Corporate Governance and Globalisation: In the context of FIFA scandal

This study analyzes the corporate governance and globalization in the context of the FIFA scandal, exploring the impact of globalization on football and the consequences of the scandal. It discusses the governance policies, corporate social responsibility, and regulatory framework of FIFA.

Corporate Governance and Globalisation:
In the context of FIFA scandal

Table of Contents
Introduction......................................................................................................................................3
Corporate Governance and Globalisation: In the context of FIFA scandal.....................................3
Overview of organization............................................................................................................3
Increasing globalization and its effects........................................................................................3
Increasing pace of corporate governance and its effects.............................................................4
Consequences of the scandal.......................................................................................................5
Lesson Learned............................................................................................................................8
Conclusion.......................................................................................................................................9
References......................................................................................................................................11

INTRODUCTION
The present study is based on the in-depth analysis and evaluation of the corporate governance
and globalization in context with FIFA scandal, the study critically studies about the proclaimed
governance policies, corporate social responsibility, corporate governance and the way they
applied the same in practice are discussed in the study, while emphasizing on the governance
policies by considering its code of conduct and regulatory framework. Along with this, the study
will present all real-time facts related to the FIFA scandal, supported by the valid justification
and analysis.
CORPORATE GOVERNANCE AND GLOBALISATION: IN THE
CONTEXT OF FIFA SCANDAL
Overview of organization
FIFA's (FédérationInternationale de Football Association) is not a not for profit organization
according to the Swiss Civil Code. 19, it has the duty to control the international football. Being
a legal entity, it has not been charged with the US violations. FédérationInternationale
de Football Association’s (FIFA) reflected that their overall mission and vision is to ‘develop the
game, touch the work and build a better future’.
Increasing globalization and its effects
The rapid increase in globalization as well as commercialization of football in last few decades
have emphasized on the corporate sponsorship and marketing values, and the broadcast rights,
with the football items related to sales(Steger, 2017). Further, the superseding indictment claims
that numerous tens of millions of dollars in terms of bribes have been paid in relation with the
FIFA operations and its continental alliance.
The rapid increase and interest evidenced in the football and its marketable success has been
escorted by a set of allegations regarding corruption and cronyism, inclusive of the procedure
whereby host nations were elected for the future World Cup tournaments. Last year, criminal
examination into a series of offences for individual interest and benefit in regards to global
football, comprising the utilization of wire fraud and money laundering were held (Fortunato,

2017). The main rationale for the FIFA held into consideration about the limitation of the
corporate governance of organization. Their main reports into the corporate governance of FIFA
were generated from 2011 to 2012. Most of the recommendations offered by these reports were
primarily avoided by FIFA. These comprised failure to implement time limits to the executive
membership, the establishment of non-executive independent directors into the Executive
Committee of organization, the implementation of best practices, guidelines on the conflict of
interest and higher transparency in the election process of organization.
Globalization of sports is referred to the procedure of the extension of the notion of sport
throughout the world. The sport’s field in the 20th-21st century was influenced by the
globalization procedure as a whole, it not only influence the manner wherein sports are carried
out and arranged, but also how they are recognized and their importance on today’s world.
Globalization creates negative as well as positive effects on sports, in reflection with the FIFA, it
created possible for various type of criminal activity. Alleged corruptions made by official of the
global sport organization and association might result in controversies related to the organization
of sport events. Large-scale institutions might use this as a tool for money laundering, so in the
case of FIFA.
Globalization needs the establishment of new regulatory means to uphold actors liable and
accountable. With no doubt, the FIFA’s entire management, which is a massive international
firm, is a difficult task, and the issues can take place in the process (Dowling, Leopkey and
Smith, 2018). The arousal of contemporary global sport governance network can create a
substantial impact over the stakeholder’s operations in the network in context with good
governance.
Increasing pace of corporate governance and its effects
Corporate governance has considered as one of the fundamental goals and requirements for
governing a modern organization. Corporate is all about generation of wealth and management
of risk and these duties needing constant and simultaneous performance which were overlooked
by FIFA. The implementation of effective corporate governance offers more realistic operational
system and management accountability. As a result, good corporate governance can avoid the
emerging financial crises while offers the credibility and consistency in a financial system for the
better maintenance of the confidence of investor(Mandel, 2016). There was a lack of effective

