Sponsorship and marketing

Not a level playing field
CONTENTS

Chapter 4

Sponsorship and marketing

Sponsorship defined as the negotiated provision of funds, goods or services to schools in exchange for advertising, publicity or other benefits has emerged only within the last decade. While it has thus far accounted for only small proportion of the total funds raised privately by schools, there has `recently ... been a marked increase in sponsorship activity, particularly by national and multinational organisations'. [1] If government funding for schools continues to fall short of what is needed, it will become an increasingly important funding source, particularly if recent developments in New South Wales and Victoria are any guide.

For example, radical reforms proposed recently by the Victorian Government to free schools from bureaucratic controls include the urging of big corporations to support educational programs through sponsorship. Such proposals, and the announcement of major corporate sponsorship activity in the NSW Government school system, School Sports 2000, are sending an unmistakable signal to schools in those States and Territories that sponsorship has the imprimatur of government. These initiatives will also encourage other state school systems to explore sponsorship options.

Most State and Territory Governments have some form of guidelines or a code of ethics which are supposed to guide schools in relation to sponsorship arrangements, but they vary considerably in content and effectiveness.

In Victoria, for instance, which has departmental guidelines for the acceptance of sponsorship, `there are also a huge number of local school arrangements which are difficult to monitor and assess but would undoubtedly range widely along the ethical spectrum'. [2] Decisions about corporate sponsorship are made at the local level, with school councils empowered to accept gifts, and to accept conditional gifts with the approval of the department. The department is developing a policy on advertising in schools. [3]

Western Australia has a draft policy prepared.

In 1991 NSW issued a detailed policy on sponsorship. It requires that sponsorship arrangements be consistent with the values and goals of NSW schools and contribute to students' learning. 1996 saw the development of the School Sport 2000 concept. The School Sport 2000 Foundation is an initiative of the NSW Department of School Education, the Federation of Parents and Citizens Associations of NSW, the NSW Teachers Federation and the Federation of School Community Organisations. Organisations sponsor programs including the NSW School Sport State and Representative Level Sporting Programs, the Active Youth Program, the NSW Special Swimming Scheme and the NSW School Students with Disabilities Program. [4] The NSW Government also issued policy and procedures for joint funding of capital works.

  1. The ACT has a sponsorship policy which requires that:

The Committee received a variety of views on the desirability of sponsorship and the ways in which schools or school systems might manage sponsorship proposals. Comments about sponsorship were often placed explicitly in the context of concerns about the inadequacy of government funds.

Teachers and principals impressed upon the Committee that educational values must remain in the foreground of any discussion about sponsorship. There were problems raised about schools and sponsorship which tended to fall into three general areas:

The issue of sponsorship diverting teacher (and student) time away from educational activities was a common theme in the evidence from teacher organisations. Accordingly to a national survey of secondary school principals, [8] in those schools which actively solicit business support, the main responsibility for this activity lies with school principals and teachers. In cases where businesses approach schools, it is again principals and teachers who are the main targets of these approaches.

The soliciting and negotiating of relationships between schools and businesses makes demands on the time of principals and teachers. Principals constantly make judgments about the amount of time they are willing or able to invest in these ventures, weighing it against the potential educational and financial benefits that their efforts might realise. The view of some is that the level of benefits is not justified by the effort expended.

A school principal appearing before the Committee described what he called a critical lesson in principalship. That was always to put a cost on your own time, to put a cost on your teachers' time, to put a cost on your parents' time in terms of, `Is it contributing to the learning of children?' [10] Principals often utilise not only time during standard school hours, but many evening or weekend hours pursuing sponsorship and other kinds of business support for their schools.

The second broad area of concerns raised in relation to sponsorship was that of the potential conflict of values between the commercial interests of business and the educational interests of schools. The Australian Association of National Advertisers observed in its submission that:

The evidence before the Committee was that most businesses and industries have a genuine desire to contribute to improved educational experiences and outcomes for school students.

Teachers generally regard the involvement of the business community in schools as welcome provided that educational goals and values remain pre-eminent in the arrangement and that schools and students are protected from exploitation. In this regard, the establishment of adequate sponsorship guidelines to facilitate the proper engagement of Government schools and businesses is considered crucial by teachers. This is dealt with later in the report.

Teachers were particularly sensitive to the potential for conflict between the needs and aspirations of schools and sponsors. This is because, in the teachers' view, there has been a shift from `the relatively benign arrangements which existed ...in the past' to a time of `considerable pressure on schools to `sell' themselves to the corporate/business sector and an increase in education-business partnerships and sponsorship deals'. [12] It was also claimed that the pressure to secure private funds interfered with good judgement.

In the Committee's view, it is entirely inappropriate for school councils to have to involve themselves in these kinds of assessments, notwithstanding that they might feel that they have a duty to do so.

