Scottish Government

Anne Wilkin; Richard White; Kay Kinder, National Foundation for Educational Research
ISSN 1478-6788 (Print)
ISSN 1478-6796 (Online)
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Welcome toInsight

Insight is a publication of the research group within Information and Analytical Services Division, which is responsible for providing analytical services within the Scottish Executive Education Department ( SEED). Their work is part of a multidisciplinary unit (consisting of researchers, economists and statistics staff) and the staff undertakes and funds economic analysis and social research in the fields of: school education; children, young people and social work: architecture; and tourism, culture and sport.

The Scottish Executive is committed to the use of sound evidence in the development of policy and practice as well as in the evaluation of policy and its implementation. We therefore want to disseminate the results of research that SEED has undertaken and funded, in a manner that is accessible, interesting and attractive.

Insight aims to present the essence of research projects in a format that will be useful and informative for practitioners, policy makers, parents, academics, and anyone else who has an interest in economic and social research in these areas.

The views expressed in this Insight are those of the author(s) and do not necessarily reflect those of the Scottish Executive or any other organisation(s) by whom the author(s) is or are employed.

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A limited number of additional copies can be obtained from the Dissemination Officer, Information and Analytical Services Division, Scottish Executive Education Department, Victoria Quay, Edinburgh EH6 6QQ (telephone 0131-244-0316). Copies of Insight and our other publications can be downloaded from our website: www.scotland.gov.uk/insight

Introduction

Since the early 1990s, there has been an increasing amount of commercial activity in schools in the United Kingdom ( UK) (Atherton and Wells, 1999), mirroring a similar trend in the United States ( US). The Scottish Executive was committed to examining the range of commercial activities taking place in Scottish schools, as well as the associated costs and benefits which, at the time of this study, were relatively unknown. Hence, the study was intended as an initial step towards obtaining an evidence base on the extent of commercial activity currently being undertaken in a sample of Scottish schools.

About the study

The main aims of the study were: to identify the range of commercial activity and the different types of costs and benefits (including non-financial); to explore local authorities' views and policy position on such activity, and investigate the potential value of the Scottish Executive producing guidance and examples of best practice.

The study had three strands: a desk-based review of literature to provide a context for the research; telephone interviews with a representative of 28 of the 32 local authorities in Scotland, (including those with a financial, advisory, curriculum or enterprise brief), and interviews with a representative in 50 schools across 27 local authorities in Scotland; and finally case-study work in 6 schools (2 primary and 4 secondary).

The literature review

A small-scale desk-based review of currently available literature was conducted involving sources drawn from a range of different sociological and educational databases, as well as from internet searches of relevant websites. The studies included in the review dated from the late 1990s, when accounts of the increase in commercial activity in schools became apparent in the literature.

The literature consistently revealed four main arenas of commercial activity:

Arena 1: Product sales - the most common and arguably the most lucrative arena. It includes contracts between schools and businesses to sell branded products in school. Such contracts usually include food and drink, but may also include fundraising sales of, for example, cards and gift wrap.

Arena 2: Direct advertising - a highly visible form of commercial activity, where companies advertise their product in schools, for example by having their logo on vending machines or by sponsoring a school football team.

Arena 3: Indirect advertising - often through the promotion of corporate sponsored education materials ( SEMs) such as multimedia teaching kits, software, workbooks, lesson plans or reproducible activity sheets. Other forms of indirect advertising include corporate-sponsored contests and incentives such as voucher schemes.

Arena 4: Market research practices - the least common form of commercial activity in schools. Such practices involve the use of questionnaires, focus groups or the Internet to gather data on pupils' preferences and/or consumer habits, or to test new products and advertising strategies.

The review also showed that significant benefits could occur for the schools and businesses involved, while the costs or consequences tended to be borne more by individuals, i.e. pupils, parents and teachers. The literature stressed the need to weigh up the implications of involvement carefully, and the need for clear policies or guidance. Several - mainly US - sources highlighted budget constraints as a reason for schools' increasing involvement with commercial organisations.

The type and extent of commercial activity in schools in Scotland

Which was the most commonly cited type of commercial activity in Scottish schools?

The four arenas provided a starting point for discussions with local authority and school personnel about the different types of commercial activity currently taking place within their schools. A summary of all activities identified within each arena, (listed in order of frequency), is given in Figure 1 at the end of this research summary.