corporate governance in the FIFA corporate standards, and it failed to protect the interest of
shareholders thereof. It also lagged in systematic transparency and faced ineffective board
management and regulatory framework.
The increasing pace of corporate governance rules throughout the world is also forcing
companies to concentrate on anti-corruption measures being an element of their means to reflect
corporate sustainability and to secure their brand image and stakeholder interest as a whole.
However, their anti-corruption system are increasing at a great extent of integrating issues and
ethics and a lot of investment manager are considering these system as a piece of evidence that
the company assumes good and organized business practices (Chappelet, 2016). It can be stated
that business can experience higher business as well as ethical issues, risks and costs, if they do
not succeed in effectively combating the corruption in all forms. Every company, whether it is
big or small, are prone to corruption, and the possibility for damage is given.
Another aspect of the corporate governance that the reforms of FIFA have not adopted is the
role, responsibilities and appointment of independent non-executive directors. The corporate
governance code draws that the corporate board must comprise of a proper mix of executive as
well as non-executive directors, wherein most of them shall be independent. Conversely, external
and independent human resource, can make use of their experience to make contribution towards
the Council’s organizational strategy, while challenging proposals and measuring the Council’
performance. Moreover, the Council’s size wasextendedbythirty seven members, and the
corporate governance code states that the board must be of a size that is adequate for meeting the
business requirements not being too large to be unmanageable(Struebing, 2018). The allegations
of bribery, money laundering, and faraud to corruption of issue of media and marketing rights for
the games of FIFA, were estimated as $150 million inclusive of least $110 million in bribes.
Consequences of the scandal
The efforts of FIFA to comply to, support and meet this ideology of its strategy have been
disadvantaged by allegations of improper conduct and practices over the years. These scandals,
bribery, and financial corruptions can be prevented or combated by a more vigorous governance
regime. It seems that the checks and balances that have been positioned at the managerial level
of FIFA have failed to effectively govern on organization whose influence has increased

exponential as the globalization within football is considering continual globalization(Meier and
Garcia, 2015).
The FBI officials in association with the Swiss authorities charged seven out of nine FIFA
officials experiencing extradition and charges on counts that are inclusive of money laundering,
bribery, wire fraud and racketeering. In addition, five total executive within sport marketing as
well as broadcast company also accused to be in this set of indictments. They were likely to
retain the rules that align honesty in the soccer. Rather, they put corruption in the worldwide
soccer business to deliver their own interest (Naheem, 2016).
The reputation of FIFA has been adversely impacted in recent years; it has experienced severe
allegations of bribery around the globe. The former long-term President of FIFA (Sepp Blatter)
has been disqualified from all the related activities of football for the disloyal payments made by
him to the Michel Platini.The disaster over the Gracia report, and the latest invasion of the FIFA
in the year 2015, has come up with the credibility of the organization to a reduced level. There
was no need for the radical reform of the governance process been so obligatory for a global
organizational that affects several people on a global basis(Quinn, 2017). On the other hand,
FIFA only conquer a nation via soccer and exploit on the market opportunities accessible upon
entry. In present era, globalization is about business, not a mere opportunity meant for players to
transfer to other global leagues but the change for the members of FIFA to extract a nation to
derive power and influence. The dominance of business is the core; economic contribution is
kept aside however. FIFA is said to be the world governing body of football (Chatzigianni,
2018). FIFA has been outbreak with the corruption of allegations over the past few years, and the
top executive of FIFA were accused by law enforcement agencies of being engaged in the
immense corruption, for their personal benefit through bribes. If or if not the globalization is still
charismatic as it was before in 1990s, allowing individual to turn out to be global citizens and
shifting global associations in aligned with the a win-win situation, and stays as an open
questions. However, the latest scandal overwhelmed the world governing body of football;FIFA
has indicated observers that chaos and corruption can easily take place within the global sphere.
There is no presence of world government to adopt the type of oversight that is well arranged
and reflects exert on a countrywide level (Crowther and Seifi, 2017).