Of more immediate concern are the implications of certain kinds of fundraising for the protection and wellbeing of students. These include:

The sponsorship issue which was most frequently raised in evidence was that of equity. Some arrangements which exist between companies and individual schools bestow a significant advantage upon these schools relative to other schools in the system. This serves to exacerbate any disparities which already exist between schools in affluent and poorer suburbs, or between metropolitan and rural schools. The whole issue of equity arising from private and commercial funding of schools is dealt with in a separate chapter of this report.

The Committee accepts that school communities wish to raise modest funds for their schools. However, from the evidence before the Committee, communities are becoming increasingly resentful of the extent to which they are required indeed pressured to raise funds at levels beyond that which they consider reasonable. The Committee has no wish to hinder the establishment of small-scale, productive local arrangements between schools and businesses. But recent initiatives and proposals regarding corporate sponsorship take the matter into an altogether new league. The Committee is extremely concerned about a developing reliance on the corporate dollar to meet an increasing proportion of core school operating costs, as well as the acceptance of dubious sponsorships.

In response to these developments, most group swhile in principle opposed to a growth of sponsorship in schools have proposed the clear articulation of guidelines within which that sponsorship should evolve. The Council of Education Ministers, in 1993, produced a set of sponsorship guidelines. These are attached at appendix A. These guidelines are not in themselves sufficient to constitute a formal code of practice, but provide a broad indication of the kinds of issues that should be articulated in more detail in States' sponsorship codes.

As stated earlier, there appears to be considerable diversity across States as to the level of formality and degree of specification with which education authorities provide guidance to schools. Some state Governments have formulated explicit policies regarding sponsorship. Others have simply expressed their expectation that schools will abide by the 1993 Code of Practice developed by the Ministerial Council.

The Committee received evidence claiming that the national code is inadequate, largely because in guidelines are too broad. Other criticisms went to the failure of state Governments even those who have developed their own sponsorship policies to establish appropriate mechanisms for monitoring the adherence of schools to either the state policy or the national code.

Given the current attempts to encourage sponsorship of Government schools it is in the interest of both schools and business for state governments to have in place comprehensive and clearly articulated policies and codes of practice about sponsorship and other school/ business financial arrangements. The development of such codes of practice must involve all relevant parties: parents, teachers, students, principals, and business organisations. There is a reasonable sample of codes of practice already in existence or in draft form upon which such groups could draw.

The Committee acknowledges that there are some excellent examples of arrangements which are of enormous benefit to individual schools. For example, in South Australia an agreement between Salisbury High School, and British Aerospace Australia guarantees an income to the school of $10,000. [15] Through this venture the high school integrates workplace learning into the education program `so that the education offering is more real and is more attractive to young people and connects them directly to the workplace'. [16] The Committee believes that this arrangement's main benefit is the development of the positive relationship between school and the work place and the prospect for the students of job readiness when they leave school. The Committee questions the need for such a good relationship to involve funding.

The Sports 2000 initiative developed in NSW also has significant potential for providing students with additional opportunities and support beyond the sport and physical education offering available in schools.

Sponsorship, if it is to be sought, should be done on the basis that it delivers benefits which are additional to the standard school program, not merely helping to fund the basic curriculum. Moreover, the benefits of any such sponsorship must be equitably distributed amongst all schools. The Committee's difficulty with sponsorship arises when it is something to which schools are compelled to turn in order to deliver the standard curriculum in the eight Key Learning Areas. Such provision is the responsibility of governments, not corporate sponsors.

The Committee RECOMMENDS that all Commonwealth, State and Territory Governments
  1. develop comprehensive guidelines for sponsorship arrangements at both school and state levels
  2. ensure that effective mechanisms are in place to monitor schools' compliance with the sponsorship guidelines
  3. ensure that sponsorship assistance is used to provide additional opportunities for students beyond those provided through the Eight Key Learning Areas.

Recommendation 10

Given the widespread concerns about the severe equity implications of sponsorship, a frequent proposal placed before the Committee was that of a centrally-managed education foundation. NSW has recently established a sponsorship arrangement of this type. In essence, such a foundation would provide both a focus and opportunity for corporate contributions to education, and for appropriate recognition by government and the community at large of those firms who so contribute. A key attraction of such an approach is that it facilitates a more equitable distribution of corporate support across all schools, rather than a favoured few, and affords an appropriate level of protection to schools by virtue of an `arm's length' relationship between the sponsor and the beneficiary.

The Committee endorsing a centralised approach to ensuring equitable distribution of funds and notes that it flies in the face of policy which devolves to the school level the responsibility for securing adequate funds. Governments are beginning to realise that it is only possible for an education system to achieve equity goals through a centralised approach. In the Committee's view this is illustrative of much of the incoherence that plagues existing policy on devolution of authority to schools.

A state controlled education foundation need not be the repository for all contributions to schools from firms and businesses. Relatively small scale, local arrangements should not be affected by such a scheme. However, the involvement in education of corporations with statewide, national or international operations should be structured so that any benefits flowed equitably to schools across the state, or across the nation where appropriate.

