Corporate Governance and Data Protection at Sports Direct Fitness

This report provides a comprehensive analysis of corporate governance issues faced by Sports Direct Fitness, a fitness company operating in a competitive market. It identifies key problems, including ineffective decision-making, inadequate data privacy measures, and the impact of external factors like COVID-19 and Brexit. The report aims to determine appropriate corporate governance strategies to address these challenges, specifically focusing on data protection. It includes a literature review that explores the issues, solutions, and the importance of data privacy in the context of corporate governance. The research methodology involves a critical review of research outcomes, leading to recommendations and an action plan designed to improve the company's governance structure, enhance data security, and mitigate associated risks. The report emphasizes the importance of stakeholder engagement and transparency in building trust and ensuring the long-term success of Sports Direct Fitness. This report is valuable for students and professionals interested in business development and corporate governance.

SPORTS DIRECT FITNESS

Contents
INTRODUCTION.....................................................................................................................................3
Background................................................................................................................................................3
Review of the Problem..............................................................................................................................3
Aims and Objectives..................................................................................................................................4
Aim..........................................................................................................................................................4
Objectives................................................................................................................................................4
Literature Review......................................................................................................................................4
Identify the issues of corporate governance faced by Sports Direct Fitness............................................4
To determine the solutions to address the issue that the company is facing.............................................6
To obtain a better understanding of the issue related to privacy and protection of data...........................6
To develop an action plan to address the issues that Sports Direct Fitness has been facing due to
inappropriate corporate governance.........................................................................................................7
Research Methods.....................................................................................................................................8
Critical review of research outcomes.....................................................................................................10
Recommendation and Action Plan.........................................................................................................13
Recommendation...................................................................................................................................13
Action Plan............................................................................................................................................14
REFERENCES........................................................................................................................................17
Appendix..................................................................................................................................................20

INTRODUCTION
The main aim of the respective project is to determine appropriate strategies of corporate
governance for Sports Direct Fitness in order to overcome the issue of privacy and data protection.
Corporate governance within an organization can be defined as a set of rules and regulations that guide
the organization as well as its staff members. Also, it is a rule book which allows companies to assure that
they are serving the needs of their stakeholders, shareholders, management team and consumers
appropriately and responsibly, when also meeting the organization’s short- and long-term goals. It is
important for an organization because it enables it to achieve their goals and objectives and also control
the risks in an effective manner (Ishihara, T. and et. al., 2018). The respective report is based on Sports
Direct Fitness, which is a fitness company and offers a wide range of sports and fitness related products
for both men as well as women. The company is currently dealing with issues in its corporate governance,
the company is not able to manage its risks appropriately (Shive and Forster, 2020). Due to not being able
to maintain the privacy of the data available within the company effectively, its overall performance is
getting affected and the report explains why this issue is important. The report will explain about the
discussion of the primary and secondary research, critical review of outcomes of the research and
recommendations or action plan.
Background
The fitness market is one of the most competitive industries and has grown to a great extent over
the recent years. Sports Direct Fitness is newest company of the international retail giant which opening
brand new gyms and making considerable investment in some exiting sites; they will have new ranges of
equipment, larger free weight areas, functional training zones, more team exercise and a wide choice of
classes (Sports Direct Fitness. 2020). The company is currently focussing on enhancing the experience
for its customers in order to provide them with a better experience and thus, gain their loyalty. Health and
fitness clubs offer their customers with the infrastructure for his or her exercises and bodily interest in
exchange for a membership fee. For any business to be effective internationally, it is important for it to
make sure that the corporate governance of the company is structured.
Review of the Problem
The respective company Sports Direct is facing issues with its corporate governance due to which
the board of directors is not able to make effective decisions and implement strategies. The company is
not able to maintain the privacy of its employees within the workplace. the company does not have a team
to manage the cyber security which can pose serious risk to the company (Al-ahdal and et.al., 2020). The

