NASCAR: checkered flags are not all that are being waved.

Lee, Jason W. ; Bernthal, Matthew J. ; Whisenant, Warren A. 等

Introduction

The National Association for Stock Car Auto Racing (NASCAR) is a powerful force in the world of sport. Each year, fans flock to race tracks across the country to witness the thunderous sounds and incredible sight of cars racing at speeds often in excess of 180 miles per hour. It is a sport that has experienced phenomenal growth since its inception in 1947. While NASCAR was born in the Southeastern United States and has a uniquely Southern history, it now has tracks all across the country. However, it is a sport that for a number of reasons retains a stereotype as a "redneck," "good ol' boy," Southern sport, a stereotype that could hamper its ability to attract new, more demographically diverse fans, as well as some sponsors.

At a typical NASCAR race, Confederate flags are a familiar sight. The flag can be seen hanging from flagpoles on campers in the infield, flying at fan tailgates in the parking lots, adorned on spectator clothing, and even displayed on private property as one drives to the track. The flag is present not only at Southern tracks, but at tracks across the country. The purpose of this case is to assess how NASCAR's brand image is affected by its perceived connection to this powerful symbol. The presence of the Confederate flag at NASCAR races leads to a number of important questions. In what specific ways does the presence of the flag affect NASCAR's brand image? How, if at all, can the presence of the flag limit NASCAR's business potential? What are the ethical considerations surrounding the presence of the flag? It is to these questions that this case is addressed.

NASCAR's Success

Under the control and guidance of Bill France Sr., NASCAR was established as the sanctioning body for stock-car racing in December of 1947, and the first sanctioned race took place along the beach in Daytona, Florida the next year ("History of NASCAR," 2010). Since its inception, NASCAR has experienced substantial expansion with regard to fan attendance, media coverage, and sponsorship. A testament to this is that by the 1990s, on-site attendance grew by 80%, increasing to approximately 9.3 million attendees from 1993 to 1998 ("History of NASCAR," 2010). NASCAR now has three national racing series (The Sprint Cup, The Nationwide Series, and the Camping World Truck Series), along with a number of regional series and even one series in Mexico. Races in these series are watched by millions of fans.

Throughout most of its existence, NASCAR has been largely a Southern sport. Though NASCAR has had and still maintains a strong presence in this region, NASCAR is by no means exclusively a Southern sport. It has migrated and thrived outside of the South. While in the 1960s and 1970s, 75% of NASCAR tracks were located in the South (Hurt, 2005), by 2008, only 42% of NASCAR tracks were located in Southern states ("Tracks," 2008). NASCAR races are held on tracks in states such as Illinois, Iowa, Kansas, Delaware, California, Indiana, Nevada, Michigan, New Hampshire, Arizona, and Pennsylvania. Racetrack locations are not the only things that seem to have migrated away from the South as NASCAR has embarked on its expansion from a regional to national sport. Hurt (2005) noted that the geographic diversity of driver hometowns has also increased. No longer are 70% of the top drivers from North and South Carolina, as they were in the 1964 season (Mueller, 2008). This can be seen in the presence of immensely popular drivers such as Tony Stewart, Jeff Gordon, Jimmie Johnson, and a host of others who were born and raised outside of the South.

Marketers are clearly latching on to NASCAR's popularity for financial benefit (Amato, Peters, & Shao, 2005; Giangola & O'Connell, 2007). As Wetzel (2006) notes, "NASCAR remains highly popular. It still gets sizable television numbers that all but the NFL would kill for. The circuit is still awash in sponsorship and endorsement money and continues to attract the best drivers from other racing leagues" (para. 18). NASCAR has capitalized on its vast popularity by embarking on monumental broadcast deals with FOX, NBC, and TNT, worth approximately $2.8 billion (Amato et al., 2005), and NASCAR has been identified as the number two televised sport, behind only the NFL (Vega, 2007).

One of the main contributing factors to NASCAR's success has been fan loyalty. According to Amato et al. (2005, p. 82), NASCAR's "fan commitment generates a degree of loyalty that is unmatched [by] any other sport in the U.S." Additionally, NASCAR's poster boys such as Jeff Gordon and Dale Earnhardt, Jr. are prominent product endorsers who are among the most visible sport personalities in the U.S.

