Racing Towards Sustainability? Formula 1 and Corporate Social Responsibility

Page 1: Title Page

• Title: Racing Towards Sustainability? Formula 1 and Corporate Social Responsibility

• Author: Olav André Karlsen

• Degree: Master of Science in Globalization

• Location: Trondheim, February 2011

Page 2: Acknowledgements

• Thanks to Professor Indra De Soysa for guidance.

• Acknowledgments for family and friends' support.

• Special mention to the fireman who rescued crucial materials.

Page 3: Table of Contents

1. Introduction

   • The Global Compact

   • Thesis Purpose and Rationale

   • Thesis Outline

2. Corporate Social Responsibility (CSR)

   • The discourse of CSR

   • Critical Approaches to CSR

   • The Sethi Monitor

3. The Fast-Paced World of Formula 1

   • Origins and evolutions

   • Formula 1 as a business

   • Sponsorships

4. Methodology and Data

5. Analysis and Discussion

6. Concluding Comments

Page 4: Table of Contents Continued

• List of Tables and Figures

• List of Abbreviations

• Detailed sub-sections under major chapters listed.

Page 5: List of Tables

• Tables covering financial data related to F1, budgetary allocations, and sponsorships across years.

Page 6: List of Abbreviations

• CSR: Corporate Social Responsibility

• FIA: Fédération Internationale de l'Automobile

• FOM: Formula One Management

Page 7: Introduction

• Globalization Debate: Focus on MNC impacts on social outcomes.

• Differing perspectives:

  • Liberal view: MNCs improve economies.

  • Critics: MNCs are exploitative, causing inequality.

  • Emergence of CSR as a response.

Page 8: The Global Compact

• Established by UN Secretary-General Kofi Annan in 2003.

• Aims to align business practices with universal principles.

• Criticisms regarding effectiveness and thoroughness of compliance.

Page 9: Thesis Purpose and Rationale

• Study the CSR impacts within Formula 1.

• Analyze F1's brand conduct towards social accountability.

• Investigate CSR strategies in high-profile sports.

Page 10: Thesis Outline

• Focuses on definitions of CSR and its critical approaches.

• Analyses F1’s business evolution and sponsorship impacts.

Page 11: Data Collection and Depth

• Discussion on the duality between business practices and CSR in F1.

• Overview of CSR-related initiatives across F1’s landscape.

Page 12: CSR in F1

• Key Research Question: How does F1 embody CSR principles?

• Impact and scrutiny of CSR on MNCs in F1.

Page 13: The Discourse of CSR

• Examination of CSR's multifaceted definitions.

• Needs rigorous evaluation of CSR application.

Page 14: Approaches to CSR

• Various theoretical frameworks underpinning CSR.

• Company strategies towards CSR through marketing and philanthropy.

Page 15: Voluntary CSR Codes

• Discussion around corporate self-regulation and its challenges.

Page 16: The Triple Bottom Line Approach

• Focus on economic, social, and environmental performances.

• Importance of accountability to various stakeholders.

Page 17: Stakeholder Theory

• Companies engage with multiple stakeholder groups.

• Stakeholder management is a critical part of CSR.

Page 18: Critical Approaches to CSR

• CSR can be insincere; driven by profit motives.

Page 19: CSR and Public Relations

• CSR viewed as a PR tool rather than genuine accountability.

Page 20: Intellectual Crisis in CSR Discourse

• Criticism of CSR's effectiveness amid financial crises.

Page 21: The Sethi Monitor

• Proposal for standardizing CSR evaluation.

• Calls for accountability in MNCs’ CSR actions.

Page 22: Formula 1's Business Evolution

• F1 as a global sport with extensive economic implications.

Page 23: Origins of Formula 1

• Historical development from local racing to a global event.

Page 24: F1 Business Transformation

• Shift from traditional sports to commercial enterprises.

Page 25: Technological Innovations

• Role of ongoing technological advancement in F1 practices.

Page 26: Team Structure and Management

• Bernie Ecclestone’s influence on F1's business side.

Page 27: The Role of Sponsors

• Sponsorship has become critical for financial viability.

Page 28: Global Sponsorship Trends in F1

• Evolution of sponsor relationships and their strategic importance.

Page 29: Marketing Leverage through F1

• F1 provides unique marketing opportunities for sponsors.

Page 30: Expansion of F1 to New Markets

• Sustainability and corporate interests in globalization.

Page 31: Continuous Shift of F1’s Demographics

• Importance of diversifying race locations globally.

Page 32: Environmental Image of F1

• Environmental concerns overshadow substantial income benefits.

Page 33: Public Perception of F1's Image

• Controversies relating to environmental impacts of F1.

Page 34: F1 Economic Impact Analysis

• Financial implications for host countries and local economies.

Page 35: Evaluating F1’s Sustainability Efforts

• Honda's Earth Car initiative as an example of CSR efforts.

Page 36: Financial Strains and Sustainability

• Economic challenges facing F1 teams amid rising costs.

Page 37: Ticket and Economic Viability of Events

• Rising ticket prices affecting audience attendance metrics.

Page 38: Future of Sustainable Practices in F1

• Focus on energy efficiency and new engine technologies.

Page 39: Importance of Methodology

• Discuss the significance of the methods in conducting research.

Page 40: Case Study Rationale

• Justification for selecting F1 as a case study for CSR analysis.

Page 41: FIA's Governance Role

• FIA's influence and initiatives in promoting responsible practices.

Page 42: FIA Revenue and Expenditures

• Budget breakdown and discussion of financial responsibilities.

Page 43: FIA's Community Engagement

• Initiatives aimed at reducing vehicle emissions.

Page 44: Formula One Management Overview

• FOM's role in the F1 business structure and revenue generation.

Page 45: Revenue Streams in F1

• Analysis of different income sources within FOM.

Page 46: Vodafone McLaren Mercedes Case Study

• Financial overview of McLaren's revenue and expenditures.

Page 47: CSR Strategy among Teams

• Overview of McLaren's CSR policies and environmental impact focus.

Page 48: Philanthropic Endeavors

• Support strategies and community engagement by McLaren.

Page 49: Community Engagement in F1

• Examination of social responsibility within team sponsorship.

Page 50: Sustainability Measures by Teams

• Environmental initiatives in racing operations and facilities.

Page 51: Albert Park Case Study

• Economic evaluation of the Australian Grand Prix.

Page 52: Discrepancies in Economic Reports

• Examination of varying reports assessing the GP's economic impact.

Page 53: Visitor Figures and Economic Outcomes

• Attendance metrics and their implications on the local economy.

Page 54: Additional Value of Hosting F1

• Evaluation of perceived benefits versus actual costs in hosting.

Page 55: F1's Business and Social Responsibilities

• Examination of F1's broader impacts and accountability.

Page 56: Conclusion

• Summary of findings regarding F1’s CSR practices and need for further research.

Page 57: Recommendations for Future Studies

• Suggestions for more thorough CSR analysis within sports.

Page 58: Closing Thoughts

• Questions raised about CSR application in sports.

Page 59: Reflection on F1's Role

• Insights on F1’s global corporate responsibilities.

Page 60: Final Analysis of F1's CSR Ethos

• Overall evaluation of F1 and its commitment to corporate accountability.

Page 61: Literature

• A comprehensive list of sources referenced throughout the thesis.