The Committee RECOMMENDS that State and Territory Governments which seek to supplement government funding to schools via sponsorship establish a centrally-managed Education Foundation for the negotiation of sponsorship deals, and for the equitable distribution across all government schools of any benefits which result.

Recommendation 11

Other marketing arrangements involving schools

The Committee had its attention drawn to a range of activities whereby schools sought to exploit their available resources to generate private income. The Committee found some strategies particularly disturbing, for example, the use of school land for commercial purposes.

The Committee understands that the practice of using school land to erect mobile phone towers occurs in states other than South Australia. The sale or lease of school land for commercial purposes is regulated in various ways in the different states. Western Australia has recently released for public comment guidelines about local area education planning. These include provision for schools to negotiate, through a formal community consultation process, the excision of excess land for sale.

The sale of school land may prove problematic in later years if changes occur in the activities conducted on the land by its new owners, or if subsequent resale takes place. For example, an analogous situation brought to the Committee's attention concerned the involvement of a school with a social club, which was initially thought to be satisfactory:

As well as social consequences, there are significant equity considerations with the sale or rental of school land. The Committee recommends that the State and Territory Governments reappraise these practices with a view to enabling any decisions and any benefits to be state wide.

The Committee RECOMMENDS that the Commonwealth Government require the State and Territory Governments to review practices involving the sale or rental of school land with a view to enabling any decisions and any benefits to be state wide.

Recommendation 12

The Committee reiterates its view that the many existing and potential difficulties associated with schools' involvement in sponsorship and marketing only arise because governments do not provide adequate funds in the first place. A school's fundamental role is to educate students, and this should not be compromised by the need to engage in commercial market activity for fundraising purposes in order to deliver a standard education across the eight key learning areas.

Giving schools the right to borrow

Giving schools the right to borrow has emerged as a possible further `fundraising' option for schools in Victoria. The Victorian Minister for Education, Mr Gude, recently indicated thatdepending upon reports of the Schools of the Third Millennium working groupsthe government may consider granting schools the right to borrow funds for expansion.

Although the Committee received no direct evidence on this point, it believes it is appropriate to make some comments about the right to borrow in the context of similar concerns raised with the Committee about other aspects of commercial fundraising. Many of the concerns which apply to other fundraising and sponsorship ventures also apply to the borrowing of funds. The Committee believes the major risk with granting a right to borrow is its potential to extend the divide between bigger schools in wealthier areas and smaller schools, rural schools or schools in disadvantaged suburbs. While there may be benefits in such an approach, the Committee believes it is symptomatic of the erosion of government commitment to the provision of free education previously discussed in Chapter 2. Unless governments are prepared to step in with additional resources for those schools which cannot borrow sufficient funds, small and disadvantaged schools are likely to fall further behind in terms of resources, with all the equity and quality of education implications that entails.

The Committee is also concerned about the legal and financial implications of one school council entering into a contract to borrow funds, leaving subsequent school councils to deal with the debt. The Committee believes the Commonwealth Government should closely monitor the Schools of the Third Millennium process in Victoria and involve itself in any subsequent discussions about removing restrictions on schools' ability to borrow funds.

 

Footnotes

[1] Vardon, Cheryl (Director General, Education Dept of WA). Foreword of Interim Sponsorship and Promotion Policy 1997

[2] Submission no 21, vol 1, p 156 (Australian Education Union (AEU))

[3] Communication from Mr J Livi, Department of Education Legal Services Unit, 28 July 1996

[4] Submission no 49, vol 4, pp 69-80 (NSW Government)

[5] Submission no 58, vol 4, pp196-207 (ACT Government)

[6] Submission no 33, vol 2, p 79 (South Australian Association of School Parents Clubs)

[7] Submission no 37, vol 2, p 173 (Victorian Federation of State School Parents Clubs)

[8] Submission no 46, vol 3, pp 138206 (Mr Jeremy Moon and Mr Richard Sochaski). Includes preliminary analysis of a sample of 490 schools.

[9] Submission no 1, vol 1, p 4 (Mr Spinks, The Sheffield School)

[10] Transcript of evidence, Hobart, 2 September 1996, p 210 (Mr Spinks, The Sheffield School)

[11] Submission no 40, vol 3, p 108 (Australian Association of National Advertisers)

[12] Submission no 38, vol 3, p 29 (SA Institute of Teachers (SAIT))

[13] Submission no 38, vol 3, p 27 (SAIT)

[14] Submission no 21, vol 1, p 153 (Australian Education Union (AEU))

[15] Submission no 38, vol 3, p 31 (SAIT)

[16] Transcript of evidence, Adelaide, 31 January 1997, p 555 (Mr Turner, Salisbury High School)

[17] Transcript of evidence, Adelaide, 31 January 1997, p 583 (Ms Pickles, MLC SA)

[18] Media statement, Western Australian Government, 28 May 1997

[19] Transcript of evidence, Melbourne, 3 September 1996, p 267 (Mr Burns, Footscray Primary School Council)