U1.09 — Methods of Raising Business Public Image (Corporate Sponsorship and Donations)
Overview
Dotpoint 9: Methods of raising business public image
This dotpoint focuses on two common methods of raising a business’s public image:
- Corporate sponsorship
- Donations
Both methods aim to build trust, create positive associations and show that the business is supporting the community. The key difference is whether the business receives agreed promotional benefits in return.
Sponsorship involves an exchange between the business and the organisation being supported, while a donation is primarily about giving without a formal promotional agreement.
Corporate sponsorship
Corporate sponsorship is when a business provides money, products, services or other support to an event, sporting club, organisation or program in return for promotion and exposure.
For example, a business may sponsor a local football club by providing money to help cover costs. In return, the business may have its logo displayed on uniforms, signs, social media posts or at the venue.
This means sponsorship is a two-way arrangement:
- the organisation receives financial or practical support
- the business receives advertising, brand exposure and a positive association with the event or organisation.
Unlike a donation, sponsorship usually involves the business receiving agreed promotional benefits in return.
Why sponsorship can improve public image
- Trust and positive association: the business can benefit from being linked with a well-regarded team, event, venue or community program.
- More awareness: repeated exposure through logos, signage, social media and media coverage can make the business more visible.
- Targets the right audience: sponsorship can help a business reach groups such as families, sports fans, local communities or music audiences.
- Community credibility: supporting public-facing organisations can show that the business contributes to the community.
- Stronger relationships: sponsorship can help build connections with clubs, councils, schools, venues and charities.
WA sponsorship examples
Major stadiums / venue naming rights
- Optus Stadium – Optus secured stadium naming rights, creating a high-visibility public association.
- RAC Arena – RAC renewed naming rights through to 2030.
- HBF Park – the naming-rights partnership was extended through to 2027.
- Revo Fitness Stadium – Claremont Oval is branded through Revo Fitness’s naming-rights partnership with Claremont Football Club.
- Mineral Resources Park – the Lathlain facility used by West Coast and Perth Demons carries Mineral Resources naming rights.
- Steel Blue Oval – Bassendean Oval carries the Steel Blue name through its long-running sponsorship of Swan Districts.
Events
- Chevron City to Surf – Chevron is the naming-rights partner.
- City of Perth Christmas Lights Trail – Rio Tinto committed funding as principal partner.
Sporting teams
- Fremantle Dockers – Woodside: sponsorship creates repeated brand exposure through AFL coverage.
- West Coast Eagles – Hungry Jack’s: sponsorship provides strong brand exposure through the club.
- Perth Wildcats – Rio Tinto: sponsorship provides exposure through jerseys, signage and media coverage.
Example of how to write this in an exam
Corporate sponsorship can improve a business’s public image by creating a positive association with a well-known event, team or venue. For example, a business that sponsors a major WA sporting team may have its logo displayed on uniforms, signage and media coverage. This repeatedly exposes the brand to sports fans and links the business with an organisation that customers already recognise. As a result, sponsorship can increase brand awareness, strengthen community credibility and improve the business’s public image.
Donations
A donation is when a business gives money, products, services or time to a cause or community group without a formal promotional agreement in return.
Unlike sponsorship, the organisation receiving the donation is not formally required to promote the business through naming rights, signage or other agreed marketing benefits.
However, donations can still improve public image because customers, employees and the wider community may notice the support and associate the business with positive community outcomes.
Why donations can improve public image
- Reputation and goodwill: customers may view the business more positively when it supports worthwhile causes.
- Customer loyalty: customers may feel more comfortable supporting a business they see as a good corporate citizen.
- Staff pride: employees may feel proud to work for a business that contributes to the community.
- Community support: donations can strengthen the business’s relationship with the local community, particularly in regional areas.
Real WA donation / community-funding examples
✔ Fortescue – Royal Flying Doctor Service WA: provided about $1.4 million to support emergency and healthcare services across regional WA.
✔ Fortescue – Lifeline WA: provided about $265,000 to support crisis support and suicide prevention services.
✔ RAC – St John WA: supports volunteers who provide emergency and community services across regional and remote WA.
✔ BHP – Port Hedland: announced $160 million for housing, education and community infrastructure, including an $80 million upgrade to Hedland Senior High School.
Example of how to write this in an exam
Donations can improve a business’s public image by creating goodwill in the community. For example, a WA business that provides funding to a community or emergency-service organisation may be viewed as socially responsible because it is supporting an important cause without requiring formal promotional benefits in return. Customers and employees may develop a more positive impression of the business, which can strengthen loyalty and community support. Therefore, donations can improve reputation even though they are not a formal promotional exchange like sponsorship.
Sponsorship vs donation
The key difference
Sponsorship = exchange
The business gives money, products, services or other support and receives agreed promotional benefits in return.
Examples: naming rights, signage, media mentions, branding or social-media exposure.
Donation = giving
The business supports a cause without a formal promotional agreement.
The donation may still create goodwill and improve reputation, but promotion is not the agreed exchange.
Example of how to write this in an exam
The main difference between sponsorship and a donation is whether the business receives agreed promotional benefits in return. In a sponsorship arrangement, a business may provide money to a sporting club in exchange for signage, branding or media exposure. In contrast, a donation involves giving money, products, services or time without a formal promotional agreement. Both methods can improve public image, but sponsorship is a two-way promotional exchange while a donation is primarily community support.
🎧 Prefer listening?
If you prefer listening to the content in Podcast format:
🎥 Prefer watching?
If you prefer watching the content in video format:
🃏 Flashcards
Card 1 of 6
🎮 Revision Games
💰 BME Millionaire
Climb the ladder by mastering corporate sponsorship, donations, promotional benefits and public image.
🏟️ Sponsorship or Donation?
Classify eight realistic examples by deciding whether there is an agreed promotional exchange.
⚡ 60 Second Showdown
Race the clock with rapid questions on sponsorship, donations and their impact on public image.
Biz Fact: Telstra partners with the AFL and runs Telstra Footy Grants to fund local clubs - launched in 2024 with an $8 million investment over 4 years.