NASCAR and Southern Identity

Since its inception, NASCAR has been linked to various stereotypes. It is a sport that has been noted for its loyal following, its commercialization, and given its Southern roots, its relation to Southern culture. Indeed, while NASCAR has expanded across the country, stock car racing remains a sport that was born and raised in the South. Its roots can be traced back to Appalachian moonshine drivers of the 1930s and 1940s. In order to avoid government revenuers who were on a mission to stop the illegal whiskey trade, these drivers tinkered with their cars to make them as fast as possible (Hagstrom, 2001). A faster car meant a smaller chance of arrest. The cars and their drivers gained fame, and a dispute between two moonshiners over who had the fastest car eventually led to the first stock car race on a farm field in Stockbridge, Georgia in the mid-1930s (Golenbock, 1993; Hagstrom, 2001). As races continued to be held and more and more spectators showed up, the farmer fenced off the field, put up a gate, and charged admission, with the payout for the drivers equaling what they made running moonshine (Hagstrom, 2001). Races expanded, with most held on dirt tracks at state fairgrounds, horse racetracks, and plowed up fields (Hagstrom, 2001). Stock car racing, as part of Southern culture, had arrived.

Hurt (2005) explains that "the regional significance of NASCAR is directly tied to place and [S]outhern identity" (p. 133). Particularly relevant to the current case is that NASCAR's connection to the South and its Southern white male following has often led to it being branded as a sport which appeals to "good ol' boys," "rednecks," and other such stereotypess (Amato et al., 2005; Johnson, 2001; Lapio & Speter, 2000). Assael (1998) provides a demonstration of this in describing the nights leading up to NASCAR's "Super Bowl," the Daytona 500, as being embodied with "party animals wandering in the dark infield, threading between campers and Confederate flags, draining beers and singing Lynyrd Skynyrd songs off key" (p. 10). Also describing this stereotypical view of NASCAR fans, Hurt (2005) stated, "[t]he fans have a raucous reputation as beer drinking, Confederate battle flag-waving, and catcalling white [S]outhern good ol' boys" (p. 120). While NASCAR now holds races all across the country, this stereotype, embraced by some and ridiculed by others, remains. One of the primary reasons for the perpetuation of this image of NASCAR can be found in the symbolism ever present at NASCAR races.

Symbolism in NASCAR stems from its connection to various facets of the South and Southern imagery. Symbols are exceptionally compelling in the messages they transmit. Symbols provide a means for community. In sport, community can be attained through identifying with various forms of symbolism such as utilizing nicknames for athletic teams, displaying school colors, wearing special clothing or jewelry, and engaging in ritual chants and songs (Eitzen, 2006). Though such symbolism may certainly be positive, it can also be harmful in that divisive symbols can represent, within a sport context, a manifestation of harmful attitudes held, or at least tolerated, by fans and/or the sport organization. Divisive symbols may demean, trivialize, marginalize, and ultimately diminish certain groups or individuals through maintaining the inequities that may be reflected in larger society (Eitzen, 2006). Such concerns have resulted in debate over issues such as disparaging mascots, namely ethnic (e.g., Native American) mascots. This debate has been sparked in a variety of sport settings including scholastic, collegiate, and professional sport. In regards to collegiate sport, the National Collegiate Athletic Association (NCAA) went as far as to institute a ban on postseason play for higher education institutions using what were determined to be hostile or abusive team nicknames ("NCAA," 2005).

One of the most prominent forms of symbolism at any NASCAR event is the presence of flags. In essence, there is a flag culture that surrounds a typical NASCAR race. Flags including the American flag, state flags, flags with insignias of fans' favorite drivers, and flags reflective of Confederate imagery (e.g., the Confederate flag) are commonly found at NASCAR races. They adorn campsites in the infield, tailgate areas in the parking lots, and fan clothing. In some locations, they are found on private property around and leading to the racetrack. The presence of the Confederate flag is one of the more divisive examples of sport imagery in existence today. Henry (2004) stated that, "[f]ew symbols of American history are as controversial as the Confederate Flag" (p. 573). Proponents and opponents of this symbol hold it in very different regard. As Eitzen (2006) notes:

   Then there is the use of the rebel flag--the symbol of the
   Confederacy, racial segregation, and African American
   enslavement--as the rallying symbol for sports teams at some
   Southern schools. Proponents see the Confederate flag as an
   inspirational symbol of Southern heritage and Old South pride and
   tradition. Opponents of this practice see the symbol as sending an
   inflammatory message about a tradition of racial oppression and
   exclusion. (p. 7)

