.

Other brands such as Barclays have chosen inclusivity as their purpose. Barclays' strategic investment in the Women's Super League (WSL) underscores the bank’s commitment to advancing gender equality in sports.

Recognizing the growing popularity and immense potential of women's football, Barclays seized the opportunity to align its brand with a progressive and inclusive agenda. By investing in the WSL, Barclays not only supports the development of women's football but also taps into a market that has been historically undervalued.

The partnership goes beyond mere sponsorship, serving as a platform for Barclays to actively promote its commitment to diversity, inclusion, and empowerment. Through various initiatives, such as grassroots programs and community engagement, Barclays leverages the partnership to drive brand consideration by aligning itself with the values of equality and progress.

The strategic investment in the WSL not only bolsters the league but also positions Barclays as a forward-thinking and socially responsible organisation, enhancing its brand reputation and resonance with a diverse and engaged audience.

The integration of environmental sustainability into sports marketing has also gained prominence as the imperative to address climate change becomes increasingly evident. Sports, with its global reach and influence, wields significant power to shape societal attitudes and behaviours. By incorporating environmental sustainability into sports marketing, organizations not only demonstrate corporate responsibility but also contribute to the broader narrative of environmental stewardship.

Consumers, particularly the younger demographic, are becoming more environmentally conscious, and aligning sports with sustainable practices creates a positive brand image and fosters loyalty.

Additionally, by design sporting events often have a substantial ecological footprint, and purpose-driven sports marketing can involve reducing that impact and promoting eco-friendly practices.

For example, Nike and the "Move to Zero" Sustainability Initiatives. While not a traditional sponsorship, Nike's association with various football clubs, including Premier League teams, has evolved to promote its "Move to Zero" sustainability initiatives. Nike uses its partnerships with clubs and athletes to raise awareness about environmental sustainability. This includes initiatives to reduce the environmental impact of sportswear and footwear production, such as using sustainable materials and reducing waste.

Adidas is another apparel brand aligning itself with green initiatives. Adidas ran a UK-specific "Run for the Oceans" campaign to raise awareness about marine plastic pollution and support the efforts of Parley for the Oceans. This campaign encouraged runners in the UK to participate and make a positive environmental impact. Adidas's commitment to sustainability and its efforts to engage consumers in addressing pressing global issues align with their purpose-driven marketing approach.

These examples demonstrate how brands and organizations in the UK are leveraging sports sponsorship to advance social and environmental causes. By aligning their sponsorships with purpose-driven initiatives, they not only enhance their brand image but also contribute to meaningful change in society and promote positive values within the realm of sports.

Sounds ideal right? It almost seems like a home game against a bottom of the league team that brands can’t lose. Some have. Badly. Amidst the pitfalls of navigating the ethical landscape some brands have come under fire for getting it wrong. Consumers aren’t stupid. Far from it. In today’s vociferous environment consumers have a plethora of platforms to call these brands out, and they have.

While the benefits of purpose-driven marketing are evident, there are challenges that businesses may encounter when attempting to implement such strategies.

Is the campaign or initiative authentic? If not, consumers will see through it. Brands must ensure that their commitment to purpose is genuine and not just a marketing gimmick. Sports washing, green washing and virtue signalling are now widely used terms which we have become accustomed to in the industry. Consumers are increasingly sceptical and can spot inauthenticity a mile away.

Sports have long been regarded as a unifying force, transcending borders and bringing people together through the shared joy of competition and athleticism.

However, beneath the surface of this seemingly noble pursuit lies a darker phenomenon.

A prevalent example we’re all familiar with is Qatar's hosting of the 2022 FIFA World Cup. However, sports washing extends beyond nations and into the arena of brands. Corporations often harness the popularity and positive associations of sports to mask less savoury aspects of their operations or to align themselves with values that may not be reflected in their business practices.

