Understanding and improving social impact

Sport has the power to change the world. Its benefits extend across and between our communities. The social considerations of ESG cover a range of factors which are both internal and external to an organisation. Find out more.

Category
Environmental, Social and Governance

Sport is a powerful collective human pursuit. The purpose and mission of many sports organisations will relate to their sport’s social benefits and capacity for community building. Sport can be used for a range of socio-economic, health and wellbeing, educational and integration outcomes. It can bring communities together and support social cohesion and inclusion. Sport’s influence can operate at the most local of levels or nationally and globally.

For some sectors, the S of ESG has been in some ways the most problematic. By comparison, the sports sector has something of an advantage because of its community impact and delivery across different parts of society. Like other social purpose organisations, such as charities, it can be argued that sport has been thinking about the S of ESG for a long time.

Sport has the power to change the world. Its social benefits are well-studied and understood and include:

Sport and physical activity’s positive relationship with physical and mental health

Reduction of health-related expenditure per capita

Improvement of transferrable cognitive skills and life skills in young people

Improved social skills, self-esteem and self-empowerment when sufficient conditions are in place

When combined with improved environmental factors and support mechanisms, sport can play a role in reduced crime and anti-social behaviour

Improved community cohesion and a sense of community network

Through the community, volunteering and coaching, there exist viable pathways to learn skills beyond playing or taking part and maintain a longer term role within a group which can benefit both the group and the individual

Economic benefits of sport including employment, investment and consumer spending

Use of sport as a story-telling platform for positive influence with its wide, devoted audience

There are of course potential negative social effects:

A sense of social exclusion to those who are willing but unable to participate

Poor support mechanisms and environmental factors potentially reversing many of the benefits

Sporting organisations taking advantage of a captive audience to profiteer or spread negative influences through sponsors or owner interest

Risks around safeguarding and welfare, particularly where policies or organisational culture are lacking

A lack of diversity and underrepresentation, or cultures which are not inclusive

The list of factors which fall into the ‘social’ category offered above indicates the range of considerations that organisations might wish to take into account beyond the social and community benefits of sporting activities. Some of these cut across multiple parts of the organisation, from HR and finance to coaching and events planning. It is essential, therefore, that social considerations are embedded into the overall strategic plan and that appropriate and effective means are used to maintain oversight and inter-departmental cooperation.

Sport also has a public face – and with it, an important ability to shape and change public perceptions, particularly through its communications and media presence. Internationally, sport attracts more than a billion fans and players. This represents a huge voice – and a huge amount of support which can be mobilised for good.

Some of the key social issues which sport organisations and associations may look to address include:

Equity, Diversity & Inclusion

Having EDI policies in place, and ensuring these are up-to-date and communicated throughout the organisation, is important. These may also include fair pay policies, or the reporting of gender and ethnic pay gaps amongst employees. Equally important is creating an organisational culture which is genuinely inclusive and in which each person can feel that their contribution counts.

The requirements contained within the Code for Sports Governance offer useful pointers on how to create an organisational environment that is diverse, welcoming and inclusive. From the composition of the board to the diversity among staff, volunteers, athletes and participants, your organisation should be one in which everyone feels that they belong, are valued and in which they can be their authentic selves.

Organisations in receipt of significant funding from Sport England and/or UK Sport, must have a detailed and ambitious plan to increase the level of diversity and inclusion not only on their boards, but also on their senior leadership teams and across their organisation and structures (Requirement 2.1). The plan and progress made against it should be reviewed and updated at least annually and made public (Requirements 2.2-2.3)

The guidance on creating People Plans can be used to help better understand your staff and volunteers and to really get to know the communities with which your organisation engages. It defines people planning as:

“essential to ensuring the work of the organisation is delivered, supported, and led by a diverse range of people who are equipped and supported to meet the demands of their role and the changing needs of the people, communities, teams and athletes they interact with.”

People Plans guidance

For more ideas, check out these EDI strategies and initiatives:

Safeguarding

Safeguarding is an absolutely crucial responsibility of all sports organisations – and it touches on every element of what they do. Everyone has a right to enjoy sport, free from all forms of harm, abuse or exploitation. Organisations must ensure that appropriate policies and processes are in place, due diligence checks are performed, and that staff and volunteers are appropriately briefed and trained on safeguarding issues.

Whistleblowing

Whistleblowers can act as an early warning system for unethical or illegal behaviour. They might raise a concern about fraudulent or criminal behaviour, danger or serious risks to participants or the public. Reporting channels and whistleblowing policies need to be carefully considered to ensure compliance and to protect whistleblowers.

Useful links for more on whistleblowing:

Some examples of whistleblowing policies and procedures:

Wellbeing, both physical and mental

Sport has a huge role to play in supporting participants’ physical and mental wellbeing. For these benefits to be felt by as many people as possible, participation should be made as inclusive as possible.

Health & safety

Organisations need to comply with relevant regulations around health & safety, and ensure that risk assessments are carried out appropriately in order to protect employees, volunteers, athletes, participants and fans.