The Confederate flag has become a polarizing image due in large part to its employment by extremist organizations such as the Ku Klux Klan and neo-Nazi groups (Leib, Webster, & Webster, 2000). However, many proponents of the flag decry its use by these groups and claim that for them, it simply represents heritage, not hate. Quite simply, while some see the Confederate flag as a symbol of Southern pride and sacrifice, others view this flag as a symbol of intolerance and hate. In line with this, Bonner (2002) notes that perhaps the most notable characteristic of the Confederate flag as a symbol is its indeterminacy of meaning, a characteristic that frustrates both its proponents and opponents. Leib et al. (2000) state that though flags are often utilized to unite people, "nearly 140 years after the end of the Civil War, the Confederate battle flag continues to be an icon that divides the region's population" (p. 309). Attachment to symbols runs deep. As Eitzen (2006) notes, debates over the appropriateness of symbols demonstrate the power that they have to unite or divide and the passions that they arouse within us. In the case of the Confederate flag, both those who support and those who oppose the presence of the Confederate flag in various settings cling adamantly to their respective positions.

The divisiveness of the image of the Confederate flag has caused great controversy and hostility reaching beyond NASCAR. The debate over such imagery has been battled out in settings such as Ole Miss football, the state capital of South Carolina, and even through the legal system. In 2001, the NCAA instituted a ban on predetermined postseason events (e.g., NCAA basketball tournament regionals) in South Carolina and Mississippi due to the Confederate flag being displayed on Statehouse grounds (Vowels, 2007). This ban has deprived both states of the revenue associated with hosting such events, and was put in place by the NCAA due to its desire to disassociate itself with and take a stand against the negative meanings many ascribe to the Confederate flag. Morris (2009) noted that the ramifications of the ban not only affect the state in regards to loss of revenue and exposure associated with hosting such events, but that "[m]oving the flag to a museum and removing the stigma of racism attached to it would go a long way toward improving the state's image" (para. 14).

NASCAR, Branding, and the Confederate Flag

The concept of branding is a key element in understanding the potential effects of NASCAR's perceived association with the Confederate flag. Branding describes the names, designs, symbols, images, slogans, themes, positions, product characteristics, and other attributes associated with an organization that are used to differentiate it and/or its product(s) from the competition (Lee, 2010; Mullin, Hardy, & Sutton, 2007; Rein, Kotler, & Shields, 2006; Shank, 2009). Keller (1998) discusses the importance of being mindful that attributes of a brand are typified by both product-related and non-product-related attributes, as well as both positive and adverse perceptions. Similarly, Rein et al. (2006) view a brand as a synthesis of facts and images related to a sport product. As a non-product related symbol commonly associated with NASCAR, and one that generates both positive and adverse perceptions depending on the audience, the Confederate flag is clearly a challenging and complex component of the NASCAR brand.

As a business strategy, effective branding is extremely valuable and occurs in sport at a variety of levels including the league level, club level, university level, player level, event level, and so forth (Foster, Greyser, & Walsh, 2005; Lee, 2010; Lee, Miloch, Kraft, & Tatum, 2008; Rein et al., 2006). The merits of good branding have been well-noted (Gladden & Funk, 2001, 2002; Gladden & McDonald, 1999; Gladden & Milne, 1999; Gladden, Milne, & Sutton, 1998; Lee et al., 2008). For a sport property, developing and maintaining a favorable brand image can significantly and positively impact key business goals such as increasing corporate sponsorship, attendance, donations, merchandise sales, and media coverage (Lee et al., 2008). Good brand management should be a primary focus, then, of any sport marketing venture, and NASCAR is no exception. Miloch (2010) perhaps best summarizes the challenges the divisive symbol of the Confederate flag presents to NASCAR's branding:

   Sport brand management, or branding, is of great
   significance for the sport enterprise. The unique
   and ever-changing environment of sport often
   presents sport entities with distinct opportunities
   to cultivate and reinforce a specific brand identity,
   while also presenting unique barriers in brand cultivation.
   The manner in which a sport entity crafts
   and disseminates its message, combined with its
   ability to capitalize on opportunities for branding
   and respond to challenges, has a dramatic impact
   on the public's perception of the brand. (p. 3)

How NASCAR responds to the perceived association between its brand and the Confederate flag, or perhaps more accurately, to the perception of the Confederate flag as part of its brand, will influence how key stakeholders view the brand going forward. Three of these key stakeholders are sponsors, current and potential fans, and the media.