Product sales identified by interviewees most commonly included the sale of food and drink through school tuck shops, canteens and (mainly at secondary level) vending machines. This was followed by the sale of: items produced by pupils as a result of Enterprise in Education activities; school uniform; school photographs; books and catalogue goods; and stationery. As in the literature, this was the most frequently mentioned type of activity.

Direct advertising most commonly involved the sponsorship of school sports teams where companies' logos or names would be displayed on the team strips. Other forms of sponsorship included school publications such as school yearbooks, magazines, newsletters, calendars and programmes for school events in which companies paid to advertise. There were examples in secondary schools of companies providing advertising space in schools ( e.g. notice boards and poster sites), as well as logos on vending machines or water coolers. Isolated examples included the printing of lottery tickets with the company's name on and donations/prizes bearing the corporate name/logo. Examples of the latter included a minibus and a computer suite.

Within the arena of indirect advertising, voucher schemes ( e.g. for computer, sports or musical equipment, or books) were most commonly identified, followed closely by the donation by companies of prizes for awards ceremonies or school events, and the donation by companies of cash or gifts in kind. Other forms of indirect advertising included sponsored schemes, projects or competitions, sponsored educational materials ( SEMs), the provision of conferences, presentations or workshops for pupils, branded software in schools, grant applications to businesses and a contract with a book store to allow staff to purchase books through the CPD budget.

Market research was the least common form of commercial activity in schools (reflecting the findings from the reviewed literature). Approaches directly to schools were likely to be discouraged, as were requests for schools to be involved in research for commercial companies. Schools' involvement in educational research for reputable organisations and universities was usually supported. Some trialling of computer software and/or new products was noted, as was some research activity by pupils, usually as part of enterprise activity.

Local authority staff reported that the extent of commercial activity taking place in schools was limited and varied across and within local authorities. However, there were different interpretations of what such activity constituted, depending on the role of the interviewee. School staff noted that commercial activity had existed in some form or another, albeit small scale, for a number of years.

Reasons for Scottish schools' involvement in commercial activity

For what reasons do schools in Scotland say they are involved in commercial activity?

The rationales underpinning the decision to become involved in commercial activity could vary according to the activity, but were not generally related to budget constraints, unlike some of the US sources referenced in the literature review. The majority view was that commercial activity could be entered into if:

• it would directly benefit the pupils
• it would provide some benefit for the school as a whole
• it would contribute to obtaining funds for specifics
• the benefits outweigh any costs/consequences
• the activity was compatible with the school's ethos/values.

Consultation regarding engaging in commercial activity

Consultation prior to becoming involved in commercial activity took place most often with school staff, particularly senior staff at the secondary level. References to consultation with parents were also common, as were references to consulting pupils, particularly through the pupil council and to a lesser extent, with the local authority.

Income generated

How much income are Scottish schools said to raise by their commercial activities?

The income generated by commercial activities was reported by school interviewees to be low, particularly in terms of the overall school budget. As noted above, some stressed that income generation was not the primary purpose of any commercial activity. When asked where such income was spent, the highest ranking response was to state non-specifically that it went into the "school fund". Subsidising school trips was the next most often identified usage, while some interviewees referenced specific items such as technical equipment, books, prizes and awards, sports equipment and reinvestment in yearbooks, planners and school magazines.

Future direction of commercial activity
The majority of interviewees reported that commercial activity was likely to stay at current levels, although some did indicate that they were embracing expansion. Others highlighted further involvement in enterprise activity and particularly with local businesses, while another response was to indicate responsiveness depending on availability or suitability of funding. Finally, just two school interviewees related expansion to budget, i.e. if this was reduced they would be seeking funding.

The benefits of commercial activity in schools
The report identified benefits for schools, companies and individuals as a result of engaging in commercial activities in schools.

The most commonly identified benefits for schools were:

• increased access to materials, equipment, prizes and trophies
• potential enhancement of the curriculum or learning environment
• financial benefits
• improved partnerships and links with business
• increased links and engagement with the local community
• the promotion of a school ethos/identity and parental engagement
• advantages associated with the social milieu of vending machines ( e.g. retaining pupils in school or alleviating accommodation pressure).

Businesses were seen to benefit from involvement in commercial activity in schools through:

• enhanced opportunities for community engagement and links
• increased opportunities for publicity, PR and product/service sales
• the provision of training opportunities for company staff in schools ( e.g. mentoring and delivering presentation/interview skills courses to pupils as part of their professional development).

