Commercialism in Schools:
The Need for School Policy

Table of Contents:

Overview       Commercialism in Schools        The Need for Policy        Collecting Information Online

Curbing Commercial Pressure        The National PTA        The Future Trend     Ways of Addressing School Commericialism

Overview

A  report from the General Accounting Office was released in September of 2000 entitled, "Commercial Activities in Schools".  This report was written on behalf of lawmakers concerned over the ever increasing school/corporate relationships.  The GAO report defines commercial activities as (1) the sale of products, (2) direct advertising such as advertisements in school corridors or on school buildings, (3) indirect advertising such as corporate-sponsored educational materials or teacher training, and (4) market research.  Despite the increasing concerns, little is known about the laws and policies that govern commercial activities and the nature of these activities in schools throughout the United States.  It is important as educators to weigh the advantages and disadvantages of advertising in and around the classroom.  Here we will take a look at the ways in which companies seek to gain entry into schools and the need for school districts and teachers to educate themselves as well as their students about commercialism.

Most school districts lack any written policy governing the use of advertising in schools especially when it involves sponsorship of programs, incentive programs, and electronic marketing.  The GAO's report outlines the increase of commercial activity by stating that “Commercial activities in U.S. public elementary and secondary schools have been growing in visibility throughout the last decade, a period characterized by tightened school budgets.  As visibility has increased, so have concerns about commercial activities that generate cash, equipment, or other types of assistance and their potential effects on students' learning and purchasing behavior." Commercial Activities in Schools).  Alex Molnar at The Commercialism in Education Research Unit at Arizona State University published the fourth annual report on school commercialism finding that in the year 2000, media coverage of commercializing activity declined—for the first time in 10 years.  Molnar and Reaves maintain that this is evidence of an "increasing normalization and acceptance of commercialization in virtually every area of life" (Corporate Involvement in Schools). 

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Commercialism in Schools

Educators and policy makers need to be aware of the types of commercialism in schools.  With little known about the laws and policies it is valuable to become aware of the types of commercialism schools are facing.  Once school districts, teachers, and parents become knowledgeable about commercialism they can then begin to formulate policies that will govern their school's decision making about partnering with corporations.

The Commercialism in Education Research Unit keeps track of eight categories or types of school commercialism.  The eight categories of school commercialism tracked  by CERU are:

1) Sponsorship of Programs and Activities.  Corporations paying for or subsidizing school events and/or one-time activities in return for the right to associate their name with the events and activities.  This also may include school contests.

2) Exclusive Agreements.  Agreements between schools and corporations that give corporations the exclusive right to sell and promote their goods and/or services in the school or school district.  In return the district or school receives a percentage of the profits derived from the arrangement.  Exclusive agreements may also entail granting a corporation the right to be the sole supplier of a product or service and thus associate its products with activities such as high school basketball programs.

3) Incentive Programs.  Corporate programs that provide awards, goods, or services to a school or school district when its students, parents, or staff engage in a specified activity or demonstrate particular behaviors.  The scope of this category's definition was reduced in this year's report because revenue-generating programs such as Campbell's Labels for Education are now included in the new fundraising category.

4) Appropriation of Space.  The allocation of school space such as scoreboards, rooftops, bulletin boards, walls, and textbooks on which corporations may place corporate logos and/or advertising messages.

5) Sponsored Educational Materials.  Materials supplied by corporations and/or trade associations that claim to have an instructional content.

6) Electronic Marketing.  The provision of electronic programming and/or equipment in return for the right to advertise to students and/or their families and community members in school or when they contact the school or district.

7) Privatization.  Management of schools or school programs by private for-profit corporations or other non-public entities.

8) Fundraising.  The fundraising category incorporates some elements formerly included in the Incentive Programs category, as described above, such as collecting particular product labels or cash register receipts from particular stores.  Any activity conducted or program participated in to raise money for school operations or extracurricular programs is considered fundraising.