recent outbreak of Covid-19 as well as Brexit are some examples of the factors that are affecting the
corporate governance of the company (Solomon, 2020). There are many companies that offer sports and
fitness related products to the customers. Due to this, the respective company has been facing a lot of
competition in the market. Today, corporate governance is among the main priorities for any business.
But the respective company does not have a proper corporate governance currently. Therefore, there is a
need to review the problem and develop effective strategies so as to overcome the problem.
Aims and Objectives
Aim
“To determine appropriate strategies of corporate governance for Sports Direct Fitness in order to
overcome the issue of privacy and data protection.”
Objectives
 To identify the issues of corporate governance faced by Sports Direct Fitness.
 To determine the solutions to address the issue that the company is facing.
 To obtain a better understanding of the issue related to privacy and protection of data.
 To develop an action plan to address the issues that Sports Direct Fitness has been facing due to
inappropriate corporate governance.
Literature Review
Identify the issues of corporate governance faced by Sports Direct Fitness
As per the opinions of James Chen, corporate governance refers to the system of practice, rules
and processes thathave been opted viaorganization to control and direct their business in effective manner
(Corporate Governance Definition, 2021). The corporate governance refers to the process related with
balancing stakeholder’sinterest of the organization.The corporate governanceaids within forming the
framework that will further assist firm within attainment of the objectives, the framework comprises
ofeach sphere that involvesinternal control along with action plan for corporate disclosure along with
performance measurement.The term named governance means set ofcontrol,resolution, rules and policies
that are kept in the place for furnishing direction for the specific corporate behavior (Al-Bassam and
et.al., 2018). Therefore, when this term is merged with corporate then this implies that specific structure is
being opted via organization for guiding, monitoring and controlling functionalities of the firm in
appropriate manner.Corporate governance is critical for the investors as this will provideSports
DirectFitness withspecific directions along with business integrity. It is identified that enhanced corporate
strategies will yield firm within building up trust with the community and their investorsthrough which

financial viability can be generatedfor having longinvestmentopportunities that will lead market to
participate.
The boardof directors must take into account the primary stakeholders that possess the
capabilities forinfluencing corporate governance.In addition to this, directors must be elected via
shareholders that will represent shareholders of the Sports Direct Fitness. The board ofdirectors are
accountable for making sure that relevant corporate governance policies have beenincorporated with
corporate strategies, accountability, risk management, transparency along with ensuringthat ethical
business practices are being followed by them. On the other hand, it has been identified that corporate
governance implies integration of different processes, laws or rules that will lead business to operate,
control as well as regulate their different activities (Al-Rahahleh, 2017). Here, the corporate governance
comprises of internal as well external factors such as operational risk, credit risk etc. that directly create
an impact on the stakeholders such as suppliers, shareholders, management and their customers. This is
accountable for furnishing patterns related with corporate and activities that are carried out within the
organization and also ensure that they are controlled via management.
Accountability: Corporate governance is accountable for furnishing support for carrying out roles
along with responsibilities to employees according to their liabilities for performing their actions.
Furthermore, it also provides significant contributions for improvisations of business operations flow in
ethical and right manner. This liability further support organizations within making relevant decisions for
carrying out good work and also punishment for the misconduct. The management of Sports Direct
Fitness is accountable for maintaining the privacy of the data relating to the employees and protecting the
same from any kind of theft or uncertainty.
Public acceptance: The concept of corporate governance is associated with transparency
principles with work that is carried out. So, when general public as well as stakeholders will have access
to the information then support must be provided for building up trust along with affirmative image for
the community (Anand, 2017). But at the same time, it is important to keep the important information
private and confidential. Any information relating to the project that is being undertaken by the company,
should be shared with the team members as well as different stakeholders in an effective manner.
Lowering risk: Through efficacious management, the corporate governance of the organization
will lead to minimize incidents associated with frauds, scandals and criminal liabilities. This have liability
for identification of issues along with causes through which actions can be taken (Zubeltzu‐Jaka,
Andicoechea‐Arondo and Alvarez Etxeberria, 2018). With the effective management of the information,
the company can bring down the risk that is associated with its overall performance getting impacted.