School staff identified the following as the most common benefits of commercial activity for pupils (echoed by pupils themselves):

• increased experience and understanding of the commercial sector, including enterprise skills/activity
• enhanced facilities in school
• increased opportunities to access a broader range of equipment and experiences
• health-related benefits (such as healthy products in vending machines)
• possible employment opportunities with local companies
• enhanced identity (through the provision of sports teams' strips)
• the encouragement of team work (through enterprise work)
• the encouragement of reading through increased book sales

Benefits for school staff included increased expertise in, and understanding of, the commercial sector. For parents, the main benefits were the provision of essential items ( e.g. school uniform at a reasonable cost) and increased involvement in their child's school.

The costs of commercial activity in schools

What were thought to be the main costs or consequences of commercial activity?

For schools, the main costs or consequences of engaging in commercial activities were said to be:

• increased burdens on staff/administrative time
• compromising or conflicting values and/or policies
• the health of pupils through the sale or promotion of various products
• over reliance on funding provided by companies
• lack of choice in facilities or equipment provided
• the burden/cost of maintaining equipment donated
• liability for promotion
• being in breach of code of conduct or financial regulations (probity)
• parents perceiving a lack of funding in the local authority
• the need for the school to match donated/received funding.

The costs to individuals reflected those identified for schools, and focused on:

• the health of pupils
• pupils' over exposure to or representation of certain products
• staff time
• pressure on parents (pester power)
• exploitation of children
• pressure on pupils to participate in voucher schemes or to buy products
• lack of protection for staff
• financial costs
• bullying.

It is worth noting that these were often suggested as potential consequences, rather than actual realised costs experienced through first hand involvement in commercial activity. Interviewees clearly felt it was easier to identify benefits rather than costs of engaging in commercial activity, perhaps suggesting that it was easier to focus on what the school got out of it, rather than look at any possible downsides. However, there was not unequivocal support for commercial activity. Interviewees contended that if they perceived the costs as being too great, they would not become involved, or would withdraw from any activities they were already engaged in. In terms of the impact of commercial activity as an influential factor on pupils' purchasing patterns, more than half the school respondents suggested that there had been no such impact. Most of the other responses implied that it could so, in either a very minor way, or that it could have actual positive effects, such as influencing healthier food options. Only two secondary respondents indicated any negative impact.

Limits to the scope of commercial activities undertaken in schools

Were there kinds of commercial activity that were thought unacceptable?

School interviewees identified certain areas of commercial activity that would be unacceptable in their school environment. Primarily, these would include activities that may adversely affect the health and welfare of their pupils and those that related to companies that were deemed unethical, as well as those activities that were contrary to the ethos and values of the school or the local authority. The active endorsement of products by schools was viewed as unacceptable, as was any commercial activity intent on influencing pupil purchasing patterns. Some examples regarding direct advertising of fast food suppliers were given in relation to this, as they were seen to send messages at odds with schools' existing priorities such as healthy eating initiatives.

Policy and guidance on commercial activity in schools

What kind of policy or guidance document on commercial activity would be welcomed by schools?

Most interviewees said that local authorities did not have a written policy or set of guidelines regarding commercial activity in schools, although a few examples were offered. Opinions were mixed as to the desirability of this absence, but most suggested that headteachers' autonomy and responsibility was a more effective way of managing commercial activity. Where policies did exist, they were often said to be linked to other broader local authority policies and priorities and were advisory in nature.

Local authorities were generally thought to be cautious in their approach to commercial activities in schools. Interviewees largely noted that despite being cautious, local authorities were, in the main, supportive of schools engaging in appropriate commercial activities as long as pupils were seen to benefit. Local authorities were considered advisory and supportive, rather than proactive, prescriptive and regulatory. They could have a 'filtering' role, protecting headteachers from hard-sell approaches. Similarly, interviewees broadly welcomed the idea of some form of written guidance from the Scottish Executive, as long as it centred on providing information and examples of good practice rather than constituting regulations, restrictions and direction.

Key factors in good practice in commercial activity in schools
A number of issues were raised by interviewees, often revolving around the need to consider and reflect carefully on the relevance and appropriateness of any particular activity to be undertaken. As well as being directly in pupils' interests and congruent with the school's values, considering the activity's contribution to schools' and local authorities' priorities was seen as a component of good practice. Furthermore, in order to be effective, commercial activities should have good communication and effective management between schools, local authorities and businesses. Securing quality involvements of local companies and local communities, as well as direct contact with businesses and partnership approaches were noted as elements of good practice.