Potential Sponsorship Consequences

One potential consequence of NASCAR's perceived association with the Confederate flag relates to sponsorship. One goal of many sport sponsors is that of brand image transfer (Cornwell & Maignan, 1998; Levin, Joiner, & Cameron, 2001). That is, many sponsors desire to transfer the image of the sponsored sport property to their own brand(s) in order to strengthen their brand image. Importantly, brand image is one of the two central contributors to customer-based brand equity (Keller, 1993). Keller (1993) defines brand image as perceptions about a brand that are reflected by the brand associations held in consumer memory. Brand associations can vary in strength, uniqueness, and perhaps most relevant to the current case, favorability (Keller, 1993). As a synthesis of facts and images, the overall NASCAR brand has many favorable image associations (e.g., speed, excitement, success) with which prominent companies such as Sprint (the title sponsor of NASCAR's elite race series, the Sprint Cup) desire to connect in order to shape and strengthen their own brand image.

Also included in the NASCAR brand, however, is the image of the Confederate flag and the fact that it flies prominently at NASCAR races across the country. The symbolism inherent in the Confederate flag can represent unfavorable associations for any brand with which it is connected. When choosing to partner with a sport property, there is no doubt that many sponsors contemplate all potential favorable and unfavorable brand associations linked with that property. The likelihood of any sponsorship deal is reduced as sponsor perceptions of the risk posed by any unfavorable brand associations increase. Therefore, it is possible that NASCAR is not realizing its full sponsorship revenue potential due to negative associations stemming from its connection to the Confederate flag.

Sponsorship revenue is crucial to the existence and survival of sporting events at both the professional and amateur levels (Danylchuck, 2000), and it is particularly crucial to NASCAR (Clarke, 2007). The vast majority of operating funds for NASCAR teams comes from sponsorship dollars, and overall, approximately $1 billion of the $3 billion NASCAR industry stems from sponsorship (Amato et al., 2005). Title sponsorship of a front-running NASCAR team costs $15 to $20 million per year (Clarke, 2007). In 2007, Jeff Gordon's team brought in $26.5 million in sponsorship (Gage, 2008). With such high stakes, alienation of stakeholders and civic backlash due to a perceived sponsor promotion and/or tolerance of the negative messages many see in the Confederate flag would be highly undesirable. Such perceptions can clearly arise, no matter how deserved, given the ubiquity of the Confederate flag at NASCAR races. Certainly, no companies would desire such alienation and backlash, and companies that are actively reaching out to African-Americans and/or Hispanics (e.g., Target Corp., Burger King, etc.) may be particularly concerned. Further, companies whose brand is positioned in part on community and inclusion (e.g., Disney) may also give pause.

Potential Market Expansion Consequences

Beyond potential consequences related to sponsorship revenue, the NASCAR brand's perceived association with the Confederate flag also raises challenges related to expanding its fan base, challenges that can be explained by the concept of fan identification. Fan identification is defined as the personal commitment and emotional involvement customers have with a sport organization (Sutton, McDonald, Milne, & Cimperman, 1997). While most applications of fan identification within sport deal with sport teams, one can extend this concept to the idea that fans can range in their identification with a sport (such as NASCAR racing) itself. Two of the managerially controlled factors that can contribute to fan identification, according to Sutton et al. (1997), are directly tied to the presence of the Confederate flag at NASCAR events and might explain how the flag could hinder NASCAR from expanding its fan base to include those who associate the Confederate flag with hatred, intolerance, and racial oppression. First, a sport organization's reputation can detract from or contribute to fan identification. An organization's reputation can be influenced, in part, by perceptions of its integrity and decision making. It can be hypothesized that NASCAR's reputation among opponents of the Confederate flag is damaged because these individuals believe that NASCAR has made the conscious decision to allow these flags to fly at its events, a decision they believe reflects a lack of integrity because it suggests to them that NASCAR either endorses the meaning that they see in the flag or, at minimum, tacitly tolerates that meaning. Second, sport organizations that foster a sense of community among their fans heighten fan identification. One factor that contributes to a sense of community is common symbols. In essence, sport organizations can foster emotional involvement within their fans through organizational symbols (e.g., logos, mascots, team names) that are tied to the community in which they exist. As related to the Confederate flag being perceived as a NASCAR symbol (albeit an "unofficial" one), many individuals who might otherwise be potential NASCAR fans are unlikely to become personally committed and emotionally involved with a sport that houses symbols which they believe do anything but tie into their own community or suggest a community to which they're invited to belong.

