FIFA Scandal: Key Affected Stakeholders
Most of the times businesses find themselves in dilemma on deciding what is morally right. According to Shaw, et al. (2013, p. 26) there are many analytical and reasoning skills that business can apply to resolve these issues once they occur. To avoid the occurrence of unethical business related issues, the managers should ensure there are always the concepts of honesty and integrity and fair practices in place. However, this is not case for the FIFA scandal that has largely affected its stakeholders.
The corruption scandal at FIFA evidently eroded the dignity of the federation, and in consequently affected the operations and affairs with the outside business and corporate environment. While it is debatable about the extent of the moral rot and the parties involved with pending investigations, the most affected stakeholders are the sponsors. Despite wild allegations that speculated that viewership of the premier football matches was at stake, many experts including Professor David Mayer at Michigan Ross are objected to the postulation. He says, âMy guess is it will not impact viewership, and if there is money to be made will not have a big impact on businesses who support the World Cupâ, which resoundingly assures the federationâs sponsorship, since it is the backbone of the trade (Michigan Ross 2015 p. 32).
As this paper digs deeper into the controversies to highlight the degree of breach of regulations and associated impact to the affected stakeholders, the plain truth reveals itself.
- With multibillion sponsor partners such as Coca Cola and Adidas having expressed their dire concerns with the malice at the heart of FIFA, the federation must be nuts to put its house in order before misery catches up.
- On the other hand, McDonaldâs is unsettled about the same, owing to the fact that Americans are zero tolerant to subverted ethics and anti-corruption (Wilson 2015, p. 49-51).
- In addition to the three above, Sonny, Hyundai, Adidas among others have as well threatened to loosen ties with the ill-fated federation, should justice and transparency be denied (Karr 2016, p. 23).
- Not to forget, the top officials of the governing council have as well been affected, given that Swiss authorities arrested six FIFA executives in the annual meeting in Zurich, who will later be charged with misappropriation of funds (McFarland 2015, p. 33).
Since the allegations and consequent pursue of impunity, FIFA has realized that it owes its shareholders a great deal of responsibility. Thierry Weil, the Director of Marketing expressed his regrets over breached rights to the partners and reaffirmed allegiance to the law for the purpose of sustained activities of the federation, as well as its responsibility to the millions of fans around the world (Petriglieri 2015, p. 121). Lastly, some member states to the federation are as well guilty of the dishonesty that almost paralyzed its operations and reputation. Notably, Russia was hinted to have participated in the vice that saw funds exchange hands in return for favor. For instance, Putin must have played a part in order to have the 2018 edition hosted in Moscow, for both prestige and economic reasons (Bremmer 2015). Ultimately, the leadership crisis that was just unveiled under Sepp Blatterâs tenure has mostly affected stakeholders, members and randy executives who might be locked behind bars when found guilty.