Effective practice was also characterised with obtaining quality information through research when making a decision to allow a commercial activity in a school. Knowing the company's motives and ethical orientation was particularly important. In addition, consultation with parents, pupils and other stakeholders was identified. There should be proper planning, clearly defined aims and procedures, including adequate auditing, accounting and evaluation systems. Consideration of any legal implications was also raised.

Conclusion

Would a clearer definition of commercial activity help maximise opportunities and encourage consistency across schools and local authorities?

A wide range of ethical, educational and economic issues surrounding commercial activity was raised by interviewees from schools and local authorities. There was consensus that any commercial involvement had to be of direct benefit to pupils, ethical in nature as well as congruent with the values of the school and local authority. The meaning of "commercial activity" was open to interpretation and could include enterprise, world of work and health initiatives, as well as more traditional product sales. This raised the question as to whether a clearer definition of commercial activity would be of assistance in maximising opportunities for - and encouraging consistency across - schools and local authorities.

The study also showed that low amounts of income and low-levels of activity were frequently reported. Colourful descriptors of such income like "a spit in the ocean" again signified that it is educational merit that drives any commercial involvement. However, the report questions whether this financial modesty might inhibit opportunities and investment in educationally valid commercial activity. The report also questions how far costs and consequences are being fully articulated in schools' calculations regarding commercial involvement, although the "caution" and checking procedures described indicate potential costs are considered carefully. The study showed that schools and local authorities would value a document offering good practice guidelines and exemplars, and hence it was suggested including accounts of successful commercial activity, as well as checklists and caveats.

Figure1: Types of commercial activity identified by local authority and school personnel as currently taking place in Scottish schools (in rank order of the most frequently identified)

Source: Telephone interviews with local authority and school staff, and case-study work in the NFER study, 2005

References

Atherton, M. and Wells, J. (1999). 'Commercial Involvement in Schools' [online]. Available: http://www.norden.org/nicemail/issues/eleven/commercial.htm [7 February 2005].
Clark, S. (2004). 'Advertising in Schools' Times Educational Supplement [online]. Available: http://www.tes.co.uk/search/story/?story_id=396901 [20 June 2005]
Larson, K. (2002) 'Commercialism in Schools' [online]. Available: http://eric.uoregon.edu/publications/digests/digest158.html [14 June 2005]
Rayner, G. (2001) 'Today's lesson: get munching', Health Matters, 44, Spring. 2001

The Insight Series

1. Classroom Assistants: Key Issues from the National Evaluation
2. The Impact of ICT Initiatives in Scottish Schools
3. Moving On to Primary 1: An Exploratory Study of the Experience of Transition from Pre-School to Primary
4. Accelerating Reading and Spelling with Synthetic Phonics: A Five Year Follow Up
5. Assessment of Benefits and Costs of Out of School Care
6. Meeting the Needs of Children from Birth to Three: Research Evidence and Implications for Out-of-Home Provision
7. Key Findings from the National Evaluation of the New Community Schools Pilot Programme in Scotland
8. Scottish Qualification for Headship: Key Issues from the Evaluation
9. The Sitter Service in Scotland: A Study of the Costs and Benefits
10. Awards in Early Education, Childcare and Playwork: A Qualifications Framework for the Future
11. An Evaluation of the Higher Still Reforms
12. The Management of Supply Cover in the Teaching Profession
13. Parents' Demand for and Access to Childcare in Scotland
14. Evaluation of Personalised Laptop Provision in Schools
15. Teachers' Perceptions of Discipline in Scottish Schools
16. Minority Ethnic Pupils' Experiences of School in Scotland ( MEPESS)
17. A Seven Year Study of the Effects of Synthetic Phonics Teaching on Reading and Spelling Attainment
18. An Assessment of the Support and Information for Victims of Youth Crime ( SIVYC) Pilot Scheme
19. Child Death and Significant Case Reviews: International Approaches
20. The Impact of Information and Communication Technology in Scottish Schools: Phase 3

If you have views on Insight or wish to find out more about SEED's research and economics programme, please contact Information and Analytical Services Division, Scottish Executive Education Department, Victoria Quay, Edinburgh EH6 6QQ or by e-mail on recs.admin@scotland.gsi.gov.uk