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Alex Molnar and Joseph Reaves in Buy Me! Buy Me! The Fourth Annual Report on Schoolhouse Commercialism argue that the concerns over commercial influences in schools are even more urgent today, given the phenomenal rise in school-based commercial activities over the last decade.  Since 1990, for example Molnar and Reaves report that press citations of sponsored educational materials increased by 1,875 percent, citations of exclusive contracts between schools and corporations increased 1,384 percent, and citations of privatization increased 3,206 percent (2001).  According to Molnar, corporate involvement in schools has interfered with the ability of schools to provide a sound education, promote the best interests of children, and foster "democratic civic values."  Children in schools, he argues, are increasingly being approached as consumers rather than as learners and citizens.  He cites, for example, ads and products that encourage kids to consume junk food and sodas, market research that exploits students and invades their privacy, and lack of public accountability on the part of education-management organizations (2001).  Because of the reported increases in advertising in schools there is a need for schools districts and teachers to develop policies regarding use of advertising, incentive programs, exclusive contracts, space, sponsorship, and electronic marketing.  

The GAO report also highlights the need for such policies.  The GAO report analyzed commercialism laws in all 50 states and in seven school districts in California, Michigan and New Mexico.  The GAO found that policies are uneven and inadequate.  According to the GAO, "laws and regulations governing commercial activities in public schools are not comprehensive and sometimes lacked formal guidance."  The GAO reported that only "19 states currently have statutes or regulations that address school-related commercial activities."  Further, state policies are often limited in scope and vary widely (Commercial Activities in Schools). 

For example, Michigan laws do not address commercial activities at all, while New Mexico's only law on the subject expressly permits advertising in and on school buses.  In contrast, GAO found that five states - California, New York, Florida, Illinois, and Maine - had comprehensive policies, meaning they authorized or restricted three or more types of commercial activities.  New York law generally prohibits commercial activities on school premises and California law requires school boards to conduct open public hearings before approving many types of commercial contracts.  Laws in Florida and Maine expressly permit districts or superintendents to enter into various commercial agreements.  The GAO found that local policies also varied widely, leading many decisions to be made on an ad hoc basis. 

In addition, the GAO raised concerns that school district policies have not yet adapted to changes in commercial technologies, noting that "none are targeted towards newer forms of media-based advertising, such as those delivered by Channel One and ZapMe!"  As a result of the GAO report there has been a push for legislation for a uniform policy on commercialism in public schools.  The report also notes that specific activities often get designated controversial or non-controversial according to the values and preferences (including brand preferences) of school officials and parents "rather than the nature of the activity itself."  A wide range of policies and levels of commercial activities therefore exist among, and even within, districts. 

The range of school district policies on commercialism range from having no policies, to having policies that need strengthening and some school boards may have policies that officially allow commercialism.  The Milwaukee Principles for Corporate Involvement  in Schools states that “School-business relationships based on sound principles and community input can contribute to high quality education.  However, compulsory attendance confers on educators an obligation to protect the welfare of their students and the integrity of the learning environment.  Therefore, when working together, schools and businesses must ensure that educational values are not distorted in the process.  Positive school-business relationships should be ethical and structured in accordance with the following principles” (1990).  School districts that have developed policies regarding commercialism in schools have used many variations of the following set of principles:

• Corporate involvement shall not require students to observe, listen to, or read commercial advertising.
• Selling or providing access to a captive audience in the classroom for commercial purposes is a violation of the public trust.
• Since school personnel, property and time are publicly funded, selling or providing access to advertising on school property outside the classroom involves ethical and legal issues that must be addressed.
• Corporate involvement must support the goals and objectives of the schools.  Curriculum and instruction are within the purview of educators, with the involvement of the community.
• Programs of corporate involvement must be structured to meet identified educational needs, not commercial motives, and must be evaluated for educational effectiveness by the school district on an ongoing basis.
• Schools and educators should hold sponsored and donated materials to the same standards used for the selection and purchase of curriculum materials.
• Corporate involvement programs should not limit the discretion of schools and teachers in the use of sponsored materials.
• Sponsor recognition and corporate logos should be for identification rather than commercial purposes.
• Any attempt to establish programs of corporate involvement must involve full public disclosure and provide ample opportunity for community input in the initial stages of negotiation, well before a deal is finalized.