To determine the solutions to address the issue that the company is facing
Secondary data impliesthe information that has been attained fromthe previous work carried out
by different authors (Aureli and et.al., 2020). By conducting the secondary data collection assessment, it
has been recognized that corporate governance is considered to be a primary part of an enterprise that
offers a structure consisting of laws, values and policies that guide corporate actions and also help align
business operations in the right direction (Vijayakumaran and Vijayakumaran, 2019). For conducting the
secondary investigation effectively the competent analysis method has been taken into consideration as it
support in explaining the information after analysis in effective manner. Ineffective corporate governance
can have a negative impact on the operations of the company.
This have been analyzed that the problems takes place due to issues associated with lack ofproper
accountabilities, inadequate structureof corporate governance and transparency issues that they lack
(Srivastava and Kathuria, 2020). In addition to this, Sports Direct Fitness must emphasize
onimprovisation of the corporategovernance structure of the corporate governance through which
transparency can be attained within the operationsthat are being conducted by the organization within the
marketplace (Bobillo, Rodríguez‐Sanz and Tejerina‐Gaite, 2018). This involves the major aspect that is
having consent from the authorities and shareholders. It is suggested that organizationhave to identify all
the possibilities that might lead them to have pessimistic impact and fro the same particular
committeemust be formulated who will look into the problems faced by organization. In addition to this,
the culprit who is behind the certain loss can also be identified and according to the corporate governance
strategies further actions can be carried out.
To obtain a better understanding of the issue related to privacy and protection of data
Corporate governance have critical role with reference to carrying out their functions through
which work can be executed in an appropriate manner. The concept of corporate governance is
accountable for management of balance that prevails among welfare of the stakeholders that are
associated with Sports Direct Fitness. The financial performance of the Sports Direct Fitness was
impacted due to Covid-19 as well as while dealing with competition that prevails in the market due to
which the overall profitability was dropped. This in turn also influenced shares of the investors and
thereby revenue of firm have also declined that further minimized returns of the shareholders (Caskey and
Laux, 2017). This event have created a strong impact on the shareholder dissatisfaction as the
organization gave certain discounts to the people without having prior discussion with all the
shareholders. This made them dissatisfied as this was only acknowledged by them after the loss that have
been incurred or decisions that have been already taken up by the management of the organization. It can

be regarded as big step taken by Sports Direct Fitness that lead to decline within revenue and in turn
affected return of the shareholders.
Operations that are carried out in the organisation also lead to make sure that stakeholders are
connected with interest when certain decisions are made and activities are carried out under corporate
governance as this creates direct impact on satisfaction levels of stakeholders of Sports Direct Fitness.
Therefore, the activities that are carried out in the firm are conducted by taking into account all the
stakeholders and having formal discussion with respect to the same (Correa-Garcia, Garcia-Benau and
Garcia-Meca, 2020). The rationale behind doing so is to acknowledge the impact that will be created by
taking effective decisions to manage the privacy of the data. An instance can be taken, like firm have
opted to provide discounts to their customers without consulting board of members or other associated
shareholders.
There is a high risk for companies as their data might get affected in the age of digitisation and therefore,
it is important for them to develop a team that has a sound understanding of the different fundamentals of
cyber security (Demirag, 2018). Data protection and privacy is all about securing the data of the company
against any unauthorized access. If the data is not managed in an effective manner, it can pose difficulties
for the company to operate in an effective manner.
To develop an action plan to address the issues that Sports Direct Fitness has been facing due to
inappropriate corporate governance
According to the perception of Jane Muir, the management of an organization must evaluate and
assess the potential risks that are associated with handling the data (5 Common Issues That Arise in
Corporate Governance. 2021). Corporate governance have critical role within management of the
operations in efficacious manner as well as governing the operations in order to make sure that operations
arecarried out in an adequate way. The Sports Direct Fitness needs to ensure that efficacious governance
system is utilized so that fraud and wrong practices such as uncertainty related to the data protection are
avoided (Farhan, Obaid and Azlan, 2017). Furthermore, if such actions are taken then as soon as they are
detected then they must be reported to the higher officials so that adequate actions can be taken for
dealing with the same. In addition to this, for avoiding hidden or fraudulent practices the higher
authorities of Sports Direct Fitness must emphasize on development of the efficacious corporate
governance system through which stakeholders will be satisfied. In thiscontext, the action plan is
specified beneath: This can include theft of the data and this can further impact the recruitment process in
the company as well as its overall strategy in a negative manner.

Transparency: The emphasis must be laid on having more and more transparency by Sports
Direct Fitness where the actions that decision maker is thinking to take must be communicated with all
the liable authorities such as the managers or the team leaders to have their consent. As per the discussion
that will take place among them the actions can be taken so that efficiency can be attained and desired
satisfaction levels can also be maintained. There will bea mutual consent and in any case if failure will
occur the then the blame game will not be played instead each will work tocope up with the loss that have
been incurred.
Formulate different committees: Sports Direct Fitness needs to emphasize on creating different team for
carrying out corporate governance practices with the individuals that do not have any interest within the
organizational profits (Fenwick and Vermeulen, 2019). This can help in making informed decisions and
the members of the team are responsible for regular evaluation of the performance along with different
operations that will be implemented in the organization. This is in turn will present adequate information
associated with things that will be conducted within the Sports Direct Fitness and accordingly formulate
decisions without considering the bias behavior or interest related with profit shares.
Research Methods
Primary Data Collection
Primary data collection can be defined as the process of collecting data through different methods
such as interviews, surveys etc. Both interviews as well as surveys are among the most common ways in
which data or information is gathered. Primary data collection allows the researcher to collect relevant
and first-hand information from the respondents. The information can be analysed easily and the process
of data collection is also not very time consuming (Anand, 2017). In order to collect data primary data for
this research, the researcher has used structured interview method. Before collecting the data from the
respondents for this study, the researcher has obtained consent from the participants in order to ensure
that appropriate and reliable information is collected. The respondents were also provided with the basic
information about the research topic so that they can provide responses in an effective manner
(Filatotchev, Poulsen. and Bell, 2019). This made the overall process of data collection easy. The
researcher also obtained a letter from the company granting the permission to interview the employees for
the research. Interview method has been opted by the researcher because it is less costly and will also help
the researcher in collecting the information. The questions that were framed by the researcher were based
on the research topic and carefully developed.
The interview comprised of nearly 5 questions and all of them were designed keeping in mind the
requirement of the research as well as the research topic. The reason behind asking the questions from the