The issue of the Confederate flag at NASCAR events as it relates to NASCAR's attempts to maximize sponsorship revenue and expand its fan base is not a simple one, however. On the surface, it might seem that NASCAR should simply take whatever steps it can to eliminate the presence of the Confederate flag from its events. However, while this might ease worries of current and potential sponsors and remove barriers to developing fan identification among opponents of the Confederate flag, this action has the clear potential to lower fan identification among a number of NASCAR's current fans who are proponents of the flag. These fans would likely believe that this conscious decision lacks integrity and detracts from the existing NASCAR community with which they are highly identified. Related to this, Bernthal and Regan (2001) found that some NASCAR fans in the South were experiencing feelings of being forgotten and unappreciated by NASCAR during its expansion from a primarily regional sport to a national sport. These fans strongly identified with NASCAR's roots as a Southern sport, and expressed feelings that NASCAR was devaluing these roots to a degree by removing races from Southern tracks to provide race dates to newly established tracks outside of the South. To the extent that these and similar fans see the Confederate flag as a positive symbol of NASCAR's brand identity, in that to them the flag represents Southern pride and heritage, removing the Confederate flag from NASCAR events could potentially heighten their feelings of diminish ment by NASCAR.

Media Matters

The media continues to associate NASCAR with its Southern roots and the Confederate flag. One notable event, which clearly demonstrated the media's attention to NASCAR and the Confederate flag, was the appearance of Brian France, Chief Executive Officer and Chairman of NASCAR, on the 60 Minutes television program. In this program, reporter Leslie Stahl repeatedly depicted the NASCAR experience as being tied to Confederate flag imagery ("CBS News," 2005). France and Stahl shared the following exchange:

Stahl: What are you doing to convince (smile on her face) African-Americans that this is not a good-old-boy, Southern, Confederate flag sport? Because that's the image.

France: Well...

Stahl: Be honest about that.

France: I think it's a fading image.

Stahl: But one of the reasons that American blacks have not gravitated to this sport is because of its image as a good-old-boy sport with the Rebel Confederate flag ... I mean this is ... this is what people who haven't hooked into the sport think of it. Rather fair or not that's its image. What are you doing if anything to change that image so people aren't turned off by that?

France: Well, I think it's changing. As we go out of the Southeast and go into different markets we're exposing, if it's Chicago or if it's Los Angeles, wherever it is, people can see a different NASCAR than it was 15 or 20 years ago. Bill Lester is an African-American driver from one of our truck series that's doing very well. And he's, we're getting participation, if you look around NASCAR you will see more African-Americans on pit-road as an official, you'll see more in the front office, you know so ...

Stahl: But you still see the Rebel flag (again smiling).

France: Well look, these are massive facilities and I can't tell people what flag to fly. I can tell you the flag we get behind, it's the American flag.

Stahl: Yeah but you'd love to tell them not to fly (laughing) the Confederate flag if you could.

France: Yeah, well, it's not a flag that I look at with anything favorable, that's for sure.

Stahl: But you can't ban it, you wouldn't even think of banning it.

France: A lot of flags fly you know off property, but they are in and around the facility. And there are other flags ...

Stahl: Can you ban the Confederate flag in your facility? Could your sister say, "at my race tracks we are not going to have that flag?"

France: I think that you get into freedom of speech and all of the rest of it. But you know, look, all we can do is get behind the most important flag, the American flag. ("CBS News," 2005)

The presence of the Confederate flag at NASCAR events is a common topic throughout the media. As a controversial topic, it draws viewers, readers, and listeners in droves. Quite simply, for the media, the topic sells, and will likely continue to sell as long as the issue lacks any resolution. As can be gleaned from the France/Stahl interview, NASCAR would like to see the media coverage of this topic diminished. Clearly, such coverage is not in the best interest of NASCAR, as it has the effect of perpetuating its brand image as unwelcoming to the minorities that the organization seeks to attract. It is also not in NASCAR's best interest as it provides a top-of-mind negative image attribute that may deter potential sponsors. Finally, it is not in the best interest of NASCAR in the sense that it has the potential to counteract, from a public relations perspective, NASCAR's initiatives and attempts to increase its diversity among both participants (drivers, pit crew members, and other industry employees) and spectators.

