FIFA Scandal and Affected Stakeholders

This assignment analyzes the impact of the FIFA corruption scandal on various stakeholders. It examines the concerns of sponsors such as Coca-Cola and Adidas, the potential repercussions for member states like Russia, and the legal ramifications faced by top FIFA officials. The paper delves into the ethical breaches and financial misconduct that led to this crisis and discusses the efforts made by FIFA to address the situation.

FIFA SCANDAL CORRUPTION SCANDAL 1
FIFA SCANDAL – KEY AFFECTED STAKEHOLDERS
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FIFA SCANDAL CORRUPTION SCANDAL 2
FIFA Scandal – Key Affected Stakeholders
Most of the times businesses find themselves in a 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 the case for the FIFA scandal that has
largely affected its stakeholders.
The corruption scandal at FIFA evidently eroded the dignity of the federation, and
inconsequently 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, “My
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 Cup”, which resoundingly assures the federation’s
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.

FIFA SCANDAL CORRUPTION SCANDAL 3
 On the other hand, McDonald's is unsettled about the same, because 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 be 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 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 of 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 a favor. For instance,
Putin must have played a part 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 Blatter’s tenure has mostly affected stakeholders, members and randy executives who
might be locked behind bars when found guilty.

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Reference List
Bremmer, I. June 2015. “These Are the 5 Facts That Explain the FIFA Scandal”. Time. Available
from http://time.com/3910054/fifa-scandal-sepp-blatter/ [24 September 2017]
Karr, B. March 2016. "FIFA and the Stakeholders' Rights to Responsibility." Linked In. vol. 46,
no. 18, pp 18-25.
Mayer, D. and Schipani, C. 2015. "The FIFA Scandal — Ethics, Cost, and Relativism."
Michigan Ross Publication. University of Michigan Ross School of Business. Vol. 23, no.5,
pp30-38.
McFarland, K. may 2015. "Everything You Need to Know About FIFA's Corruption Scandal."
Wired.com. available at https://www.wired.com/2015/05/fifa-scandal-explained/ [24 September
2017].
Petriglieri, J. June 2015. "How a FIFA-Like Scandal Affects Your Talent Pipeline." Harvard
Business Review. Vol. 112, no.22 pp 119-128.
Shaw, W. H., Barry, V. & Sansbury, G., 2013. Oral issues in business. 2nd ed. South Melbourne:
Victoria Cengage Learning Australia.
Wilson, B. May 2015. "FIFA Scandal 'A Disaster' for Sponsors." BBC News. May 2015. Pp 48-
61.