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Nancy Willard in Capturing the Eyeballs and "E-Wallets" of Kids in School: Dot.com Invades Dot.edu also points out the need for schools and teachers to recognize what businesses are doing in schools and the need for formal policies.  Willard is concerned with the use of collecting information from students while using computers.  She points out that in exchange for technology resources, a growing number of schools are allowing businesses to collect personal information from students through online profiling and to expose students to the targeted marketing enabled by banner ads (2000).  According to Willard, schools are participating in these exchanges without adequate assessment of their educational value, impact on students, or ethical implications. Unethical classroom activities may require students to disclose personal information to be used for marketing purposes, allow students' online behavior to be tracked without their knowledge, or permit this personal information to be distributed to other online businesses without the knowledge or consent of either students or their parents.   Willard notes, "If teachers are selecting sites for student research, the sites should first be analyzed for the quality, appropriateness, and suitability of the educational materials present on the site” (2000).

She recommends a set of principles for a school policy on commercialism on the Internet and identifies questions teachers should ask when considering the use of a particular website with students. These questions include:

• What information will be collected directly or indirectly from students as they use the site?
• What is the purpose of the collection of information?
• What security provisions have been established to ensure the confidentiality of students' personal information?
• Does the site have any banner ads? If so, what is the relationship of the collection of data to the presence of banner advertising?

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The Consumers Union also believes that commercialism in U.S. elementary and secondary schools poses a significant and growing threat to the integrity of education in America.  They report to see a disturbing trend in commercialism in schools such as:  Teachers using educational materials and programs in classrooms that are produced by commercial interests and contain biased, self-serving, and promotional information.  Pressure on school administrators, teachers, and students to form partnerships with business that turn students into a captive audience for commercial messages, often in exchange for some needed resource (1998).  The Consumers Union sees a number of forces that are converging that put pressure on teachers and administrators to accept ads and other promotional materials in school.  They are chronic school budgetary problems, the ever-growing presence of commercialism in all sectors of society, and the growing competition among corporations for the youth market (1998).

The Consumers Union Education Service is advocating that action be taken by all the stakeholders including the corporate sector, education community, parents, and government.  In their report, Captive Kids: A Report on Commercial Pressures on Kids at School, they outline the steps each should take to take to curb the commercial pressures on students in school. 

The corporate sector, including industry associations and other special interest groups, should: 

• Acknowledge and respect that schools are not a marketplace for products, corporate images, or self-serving viewpoints, and declare that all forms of advertising in classrooms, from couponing and sampling to commercial SEMs and contests, are inappropriate and not an acceptable way of marketing to kids.
• Recognize that schools are under-financed and can benefit from the financial and other resources of the business community; and assist schools with programs whose objectives are empowering and educating youth, not selling to them.
• Publicly support proper funding of schools to eliminate their reliance on corporate sponsorship and advertising revenues.

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 Curbing Commercial Pressure:  The education community should:  

• Support the idea that schools should be ad-free zones, and that classrooms should not be purveyors of commercial messages or influences.
• Adopt SOCAP or IOCU guidelines, and require sponsored programs and materials to undergo the same review procedures and meet the same standards as other curriculum materials.
• Reject the idea that allowing advertising in the school is an ethical way to acquire materials or finance education.  Identify and pursue noncommercial partnerships with business.
• Educate children about the nature of propaganda and commercial messages by teaching consumer and media literacy, helping kids to analyze ads, demythologize products, evaluate sources of information, and clarify alternatives in the marketplace. This should begin in the elementary grades.

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Curbing Commercial Pressure: Parents should:

• Support the adoption and enforcement of SOCAP or IOCU guidelines to keep commercial sponsored programs out of the classroom.
• Teach children to evaluate commercial content in all of the materials they receive, including those in the schools.  Regularly discuss purchasing and money-management decisions with children, and analyze advertising with them.
• Address the larger problem of the under funding of our schools.