FIFA, being an organization is a body that is trying to triumph over nations but not in a harsh
military manner, but to moralize or share aspects that is promoted by games, to improvise the
awareness of the sport is in binding and reducing prejudice that divides the minority groups of a
country(Webber, 2016). Lowering the ethnic barriers, improvising and enlarging the extent of
global communication and the idea of cross-border player that might possess reservations
regarding playing of championship league teams, in spite of the uncertainties regarding former
country to country hostilities are liberate to sign with clubs within an open market economy.
However, globalization can be threatening in certain cases, in a situation when there are cultural
issues for the migration of players, such as coming from poor country to rich country or vice
versa, the major hazard can come in the player management safety (O’Boyle, 2017).
Thus, it is all about sharing of profits equitably of the game from the globalization. FIFA is
required to control the game, to re-share its wealth and to make correction in inequalities.
However, FIFA is the recent incident in an increasing mismatch between globalization as a
geopolitical breakup and an ideology. Over the time, the organizations established to support and
supervise soccer within localities and area around the world, inclusive of the US, became
entangled with each other and with the sport marketing corporate that allow then to produce
unmatched profits via media rights sale to soccer matches. There was emergence of corruption
was there in enterprise and flourished in the same context(Zeidan and Fauser, 2015). The
corporate governance concept is entirely foreign to the FIFA and there are no restrictions or
control on how billions of dollars were disbursed by Blatter. At the same time, the corporate
governance standards haveestablished considerably since 1990, FIFA is completely blameless of
any restrictions on the operations of Blatter. As noted, indeed, the former vice president of FIFA
has accused that even the Executive Committee was not aware of the salary and benefits paid by
Blatter to his own (Arcioni, Bayle and Rayner, 2018). Recently, Blatter has stated his overall
conceptional lack or being in interest with, agreed corporate governance standards, inclusive of
the fiduciary duties owned by FIFA officials to FIFA and various stakeholders. In addition, the
president also skipped the growth in corporate governance globally over the past 25 years.
In a corrupted environment, FIFA was in pursuit of following the prospect of the future decisions
that seem favorable that can be increased of the votes of respective members are designated in a
tactic manner. Further, the inter-dependence among the Executive Committee and its member

associations raised severe independence problems, these problems have resulted and contributed
in actions namely; in the year 2015, 7 FIFA officials were arrested in regards with committing
money laundering, fraud and bribery to corrupt the issue of FIFA games marketing rights and
media in the CONCACAF region. Further, in the year 2011, a member who belongs from
successful 2022 Qatari World Cup bid arrived as a whistle-blower. In this way, it was claimed
by the member that $1.5m were paid by Qatar to the president of African Football Confederation
(IssaHayatou), a member of Ivory Coast FIFA (Jacques Anouma), and to the suspended official
of Nigeria (Amos Adamu) to make voting for Qatar. The main reasons for the fall of FIFA were
failing corporate structure, and the manner by which it address with personal dishonesty to
improvise accountability and transparency. The biggest aspect that led to corruption for FIFA
lies in its structure.
In consideration with the FIFA scandal, it can be demonstrated that lack of a broad approach and
transparency at all levels of decision making can harm the integrity and reliability of the game,
and the contemporary football industry is required to be placed under considerations from a
series of various stakeholder perspectives (Chappelet, 2018).
Lesson Learned
FIFA scandal left a number of lessons, as it states that governance must always be set on top, it
must be optimally ensured that good governance is kept in place. In the case of FIFA, the senior
executive were personally involved in alleged corruption, it was very important for organization
to integrate such corporate culture that keep a watch and close scrutiny on such activities(Woods
and Stokes, 2019). In addition, there was a lack of transparency present in the organization that
not only limited the ability of organization to avoid governance failure but also limited its ability
to protect itself from the corruption allegations and maintain credibility and trust with
stakeholders. It can be said that FIFA has a global footprint, and its activities in one market are
generally subjected to the jurisdiction of regulators in another. In the case of FIFA, the American
banking systems were used by defendants, along with the hosting of meetings in the US to
prepare their alleged activities (Shand, 2017). Furthermore, the governance failures at an
institution can create wide-ranging impacts on corporate stakeholder, its image and reputation.
The allegations levied at FIFA have put direct pressure on large sponsor to take immediate

