Entities who believe they align well with other businesses could become the business’s sponsors. Alternatively, the sponsor could also believe that partnering with the business in the form of a sponsorship could help their own business. The agreement usually involves financial support or the provision of goods and services for use by the business being sponsored.
For example…
Take big banks like Westpac or HSBC. They sponsor a range of businesses and entities from educational institutions to sports teams and real estate agencies. You could guess that supporting these types of businesses would help increase visibility for the banks and bring more business. However, these banks and many others also sponsor humanitarian causes or charities to help fulfil their corporate responsibilities.