Despite my aforementioned positive examples, the sportswear giant, Nike has positioned itself as a frontrunner in leveraging sports for social justice causes but has fallen foul of this criticism. While the company has sponsored high-profile athletes who advocate for various social issues, such as racial equality and sustainability critics argue that Nike's commitment to these causes might be more about marketing than genuine activism. Despite championing social justice in its advertising campaigns, Nike faces accusations of exploiting low-wage workers in its overseas factories. By associating itself with socially conscious athletes and movements, Nike creates a sports-washed image that diverts attention from labor practices that may not align with the progressive values it promotes. An almost perfect example of the difficulties brands have when navigating the ethical landscape of purpose marketing.

In terms of green washing, the oil and gas industry, often criticized for its environmental impact, has not shied away from looking to clean up its image. ExxonMobil, one of the world's largest oil companies, has sponsored major sporting events, including the Olympic Games. This association with sports creates a diversion from the environmental concerns surrounding the fossil fuel industry. Despite the company's marketing efforts to present itself as environmentally conscious, ExxonMobil has faced scrutiny for its contributions to climate change and alleged attempts to undermine climate science. The green-washed image allows ExxonMobil to downplay its role in environmental degradation and portray itself as a responsible corporate citizen. Just the mention of this example in association with green washing highlights that brands cannot hide from the backlash of consumer criticism, and rightly so.

Another example, widely criticised for virtue signalling, can be found with Mastercard’s goal-for-meals" campaign. While aiming to address global hunger by pledging to donate meals for every goal scored in select football tournaments, the brand faced condemnation on several fronts. Critics argued that the campaign might inadvertently glamorize and exploit the seriousness of the issue by linking it to the excitement of scoring goals. Some saw it as a form of virtue signalling, suggesting that the company's commitment to addressing hunger should not be contingent on sporting events. Additionally, concerns were raised about the transparency of the donation process and whether the impact on hunger alleviation would be substantial. Critics emphasized the need for sustained, meaningful efforts to combat hunger rather than relying on sporadic and event-driven initiatives, calling for a more nuanced and comprehensive approach to corporate social responsibility in the fight against global issues like hunger.

Accusations of brands getting it wrong in purpose marketing are common, but when executed correctly, it can lead to significant success. To reap these rewards, brands must carefully consider their approach and assess the risks associated with integrating purpose into their marketing strategy. Key considerations include determining whether the brand has an authentic role to play, evaluating the relevance of the chosen cause to its audience, and identifying the cultural tension it aims to address.

Successful adoption of purpose marketing requires a genuine alignment between the brand's values and the chosen cause, resonating authentically with consumers.

This alignment should extend beyond superficial campaigns, ingraining itself in the company's culture and operations.

Transparency is paramount, as modern consumers value honesty and can distinguish between authentic purpose and mere marketing tactics. Brands must demonstrate a tangible commitment to their chosen cause through actions such as sustainable practices, charitable contributions, or social initiatives.

Active engagement with the community and responsive adaptation to feedback are crucial. Purpose marketing should not be a one-off endeavor but an ongoing commitment that evolves with societal changes. When executed correctly, it can foster customer loyalty, fortify brand identity, and contribute positively to both society and the bottom line.

Navigating the ethical landscape in marketing and sponsorship is a critical endeavour for brands seeking long-term success and societal impact. A purpose-driven approach offers a strategic tactic to aligning a company's values and objectives with broader social and environmental goals. By setting clear ethical standards, fostering transparency and authenticity, and engaging in social responsibility initiatives, companies can create stronger bonds with customers and other stakeholders.

While challenges exist, the benefits of purpose-driven marketing are evident. Customer loyalty and trust, competitive advantage, employee engagement, and long-term sustainability all contribute to a company's overall success. In a world where ethical considerations are becoming increasingly important to consumers, businesses that embrace purpose in marketing are well-positioned to thrive in the evolving ethical landscape.

As the business world continues to evolve, the role of purpose is likely to gain even more significance. Companies that recognize the importance of aligning their actions with their stated values are not only better equipped to navigate ethical challenges but also to thrive in an increasingly conscious and interconnected global marketplace.