Hearts & Minds: Trying to avoid the own goals in Corporate Sponsorships

Once, corporate sponsorship was fairly straightforward. The CEO approved the spend and that was it - there was nothing to detain them or the marketing and communications team again. Occasionally, there might be a background check on the event or team or individual that was being backed. But that was usually it. 

Sometimes, the deal might subsequently prove awkward - several companies dropped Tiger Woods for instance after news broke of his extra-marital affairs. Even then, the corporate was in control of the decision and narrative.

Now, though, brands are finding themselves caught in the crosshairs, accused of using their sponsorship to cynically ‘wash’ their reputations. What may have started out as an innocent marketing play, in which they genuinely thought they were doing a favour or they were backing someone or something they really believed in, can turn nasty.

We saw it with boycotts of book festivals last summer over their choice of corporate funders. High-profile individuals stayed away.

We’re seeing it again, albeit moving up a notch, with the decision by 100 well-known women footballers to call on FIFA to drop its major Saudi corporate sponsor on environmental and humanitarian grounds.

A sport that was only too pleased to receive such generosity, and a brand that was happy to be associated with the sport are under joint attack. What was intended as a smooth piece of promotion has become a reputational nightmare.

How to avoid a recurrence? First, you must these days do a complete check of whatever it is you’re thinking of supporting. Do your homework. Why are they so keen to get your money. Is it because no one else would touch them for fear of controversy?

Make sure you have a close connection. Nothing arouses suspicion more than a corporate from a most unlikely quarter appearing alongside as a sponsor. It does not stack up, it’s hard to see how the tie-in relates to their profile, to their customers or clients. The lack of proximity of values and interests means explaining why you’re doing it could be problematic and simply not believed.

Does it really make obvious sense for you to be so involved? Or, could it be seen as suggesting an ulterior motive? In which case, don’t go there. The finger-pointers on social media will go into overdrive and it only takes a bit of their mud to stick, and you’re immersed in a full-scale row.

Ask yourself, do we really need this? If the answer is no, then regard it as a crisis avoided rather than an opportunity lost.

Chris Blackhurst is one of the UK’s foremost business journalists. He was previously Editor of The Independent and City Editor of the Evening Standard.