Corporate Governance and Globalisation: In the context of FIFA scandal

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