Corporate Governance and Globalization in Context of FIFA Scandal

Corporate Governance and Globalization 1.
Corporate Governance and Globalization in Context of FIFA Scandal
Name
Institution

Corporate Governance and Globalization 2.
Introduction
The concepts of corporate Governance and globalization have become very critical in
modern business and society at large. Globalization is a significant phenomenon that has affected
the economies of different nations, business life as well as the social and environmental aspects
of life in different ways and therefore impacting changes to most corporations or organizations
(1). However, without proper governance structure, corporation and organizations are not able to
achieve their objectives given the nature of globalization (2). The need for corporate governance
is because corporations are a vital part of our society and therefore need to be appropriately
organized through the implementation of various social norms and principles which will govern
the conduct and behavior of the organizations. Corporate governance as defined by ISO FDIS
26000 is a system by which corporate organizations can make as well as implement decisions in
pursuit of organization or organizational goals and objectives (3). In this case, it is considered to
be the most critical aspect or factor of enabling corporations to take responsibility to the impacts
of its decisions as well as to integrate the elements of corporate social responsibility throughout
the organization and in its relationships outside the organization. Among the very significant
organizations in the world of sports is the Federation Internationale de Football Association
1 Bayle, E. (2015). Fifa-gate: an opportunity to clean up international sports governance. Soccer & society
[1-2].
2 Jorge, G. (2014). Fixing FIFA: The Experience of the Independent Governance Committee. Sw. J. Int'l
L., 21, [165].
3 Davies, A. (2016). The globalisation of corporate governance: The challenge of clashing cultures.
Routledge.

Corporate Governance and Globalization 3.
(FIFA) whose overall mission is to develop the game, touch the world and build a better future.
With increased globalization effects the organization has been associated with multiple scandals
in its attempts to achieve corporate governance based on several allegations of inappropriate
behaviors and practices which are contrary to the corporate governance principles of
transparency, fairness, accountability, and responsibility (4). It is the responsibility of every
corporate organization to operate under these principles in their operations in pursuit of its goals
and objectives. The purpose of this study is, therefore, to provide an understanding of corporate
governance and globalization in the context of the FIFA Scandal. This will contribute
significantly to the understanding of the relationship between the two concepts and how they
impact corporations in terms of governance as well as why they are critical aspects in the
corporate world and the society at large.
Brief Analysis of the Federation Internationale de Football Association (FIFA)
The world of sports is a point of entertainment for many people in the global arena, an
aspect that makes it a vital industry for everyone. FIFA is an organization which was established
in Zurich Switzerland with sole responsibility of governing football activities around the world.
Its vision is, therefore, to promote the game of football, protect its integrity and bring the game to
all (5). Its overall mission is to develop the game of football, touch the world and build a better
future. Through globalization, the organization has been able to develop international influence
in pursuit of its objectives. However its efforts to adhere to its mission and vision statements, it
4 Hölzen, M., & Meier, H. E. (2019). Do football consumers care about sport governance? An analysis of
social media responses to the recent FIFA scandal. Journal of Global Sport Management, 4[1], [97-120].
5 Verver, J. (2015). Lessons from the FIFA corruption scandal. Risk Management, 62[7], [16].

Corporate Governance and Globalization 4.
has been hampered by allegations of inappropriate behaviors and practices over many years
which have culminated to a state of high profile and well established scandals attributed to
financial corruption and bribery with the most notable events been the bidding and award process
of the 2018 and 2022 World Cups (6). However, it is possible that all these could have been
avoided or mitigated by a robust governance regime that upholds the principles of effective
corporate governance including transparency, accountability, responsibility, and fairness in its
operation or decision making and implementation process. Due to the lack of proper governance,
the globalization impact on the organization has therefore impacted the society at large and
especially the football society globally (7). With these scandals it would appear that the Checks
and balances at the organization management level were a total failure and could not
appropriately regulate an organization whose power and influence has rapidly increased as
commercialization and globalization of football continues to grow. Through the reforms
discussed above the organization has been able to enhance its corporate governance initiatives
and promote organizational credibility. However, there is still a need to develop or to work
towards achieving transparency, accountability, and fairness in the organization to enhance FIFA
to transform the society of the world with a football game. There is, therefore, a significant need
for radical corporate behavioral, cultural and governance changes in organizations which will
only be achieved by adopting the appropriate corporate governance standards that will help the
organization improve in its performance despite the growing impact of globalization.
6 Leary, M. (2017). Where Should They Go: Why the United States Should Have Jurisdiction over Those
Being Charged in the FIFA Corruption Scandal. Loy. LA Int'l & Comp. L. Rev., [40 -51].
7 Bishop, M. L., & Cooper, A. F. (2018). The FIFA Scandal and the Distorted Influence of Small States.
Global Governance, 24(1), [21-40].