Reference no: EM131882105

Problem: Management Team Decision

Sponsorship or Sellout In the world of charitable organizations, the most grueling activity must certainly be fund-raising.125 Although soliciting donations for popular causes can be easy, lesser-known nonprofi ts, which do very important work, may have diffi culty consistently raising enough money to function. Sometimes, corporate sponsorship is necessary to obtain adequate funding. The obvious plus to corporate sponsorship is the cash, and perhaps greater visibility and legitimacy in the community (depending, of course, on the reputation of the sponsor). But corporate sponsorship can also have drawbacks. Potential donors may think that the charity no longer needs additional funding or withdraw support because they perceive that the charity has "sold out" to corporate fi nancial inducements. In considering a possible sponsorship, managers of charitable organizations can fi nd themselves facing an ethical dilemma. Consider the following situation: A health-care foundation that is putting on a benefi t concert to raise money to fund research on respiratory diseases signs up a popular regional band. Unable to cover the costs for the band, concert hall, decorations, and publicity, the foundation entertains an offer from operators of a new and controversial waste incineration plant, who are willing to put up $50,000 to become sponsors of the event.

Such situations are all too common in the world of nonprofit fund-raising, and getting these decisions right can often mean the difference between success and failure. To execute this management team decision, you will need to assemble a team of four to five students. Your management team will be working with the following scenario. Women Against Violence (WAV) is a prominent local charity focused on providing victims of domestic violence with temporary housing, helping them cope with stress, and, in some cases, helping them begin a new life. During the 1990s, your management team was able to lift the fund-raising for WAV to all-time highs. Now, however, tight economic conditions have dried up donations. As WAV's management team is meeting to determine how and when to shut down operations, you receive a call from a local company, Famous Brewery and Bottling Company. Famous not only has its own brewery and specialty beers but also bottles and distributes beer for larger, nationally known beer brands.

Famous is a progressive company and almost half its top management team comprised of women. But you also know that alcohol is involved in many domestic abuse situations. You put the representative from Famous on speakerphone so the entire team can hear her. She proposes that Famous sponsor a spring festival to raise money for WAV. Famous will give WAV $40,000 to organize the festival (for advertising, tent and game rentals, concession stands, and so on), and WAV will receive all of the proceeds from the festival. In return, Famous wants to set up a booth at the festival and have its name and logo next to WAV's on any promotional materials, such as flyers, banners, and buttons. You thank the representative and turn off the phone. Turning to your team, you say, "So, do we take the money or not?" You will be making a decision for or against corporate sponsorship for WAV by Famous Brewery and Bottling Company. Before beginning the exercise.

Questions

1. Rank the ethical intensity of the decision. Consider assigning a numerical value to each of the six factors listed on page 150, on a scale of, say, 1 to 5. Add the six values together and assess the sum against a possible 30 points.

2. As a team, examine the situation through the lens of each of the principles of ethical decision making. What is your final decision?

3. What role did the ethical intensity of the decision play in your ultimate decision?