One of the primary responsibilities for any organisation is the safety and wellbeing of all those who come into contact with it. When things go wrong, there can be severe consequences. Sport has witnessed a number of safeguarding and welfare concerns – some of which have been very public, and many more of which have never reached the newspapers. The cost to all concerned has the potential to be extremely high. A failure to act when such concerns are raised – through both internal channels and through whistleblowing – can have highly damaging repercussions not only for an organisation’s legitimacy, but even more pertinently for the individuals who are caught up in such events or behaviour. Conversely, managing these issues effectively can have positive impacts on an organisation’s brand, and reputation amongst participants, fans, partners and funders.

The Code for Sports Governance places a requirement on organisations funded at Tier 3 level by Sport England and/or UK Sport to appoint a lead director with responsibility for welfare and safety.

While not all organisations may be under an explicit obligation to take this step, it might be appropriate to consider making such an appointment as part of considering how to ensure the Board takes account of the welfare and safety of all those who come into contact with the organisation.

Lead directors welfare & safety - guidance

CIMSPA’s Workforce Governance and Registration Scheme project is a sector-wide piece of work with the objective of supporting, safeguarding and regulating the workforce to allow everyone taking part in sport and physical activity to enjoy safe and high-quality experiences, and to be supported in achieving their goals in a positive environment.

CIMSPA & workforce governance

Procurement

The supply chains which organisations use to source their equipment and kit – or any products and services – can have significant social impacts, particularly around forced labour, modern slavery and human rights violations. Organisations can seek out ethical suppliers and include social clauses in their procurement contracts. These may focus on human rights, or fair work practices, for example.

Ensuring your supply chains are ethical in terms of human rights and the environment is of enormous importance, reputationally and as a moral imperative.

An ethical supply chain can deliver a number of benefits, including: customer/participant loyalty, talent acquisition and retention, compliance with legal and regulatory obligations, reputation management, risk mitigation and cost savings.

Typical factors which need to be considered include:

eliminating modern slavery and forced labour
addressing negative human rights issues
embedding and supporting environmental and sustainability awareness
developing ethical sourcing and sustainable procurement
ensuring safe working conditions
ensuring fair pay and working hours
tackling corruption and addressing anti-bribery issues

Questions to ask

Which legislation applies to us?
How do we proactively manage potential and actual adverse human rights and environmental impacts within our supply chain?
How do we identify trustworthy suppliers?
What is our due diligence process to ensure ethical procurement?
Have we conducted a gap analysis on our existing procurement policies?
Who is responsible for ensuring compliance with these policies?
Do we have a prepared response - to remedy and mitigate negative impacts - should issues arise within our supply chain?
Do we communicate to stakeholders our due diligence efforts?
Do we provide training for employees and volunteers on human rights and environmental issues?

A clause which commits a contractor to developing a human rights policy might look like:

The development of a Human Rights policy in relation to work carried out on this contract. Within 60 days of contract commencement, Contractors must provide a copy of this Human Rights policy, and the processes they have in place which demonstrate that their activities in relation to this contract show a consideration to human rights. The Client reserves the right to survey workers on workforce matters such as access to terms and conditions; staff policies such as grievance procedures and how payment for services is managed.

(Source: https://buysocialni.org/app/uploads/2020/02/Buy-Social-Toolkit-Services-and-ICT-2020.pdf)

A clause for inclusion in contracts which commits a contractor to providing assurance regarding tackling modern slavery might look like:

The [Contractor] warrants that s/he is compliant with the Modern Slavery Act 2015 and that neither s/he, not his/her employees or workers have been convicted of any offence involving slavery and human trafficking nor have been the subject of any investigation or enforcement proceedings regarding any such offence or alleged offence. The [Contractor] warrants that s/he will use his/her best endeavours to obtain the same confirmation from its sub-contractors and to ensure that its supply chains are slavery and human trafficking free. In the event that the [Contractor] becomes aware of any actual or suspected offence of slavery or trafficking s/he will inform [The Organisation] immediately and [The Organisation] reserves the right to terminate this agreement.”^*

* This does not constitute legal advice and organisations should consult their legal team or legal advisors before use.

Community projects and partnerships

When managed effectively, these partnerships can have a significant positive impact on local communities.

Ethics and culture

Increasingly, stakeholders have high expectations of sports organisations and expect ethical and open behaviour, along with values and standards of behaviour that align with their own. This is set at the top, with one of the key duties of the board being to establish the values of the organisation and a culture which is embedded at all levels and in all activities.

Drivers of change

There are several ‘enablers’ or drivers which can help to accelerate action on social issues. These include

Formulating the organisation’s vision, mission and values – these provide touchpoints around which all activities can be built
Identifying the most ‘material’ or relevant social issues for the organisation
Creating an ESG or social issues strategy, or a strategy that seeks to drive improvement in a defined area, such as EDI
Understanding relevant regulation
Setting appropriate social targets, including around diversity, equity & inclusion
Reporting on progress against these targets
Linking executive pay to performance against these targets
Establishing teams and committees, or appointing positions to lead on this activity.