Media Ethics: Issues and Cases 8th Edition by Philip Patterson, Lee Wilkins

Exercise 3

Sponsorships, Sins and PR: What Are the Boundaries?
LAUREN BACON BRENGARTH
University of Colorado at Colorado Springs
Sponsorships are a complicated, yet essential tool for nonprofit organizations. Sponsorships from the for-profit world provide funds that are critical for nonprofit growth and operations, yet they come at a cost. Consider, for example, the for-profit University of Phoenix and a nonprofit organization that administers local Head Start services and provides free preschool to children living in poverty.
While interviewing the Communication Manager of the nonprofit, I asked him if he felt that social media enabled the organization to serve a news-producing function in the community. He affirmed that he not only believes that the organization is a news producer, but that the group's success in driving social media has led to new dollars coming to the organization. Some of those new dollars had raised troubling questions.
For example, contributions from the for-profit University of Phoenix included an exchange of promotional mentions and opportunities by the nonprofit preschool. For example, the preschool promoted the University of Phoenix as the lead sponsor of its annual fundraising breakfast through Facebook and Twitter posts. Additionally, at the breakfast, the nonprofit hosted a University of Phoenix "cyber café" where event attendees were encouraged to log on and tell others that they were at the event.
In previous years the University of Phoenix local staff members volunteered at the preschool through events such as reading to the children, providing "literacy totes" filled with school supplies and books for the kids, and several other activities. The relationship between the two organizations prompted the preschool to nominate the University of Phoenix for a Head Start Corporate award for model corporate/community partnerships, which it won.
Meanwhile, the University of Phoenix has come under fire for its high tuition rates and tendency to cater to low-income students who often leave campus with a pile of debt, minimal job prospects, and no degree. Because of the substantial federal financial aid that students receive, graduation rates have received heightened government scrutiny (Gramm 2012).
Additional University of Phoenix criticisms highlight its reliance on part-time instructors and a pattern of pushing students through course curriculum in half the time of traditional postsecondary schools (Dillion 2007). In 2009, the institution paid a $78.5 million settlement when two whistleblowers filed a False Claim Act lawsuit against the university regarding its student recruitment practices. Officials counteract widespread critiques by saying that the university structure caters to working students that many traditional schools ignore.
The University of Phoenix has experienced a sharp dip in enrollment because of widespread national criticism adding to a negative public image. In the third quarter of 2012, reports from the University of Phoenix reflect a 15% drop in average degreed enrollment and an 8% decline in new student starts. Net revenue for the Apollo Group (the operator of the University of Phoenix) shows a 9.2% decline in the third quarter of fiscal year 2012; however, the company still brought in $3.3 billion in revenue.
What are the appropriate conditions and parameters for a nonprofit to promote its sponsor(s)?