participants was to gather relevant and appropriate information from them that can be analysed and
included in the research. The researcher has noted down the response of all the participants in order to
gain a better understanding of the research topic (Caskey and Laux, 2017). The language of the questions
was kept simple so that the participants do not face any difficulties in answering the same.
Sampling – Sampling is an important component of a research and can be defined as the process
of selecting a pre-determined number of observations from a large population. The process is vital
because it helps the researcher in saving a lot of time and obtaining relevant as well as appropriate data
for a large population. There are two types of sampling methods, probabilistic as well as non-
probabilistic. In order to complete this research, the researcher has used non-probabilistic sampling
(Crifo, Escrig-Olmedo and Mottis, 2019). Convenience sampling is a type of non-probabilistic sampling
method that has been used in this research. It can be defined as a type of sampling method in which
people belonging to a particular population are sampled because they are a convenient source of obtaining
data by the researchers. This type of sampling is used in the research because it is considered to be one of
the most useful sampling methods and is used to gather information regarding critical matters (Gangi and
et.al., 2019).
Data Analysis – Data analysis is another important component of a research and includes the
researcher analysing the data that has been collected and then obtain useful and valuable results and
derive conclusions. In order to analyse the data in this research, the researcher will organize the data and
then review the same carefully (Yermack, 2017). The reliability, validity as well as generalisability of the
data will also be checked. This will help in obtaining reliable data and gaining useful insights about the
same. Qualitative analysis is done in order to develop a better understanding of the different issues that
are faced by the company due to not being able to handle the data of the projects as well as the employees
working in the company. This will further help the researcher in developing effective strategies and
making informed decisions.
Secondary Data Collection and Analysis
The secondary data will help the researcher in developing an in-depth understanding of the
privacy and data protection issue of corporate governance that the respective company, Sports Direct
Fitness is currently facing. For instance, various websites, journals and articles have been referred to
(Haxhi and Aguilera, 2017). The different books available in the Bew Buckingham online library have
also been referred by the researcher. On the other hand, the different resources of the company including
annual reports as well as analyst report have also been reviewed. All of the relevant information was

gathered by the researcher to make sure only appropriate and relevant information is included in the
research. Only data and information after Jan 2020 until Dec 2020 was consulted.
Ethics
The researcher has followed various ethics while undertaking the research. For instance, all of the
information relating to the participants as well as the respective company, has been kept private and not
shared with anyone. After the completion of the research, the data was destroyed. Also, during the
process of primary data collection, the participants were given the option of withdrawing themselves at
any point of they felt so. The different ethical issues that can affect the research include not obtaining
consent from the respondents prior to collecting data. Apart from this, selection of inappropriate research
methods, inappropriate research design and data analysis methods is another ethical issue that can impact
the overall outcome of the research (Goranova and et.al., 2017). Therefore, in order to resolve these
issues, it is important for the researcher to obtain informed consent from the respondents so that they will
be able to provide appropriate response. Apart from this, the researcher should have adequate knowledge
regarding the most suitable research methods as well as research design for the research.
Critical review of research outcomes
Corporate governance is the combination of rules, processes or laws through which businesses
are run and operated, regulated and controlled. The term includes the intrinsic and extrinsic aspects which
influence the interest of a business enterprise’s stakeholders, considering shareholders, consumers,
suppliers, government regulators and administration (Ishihara and et. al., 2018). The boards of directors
are accountable for creating the framework for corporate governance that best aligns business organise
with aims and goals. Corporate governance in organisation is crucial because assists the enterprise to
regulate risk and reduce the opportunity for corruption. Also, good corporate governance supports in
making clear to every workers of the firm, their accountabilities and encourage them to keep these
accountabilities in mind when making decisions. Executing an excellent corporate governance system
will also assure that the firm protects its members, employees and administration. It is an effective tool
which can be used and considered by the management of business organisations in order to manage and
deal complexities of business (Haxhi and Aguilera, 2017). In Sports Direct Fitness, the administrate can
implement good corporate governance in order to deal with its issues of COVID 19 and Brexit as well as
competition problem in the market. Also, with the support it, the firm can manage other threat of business
in adequate manner. In addition to this, it has been find out that improved corporate strategies and plans
will yield enterprise within making up trust with the society and their investors due to which fiscal
viability can be produced for having long term investment options which will direct market to contribute.