NASCAR's Diversity Efforts

To expand beyond its Southern "good ol' boy" sport image, in part as proliferated by symbols such as the Confederate flag and media coverage of it, NASCAR has implemented diversity initiatives in order to "reflect the fabric of America" (Hart, 2008, para. 17). Many of these initiatives reflect the sentiments expressed by top NASCAR officials such as President Mike Helton and CEO Brian France. Both have stated that diversity, both on and off the track, is a top priority for NASCAR, and that it is a key element in NASCAR's continued growth and success (Johnson, 2005; Livingstone, 2007). Included in NASCAR's internal diversity initiatives are a diversity council, support of the Urban Youth Racing School, the National Diversity Internship Program (NDIP), the Motorsports Industry Workforce Initiative, and the Drive for Diversity program (Hugenberg & Hugenberg, 2008). These initiatives represent NASCAR's attempt to increase diversity throughout its organization. Through the NDIP, for example, NASCAR offers a 10 week, full-time, paid summer internship program to ethnically diverse college students. In its nine-year existence, over 170 interns from across the country have participated in the NDIP ("Overview," 2010). Further, NASCAR's Motorsports Industry Workforce Initiative works in conjunction with the NDIP to create a pipeline for ethnically diverse students to find full-time employment in the NASCAR industry ("Our History," 2010). The diversity effort that perhaps garners the most attention is the Drive for Diversity program, established in 2004. This is a developmental program for minority and female drivers and crew members. It supports drivers in two of NASCAR's developmental racing series, and provides a year-long pit crew training program to crew participants. According to NASCAR, the intent is for this program to diversify not only its participant base, but its audience base as well ("The Program," 2010), in that a more ethnically diverse participant base will attract more ethnically diverse fans. NASCAR partners are also leveraging their partnerships with NASCAR by piggybacking on diversity efforts. Goodyear, for example, hosts race weekend interns for its Racing and Diversity program, an effort the company began to provide minority high school students with working experience with NASCAR. The program allows these students to experience the variety of career opportunities that NASCAR offers ("Goodyear," 2009).

The success of NASCAR's diversity initiatives, particularly the Drive for Diversity initiative, has come under some scrutiny. Ideally, the Drive for Diversity program would lead to minority drivers competing in NASCAR's top series, the Sprint Cup. This would lead to positive media coverage that would, no doubt, enhance NASCAR's efforts to attract more minority fans. However, the Drive for Diversity program has yet to deliver in this regard. Some who have participated in the program claim that it is underfunded and that the participating drivers are limited by the equipment and lack of opportunities that they receive (Livingstone, 2007). In essence, the criticism is that the Drive for Diversity program is failing to reach the goal of being a feeder system to NASCAR's "big league." NASCAR's problem in this regard is compounded by the fact that other racing organizations have had more success in diversifying their drivers. The Indy Racing League (IRL) has several female and Hispanic drivers, and African-American drivers have found success in both Formula One and National Hot Rod Association (NHRA) racing (Livingstone, 2007).

To increase its overall fan base, NASCAR has engaged in relatively recent marketing efforts to reach out to fans beyond its traditional base, including middle- and upper-class families, young men and women, and minority groups such as African-Americans and Hispanics (Hugenberg & Hugenberg, 2008). While the diversity initiatives just described represent part of this effort, other initiatives have been undertaken as well. For example, the increasing population of Hispanics in the US has made this an extraordinarily important demographic to NASCAR. In part to gain favor with the U.S. Hispanic market, NASCAR has established NASCAR Mexico, sanctioning a racing series in that country. The hope is that holding races in Mexico will ingratiate the U.S Hispanic market (Mueller, 2008). With such expansion efforts, NASCAR hopes to attract a larger, more diverse base of fans and sponsors in order to solidify and grow its revenue stream.

All of these initiatives are a positive step for NASCAR in building its brand image as minority friendly. However, the criticism of the major initiative (Drive for Diversity) and the greater success of other racing circuits in terms of diversity efforts leave much work to be done in this building effort. In this light, the issue of the Confederate flag remains looming.

Ethical Considerations

The presence of the Confederate flag at NASCAR events not only illuminates a branding challenge, but it also leads to an ethical dilemma. An ethical dilemma is created when two or more important values are in conflict (Hitt, 1990). It can be viewed as competing conceptualizations of the good. In the case of the "to fly or not to fly" the Confederate flag at NASCAR events, the dilemma arises when the values of compassion for a group of people (minorities offended by the flag) conflict with the values of freedom of expression, tradition, and heritage. To allow the flag to fly would oppose the value of compassion for those offended by the flag because of its representation, to them, of racial oppression and intolerance. To ban the flying of the flag would oppose the values of freedom of expression, tradition, and heritage that are inherent in the meaning of the flag as viewed by its supporters. One may consider this dilemma from both a deontological and teleological ethical perspective.