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 Curbing Commercial Pressure: Government should:

• Ensure proper funding of schools to diminish their reliance on corporate sponsorship and advertising revenues.
• Eliminate tax benefits for corporate contributions to schools that carry a commercial message.
• Insist that corporations pay their fair share of school funding.

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National PTA

The National PTA proposed the following questions when evaluating a school-business partnership.   

• Does the school-business partnership require students to watch/read advertisements in order to use materials/equipment?
• Does the school-business partnership stress the marketing and/or promotion of products with students?
• Does the school-business partnership require or entice students to purchase a commercial product or require teachers, students and parents to promote a commercial products?
• Does the school-business partnership promote the development of student learning, skills, interest or participation in school activities?
• Is the program open to all students who can appropriately participate, without being capped or limited in a manner that discriminates against any student or group of students?
• Does the proposed business partner market products that are detrimental to the health and well-being of students?
• Prior to acceptance, information describing and explaining the source of all contributions and donations should be reported to the public by schools and school districts.

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Future Trends

The media has focused less attention on commercial activities such as corporate-sponsored programs and electronic marketing in the schools but more attention on privatization and appropriation of school space.  Alex Molnar thinks there may be two possible explanations for these trends.  The first is the growing resistance to school commercialism that is beginning to take effect.  The second is that schools are becoming so highly commercialized that corporate encroachments may no longer be news.  Perhaps the trends reflect a little of both: inroads by opponents of commercialism and an acceptance of commercialism as the norm.  In either case there is a clear need for teachers, parents, and schools to create policies which will benefit the students who are facing a great deal of commercial pressure in school.

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Ways of Addressing School Commercialism

(Taken from the article, "Commericialism in Schools")

What Ethical and Legal Issues Are Raised by In-School Commercialism?

Ethical issues are at the heart of public concern over the effects of commercial activities on schoolchildren.  Critics are especially concerned with in-school commercial activities that

• force children to view advertising in the classroom
• market unhealthful food and drinks to children
• masquerade as educational materials, activities, or programs
• invade students' privacy as a condition of participating in technology-related learning activities
• use children as market research subjects
• take place without the informed consent of parents

Such practices, critics argue, exploit a captive audience, violate public trust, and undermine schools' ability to teach children essential skills such as critical discernment, healthful eating habits, and safe behavior on the Internet.

The growth of commercialism in schools appears to have outpaced laws and regulations at state and federal levels.  Only nineteen states have adopted laws to regulate commercial activities in the classroom, and these laws vary widely in specificity and intent.  Some laws permit, rather than prohibit, specific commercial activities in schools (Shaul 2000).

At the federal level, The Better Nutrition for School Children Act of 2001 limits the availability of junk food and soda in schools and increases the U.S. Department of Agriculture's authority over school-lunch programs.  The Children's Online Privacy Protection Act of 1998 protects children under thirteen years of age from infringement of their privacy by commercial web sites (Willard 2000).

Moreover, many schools will be required to comply with the Children's Internet Protection Act (CIPA), enacted in 2000, which seeks to protect minors who use the Internet from being exposed to pornography and other inappropriate material.  Enacted as part of the Consolidated Appropriations Act of 2001, the CIPA statute applies to "all schools receiving funding through the E-rate program and technology funding through Title III of the Elementary and Secondary Education Act" (Willard 2001).

How Should a School Policy Address In-School Commercialism?

When evaluating technology resources for classroom use, Willard (2000) suggests asking, "Is advertising the vehicle to support the delivery of high quality educational resource, or has the educational resource been established for the purpose of advertising, brand promotion, or corporate promotion?"  Willard (2000) also recommends that schools specifically address commercialism on the Internet through policy provisions such as the following:

• Students under thirteen years of age should not provide personal information such as name, address, or other contact
  information on the Internet unless the information is for an approved, legitimate educational purpose.
• When teachers select sites for student research, the sites should be analyzed for quality, appropriateness, and suitability of educational content, and reviewed for the presence of banner ads.
• Teachers should guide the research activities of students to limit their exposure to banner advertising.