action, reflecting severe concerns on the developments. Their reputations are intertwined to that
of the internal football.
CONCLUSION
By considering the above analysis it can be concluded that , significant and effects of sport
mega- event on host countries, inclusive of the lasting environmental challenges and high cost,
as reflected in the case: FédérationInternationale de Football Association (FIFA) starts to execute
positive corporate social responsibility plans while decreasing unconstructive insights. Even with
the developing body of literature examining the performance of sport CSR, investigation is done
on the procedure of how worldwide governing sport a organizations execute and approve such
plans to reproduce the society without lack. The investigation is done to know about the gap by
discovering how FIFA modified its CSR plans for the World Cup of 2010 in South Africa and
2014 event in Brazil.
Appealing in CSR always seems to be an intimidating job. On the other hand For FIFA, this
confront was compounded as a consequence of the host nations’ multifaceted communal,
political, and financial concerns, beside with disbelieved surrounding FIFA’s efforts due to its
history of fraudulence and dishonesty, which newly ended in an managerial disgrace that
encouraged arrests of high-ranking administrators and impermanent expulsion of its previous
president. For analyzing the CSR by the means of a critical lens, we describe from
interdisciplinary investigation and utilize a multi-case theory approach to examine FIFA’s CSR
plans, in conflict that such hard work mainly failed to reproduce cultural deliberationprovided
that small advantage to South AfricansandBrazilians.While working,Zaharna’s in-awareness
approach can be created by us for public relations by integrating it with significant CSR
investigation, representing the requirement for supporting association to go behind an in-
awareness approach at the time of working for worldwide CSR even as too accepting
participatory approaches, that connect members of the exaggerated society to boost and maintain
the optimistic reimbursement of such plans.
According to the current FIFA scandal it has been verified that the unrestrained corruption
threatens valued cultural institutions and traditions which individuals hold. Simultaneously, the
complication of the lawful compliance environment in comparison with anti-money laundering,

anti-corruption, and additional illicit actions that the authentic private sector has to compete with
has enlarged exponentially. Definitely there is about an unspoken ‘compliance paralysis’ as
many risk advisors, lawyers, and auditors pertain limited time to examine dealings complicated
by the web of demands that fulfillment has to be found upon industry.

REFERENCES
Arcioni, S., Bayle, E. and Rayner, H., 2018. Sepp Blatter: Wielding Power Through FIFA.
In Global Sport Leaders (pp. 301-335). Palgrave Macmillan, Cham.
Chappelet, J.L., 2016. Autonomy and governance: Necessary bedfellows in the fight against
corruption in sport. Global Corruption Report 2015: Sport, pp.45-60.
Chappelet, J.L., 2018. Beyond governance: The need to improve the regulation of international
sport. Sport in Society, 21(5), pp.724-734.
Chatzigianni, E., 2018. Global sport governance: globalizing the globalized. Sport in
Society, 21(9), pp.1454-1482.
Crowther, D. and Seifi, S., 2017. Modern Organisational Governance: Re-Examining
Governance: The Evidence. In Modern Organisational Governance (pp. 3-15). Emerald
Publishing Limited.
Dowling, M., Leopkey, B. and Smith, L., 2018. Governance in Sport: A Scoping
Review. Journal of Sport Management, 32(5), pp.438-451.
Fortunato, J.A., 2017. The FIFA crisis: Examining sponsor response options. Journal of
Contingencies and Crisis Management, 25(2), pp.68-78.
Mandel, A., 2016. Fixing Soccer: Changing FIFA's Corporate Governance Structure in Response
to the Current FIFA Corruption Scandal. Cardozo Arts & Ent. LJ, 35, p.449.
Meier, H.E. and Garcia, B., 2015. Protecting private transnational authority against public
intervention: FIFA's power over national governments. Public Administration, 93(4), pp.890-
906.
Naheem, M.A., 2016. Internal audit function and AML compliance: the globalisation of the
internal audit function. Journal of Money Laundering Control, 19(4), pp.459-469.
O’Boyle, I., 2017. Sport governance. Understanding Sport Management: International
perspectives, p.145.

Quinn, P.S., 2017. Sponsoring Corruption. Md. J. Int'l L., 32, p.221.
Shand, R., 2017. Sport, community regeneration, governance and development: a comparative
global perspective. Routledge.
Steger, M.B., 2017. Globalization: A very short introduction(Vol. 86). Oxford University Press.
Struebing, J.E., 2018. Federal Criminal Law and International Corruption: An Appraisal of the
FIFA Prosecution. New Criminal Law Review: In International and Interdisciplinary
Journal, 21(1), pp.1-56.
Webber, M., 2016. Corporate Governance and Corporate Social Responsibility of Multinational
Enterprises and Transnational Law–The FIFA Case. TLI Think.
Woods, C.L. and Stokes, A.Q., 2019. ‘For the game, for the world’: An analysis of FIFA’s CSR
initiatives. Public Relations Inquiry, 8(1), pp.49-85.
Zeidan, O.S. and Fauser, S.G., 2015. Corporate governance and corporate social responsibility–
the case of FIFA. Problems and Perspectives in Management, 13(2), pp.183-192.