Generally, deontological ethics hold that moral standards should determine action. The deontological perspective focuses on obligation, duty, and moral principles, and suggests that one should do what is right, no matter the consequences (DeSensi & Rosenberg, 2003). The Golden Rule ("Do unto others as you would have them do unto you") is a classic example of deontological ethics. Another example of deontology is Kantian ethics, which holds that moral decisions stem from a very strict sense of duty to moral standards such as justice and respect for others, rather than a consideration of consequences (DeSensi & Rosenberg, 2003). Further, application of Kant's Categorical Imperative, the belief that human conduct should be guided by moral principles and actions and should be considered in the context of universal acceptance (that is, an action could become a general law for all humankind), dictates that one should do the "right thing" based on principles such as respect for others (Malloy, Ross, & Zakus, 2003). From this perspective, one might come to the conclusion that NASCAR's moral obligation is to refrain from allowing the Confederate flag to fly at its events because it shows a lack of respect for those offended by it, and it would not be acceptable if it allowed the flying of other flags hurtful to other groups of people (e.g., Nazi flags).

On the other hand, teleological ethics hold that in behaving ethically, one must consider the consequences of various actions in determining the most ethical course of action. In general, under teleological ethics, the most ethical course of action is the one that results in the greatest good (DeSensi & Rosenberg, 2003). Thus, the utilitarian or teleological viewpoint focuses on consequences and the goodness or badness of an action (Hitt, 1990). The "greatest good for the greatest number of people" maxim would suggest that if 90% of people are unfazed by the flying of the Confederate flag at NASCAR races and feel that it is a "good act," only paying homage to rich Southern heritage and tradition that honors one's ancestors, and only 10% object, viewing it as a "bad act" that represents hatred and oppression, it is ethical for NASCAR to allow the flag to fly.

NASCAR's ethical dilemma can also be considered from the perspective of Kotler's societal marketing concept. This concept maintains that corporations should build social and ethical considerations into their marketing practices and act in the best long-term interests of society (Kotler, 1997). To most, acting in the best long-term interest of society would involve actions that unite rather than divide. Through its diversity initiatives and other marketing efforts that seek to increase minority participation in the business (e.g., minority drivers and minorities in other positions of employment) and attendance at races, NASCAR has clearly begun to heed Kotler's societal marketing concept. These initiatives and efforts, in their ability to unite and build a more diverse community around the sport, are clearly in the best long-term interest of society. However, in refraining from aggressive efforts to eliminate or at least diminish the presence of the Confederate flag at its events, is NASCAR following the societal marketing concept to the extent that it could? Is the Confederate flag hampering NASCAR's diversity efforts, and if so, does its continued presence at NASCAR events detract from these efforts that do fall in line with the societal marketing concept?

Summary

As earlier noted, Miloch (2010) stresses that the ever-changing environment of sport presents brands with distinct opportunities to cultivate and reinforce a specific brand identity, while also presenting unique barriers in brand cultivation. With its growth from a regional, primarily Southern sport to one of national prominence and presence, and its desire to continue this growth, NASCAR faces such branding challenges.

Being stereotypically branded as having a "Southern white male" following and perceived by many consumers and media as being largely the domain of the "redneck" and "good ol' boy" fan, NASCAR has made efforts to distance itself from such a pigeon-holed view, citing its rapid expansion and diversification efforts (Amato et al., 2005; Howe1l, 1997). However, its image as a relatively non-diverse sport, fostered to at least some degree by Confederate symbolism in the form of the Confederate flag, continues to be problematic.

The sport has an image problem when it comes to race. For as hard as it has tried to distance itself from its [S]outhern roots, NASCAR is still widely viewed as a Confederate flag-waving sport, and [Mauricia] Grant's accusations [note: referring to former NASCAR employee Mauricia Grant's accusations of racism and sexism by NASCAR officials] only help perpetuate this stigma ... The difficulty for NASCAR is in proving it isn't as lily white as it appears. (Hart, 2008, para. 2)

Similar concerns were expressed by Wetzel (2006), who states:

To restart its progress, NASCAR must continue to attract new fans in fresh, more diverse markets, many of whom view the Confederate flag as a symbol of racism and oppression. Yet NASCAR doesn't want to alienate its loyal base, many of whom view the waving flags in the infield as a symbol of honor, history and traditional Southern pride. (para. 3)

In expansion, NASCAR continues to face a challenge noted by Bernthal and Regan (2001), in which there is a need to expand its market reach outside of its traditional Southern roots while not leaving its long-time Southern fans with the impression that it somehow cares less about them than it once did. As Wetzel (2006) noted, there is a need to balance appealing to the people who are at the track with the ones who potentially could be. When NASCAR is labeled with certain negative brand image attributes such as racially insensitive, these allegations, whether merited or not, may leave questions in the minds of casual observers, media, and potential fans and sponsors. Hart (2008) reflected this notion in stating, "[f]air or not, accurate or not, NASCAR hasn't been successful enough in giving them reasons to think otherwise" (para. 17).

