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Why Do Companies Sponsor Arts Events? Some Evidence and a Proposed Classification

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  • John O'Hagan
  • Denice Harvey

Abstract

Corporate philanthropy towards the arts isof long standing in the United States. There is nosuch tradition in Europe, but corporate sponsorship ofthe arts has been in place since the 1960s (seeFrémion, 1994). This paper will discuss thedifferences and similarities between these two formsof business support to the arts and then concentrateprimarily on corporate sponsorship. The motivationsfor companies to sponsor arts events are examined inthe context both of the literature relating to themotivations for corporate philanthropy and corporatepromotional/marketing expenditure. Results from asurvey of 69 companies that had sponsored 129 artsevents in Ireland are presented and compared to thelimited results from similar surveys elsewhere. Itis suggested that the motivations for such sponsorshipcan usefully be reduced to four: promotion ofimage/name, supply-chain cohesion, rent-seeking andnon-monetary benefit to managers/owners. The evidence for this from the survey, either directly available orimplicit in the responses to some other questions, issignificant. Copyright Kluwer Academic Publishers 2000

Suggested Citation

  • John O'Hagan & Denice Harvey, 2000. "Why Do Companies Sponsor Arts Events? Some Evidence and a Proposed Classification," Journal of Cultural Economics, Springer;The Association for Cultural Economics International, vol. 24(3), pages 205-224, August.
    • Handle: RePEc:kap:jculte:v:24:y:2000:i:3:p:205-224
    DOI: 10.1023/A:1007653328733
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    Citations

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    Cited by:

    1. Björn Frank & Kurt Geppert, 2002. "Corporate Donations to the Arts: Philanthropy or Advertising?," Discussion Papers of DIW Berlin 307, DIW Berlin, German Institute for Economic Research.
    2. Justin Tan & Yuejun Tang, 2016. "Donate Money, but Whose? An Empirical Study of Ultimate Control Rights, Agency Problems, and Corporate Philanthropy in China," Journal of Business Ethics, Springer, vol. 134(4), pages 593-610, April.
    3. Hou, Deshuai & Meng, Qingbin & Zhang, Kai & Chan, Kam C., 2019. "Motives for corporate philanthropy propensity: Does short selling matter?," International Review of Economics & Finance, Elsevier, vol. 63(C), pages 24-36.
    4. Iordanis Kotzaivazoglou & Garyfallos Fragidis & Eugenia Papaioannou & Costas Assimakopoulos & Ioannis Nanos & Nektaria Astrini, 2023. "Supporting Culture to Improve Corporate Image: The Case of Greek Banks," Sustainability, MDPI, vol. 15(5), pages 1-16, February.
    5. Björn Frank & Kurt Geppert, 2004. "Are Small Recipients Overlooked by Sponsors? An Empirical Note," Journal of Cultural Economics, Springer;The Association for Cultural Economics International, vol. 28(2), pages 143-156, May.
    6. John O'Hagan & Clare McAndrew, 2000. "'Protecting' the National Artistic Patrimony; An Economics Perspective," Trinity Economics Papers 20007, Trinity College Dublin, Department of Economics.
    7. Arthur Gautier & Anne-Claire Pache, 2015. "Research on Corporate Philanthropy: A Review and Assessment," Journal of Business Ethics, Springer, vol. 126(3), pages 343-369, February.
    8. Yijing Wang & Kaspar-Pascal Holznagel, 2021. "Evolving Cross-Sector Collaboration in the Arts and Culture Sector: From Sponsorship to Partnership," Corporate Reputation Review, Palgrave Macmillan, vol. 24(2), pages 95-104, May.
    9. Ailian Gan, 2006. "The Impact of Public Scrutiny on Corporate Philanthropy," Journal of Business Ethics, Springer, vol. 69(3), pages 217-236, December.
    10. Christian Peukert, 2019. "The next wave of digital technological change and the cultural industries," Journal of Cultural Economics, Springer;The Association for Cultural Economics International, vol. 43(2), pages 189-210, June.
    11. Gianecchini, Martina, 2020. "Strategies and determinants of corporate support to the arts: Insights from the Italian context," European Management Journal, Elsevier, vol. 38(2), pages 308-318.
    12. Scherer, F. M., 2007. "Corporate Structure and the Financial Support of U.S. Symphony Orchestras," Working Paper Series rwp07-002, Harvard University, John F. Kennedy School of Government.
    13. Luigi Dolores & Maria Macchiaroli & Gianluigi De Mare, 2020. "A Dynamic Model for the Financial Sustainability of the Restoration Sponsorship," Sustainability, MDPI, vol. 12(4), pages 1-27, February.
    14. Bennett, Roger & Sargeant, Adrian, 2005. "The nonprofit marketing landscape: guest editors' introduction to a special section," Journal of Business Research, Elsevier, vol. 58(6), pages 797-805, June.
    15. Campa, Domenico & Zijlmans, Evy Wilhelmina Anna, 2019. "Corporate social responsibility recognition and support for the arts: Evidence from European financial institutions," European Management Journal, Elsevier, vol. 37(6), pages 818-827.
    16. Julia Hiscock & David E. Hojman, 2004. "Where Have All the Flowers Gone? Coase Theorem Failures in English Summer Cultural Events: The Case of Sidmouth International Festival," Working Papers 200406, University of Liverpool, Department of Economics.
    17. Hojman, David E. & Hiscock, Julia, 2010. "Interpreting suboptimal business outcomes in light of the Coase Theorem: Lessons from Sidmouth International Festival," Tourism Management, Elsevier, vol. 31(2), pages 240-249.

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