The indeterminacy of meaning of the Confederate flag as a symbol (racial oppression to some and regional pride to others) combined with the flag's perceived connection to the NASCAR brand leaves NASCAR with a dilemma. For those who view the flag as a symbol of racial oppression, the presence of the flag at NASCAR events likely contributes to their stereotyping of NASCAR as a "redneck" sport. To the extent that potential sponsors hold this view, NASCAR's full sponsorship revenue potential may go unrealized. To the extent that media members hold this view, NASCAR is likely to receive negative publicity in the form of this stereotyping. To the extent that potential new market segments hold this view (e.g., African-Americans), it is unlikely that they will embrace the sport, limiting NASCAR's future growth. Clearly, if NASCAR wants to change this image, it must consider banning the flag from its events and/or engaging in other activities (e.g., banning it from certain prominent track locations, instituting a specific size restriction) to distance itself from it. However, in so doing, it risks offending those fans who view the flag not as a symbol of racial oppression, but a symbol of regional pride.

In sum, the flag presents NASCAR with a clear branding challenge that requires careful deliberation. As an example of its continued presence in the forefront, the Miami-Dade branch of the NAACP threatened to boycott the 2009 Sprint Cup race at Homestead-Miami Motor Speedway due to the expected presence of the flag at the event (Miller, 2009). In 2004, at the same track, the National Association for Minority Race fans held a protest prior to a race, offering American flags to anyone who gave up a Confederate flag (Miller, 2009). The flag is indeed an issue that has lingered over time and continues to do so. While NASCAR prohibits the Confederate flag from appearing on its cars, uniforms, licensed merchandise, and advertisements, the flag still prominently flies at facilities at which its sanctioned events are held. NASCAR's response to this seems to be that this is the tracks' issue, since it only sanctions races at the tracks and does not own or operate them (Miller, 2009). [NASCAR's races take place at tracks owned and operated by International Speedway Corporation (ISC) and Speedway Motorsports, Inc. (SMI).] What this response by NASCAR fails to take into account, however, is that parties important to its expansion goals (e.g., potential sponsors, prospective fans, and the media) see the flag as part of the NASCAR brand, a fact that can't be escaped by deflecting responsibility for its presence at races solely to tracks. Clearly, the tracks and NASCAR rely on each other in a synergistic, mutually beneficial relationship, and thus NASCAR has influence regarding tracks' policies. Addressing the issue of the Confederate flag will require mutual dedication to careful strategic deliberation on the part of NASCAR and its partner facilities.

The importance of carefully addressing the Confederate flag issue is heightened by the fact that NASCAR has recently been faced with drops in television ratings and attendance. For example, NASCAR's 2009 television ratings were down approximately 4.5% from 2008, with total viewership down 6.4% (Horrow & Swatek, 2009). So far in 2010, attendance has declined in nine of the first 10 Sprint Cup races, including double-digit percentage drops at several tracks ("Changes," 2010). These declines in television ratings and attendance serve to highlight the importance that NASCAR must continue to place on effectively attracting new fans in order to continue its long history of growth and success. The continued presence of the Confederate flag at its events, and the associations that this symbol attaches to the NASCAR brand in the minds of many potential new fans, must be an intentional part of NASCAR's strategic deliberations toward that end.

Editor's Note: Teaching notes for this case study are available at www.fitinfotech.com.

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Jason W. Lee, PhD, is an assistant professor of sport management at the University of North Florida. His research interests include sport branding, sport symbolism, and the use of movies as an educational tool.

Matthew J. Bernthal, PhD, is an associate professor in the Department of Sport and Entertainment Management at the University of South Carolina. His research interests lie in the areas of advertising and promotion in sport, consumer behavior in sport/entertainment, and marketing ethics.

Warren A. Whisenant, PhD, is an associate professor of sport administration and the associate chair of the Department of Exercise and Sport Studies at the University of Miami. His research focuses on gender and organizational issues within interscholastic athletics.

Susan Mullane, PhD, is an associate professor of sport administration at the University of Miami. Her research interests include leadership, ethics, academic integrity, and sport ethics.