It can be also outlined from the research that the board of directors must also take into account primary
stakeholders those posses the abilities of impacting corporate governance.
Additionally, in Sport Direct Fitness, directors must be elected by stakeholders of the form that will
represent shareholders as well as the board of directors are responsible for assuring that reliable corporate
governance polices have been developed with corporate plans, accountability, risk management and
transparency in ethical business activities are being considered by them (Wahl-Alexander and
Chomentowski, 2018). Along with this, it can be also outlined that corporate basically has loads of
conventionality that have to be considered, attracting diverse laws supported on their industry. Corporate
governance makes sure legal compliance, but it does come at a very sturdy price. Along with this, it also
maximises costs such as administrative cosy for enterprise with corporate governance are pretty
exorbitant, including all the needs to be met. The misuse of corporate governance has led to the
acceptance of a broader range of federal and state laws to discourage such abuses from repeating.
Compliance with laws can be burdensome and costly for enterprises (Hernandez-Perdomo, Guney and
Rocco, 2019). Apart from this, as per the researcher point of views, it has been resulted that corporate
governance involves integration of diverse processes, laws or regulations that will direct business to
operate, control as well as regulate their diverse actions. The corporate governance includes of inside as
well as outside components which instantly makes an influence in the stakeholders like dealers,
shareholders and the target audiences of Sport Direct Fitness (Gu and et. al., 2019). With the effective
support of corporate governance plans of action, the management of Sport Direct Fitness can play an
effective role in accountability, public acceptance and minimising risk.
It can also be critically analysed that by making use of secondary data, information can be
collected by the prior work of different authors, scholars and writers (Huu Nguyen, Thuy Doan and Ha
Nguyen, 2020). This information is already accessible in the market and used by others regarding their
work as well as easily collected by the person in order to complete their task and project. During the time
of secondary data collection, it has been outlined that corporate governance is involved to be a primary
section of a firm which provides a structure including laws, values and policies which lead corporate
activities as well as assist in supporting business operations in appropriate manner (HUYNH, 2020). Also,
it has been monitored that to conduct secondary research in appropriate form, the competent examination
method has been considered due to support the information after determination in efficient form. With the
use of this study, the information can be collected in deep and brief manner. But, the data which is
collected by this method is not pure and fresh in form. This has been determined that inappropriate
corporate governance system influence business activities and brand reputation in front of the stakeholder
and community that instantly influences market development in the term (Muntaner-Mas and et. al.,

2019). Along with this, the business enterprise face numerous issues like reduction in profitability, affect
potential revenue, minimised profitability ratio, unhappy shareholder and confidence is influenced
through organisational stakeholders etc.
Additionally, Sports Direct Fitness highlight on creativeness of the corporate governance
framework of the company by which the management can make transparency in the business operation of
the company. With this, it can be monitored that issues occurs in business cause of lack or effective
responsibilities, inappropriate framework of corporate governance and lack of transparency (Jouini, Ajina
and Derbali, 2018). In context of this, it is recommended that company have to find out all the
possibilities that might direct the shareholders and authorities of the firm, in order to deal and manage
issues which are arisen in the business of respective firm due to corporate governance. Along with this, by
using effective policies and strategies of corporate governance, the management of the venture can
appropriately analyse the key cause and reason behind the problems and issues of the firm.
It can be analysed that with the use of primary research, the business enterprises can get
appropriate understanding and solution regarding problems (Kaymak and Bektas, 2017). In Sport Direct
Fitness, the management face issues due to COVID 19, Brexit and high level of competition which create
direct impact over the business productivity and profitability. Due this, the market share, number of
consumers and market image of the company is affected (García-Fernández and et. al., 2018). These
events have formed a strong influence on the shareholder dissatisfaction as the company offer certain kind
of discounts to its target audiences without making any kind of previous discussion with its all
stakeholders. Corporate governance has critical role in order to carrying out their functions by which
business activities can be executed in more developed manner. In context of Sport Direct Fitness, the
conception of corporate governance is responsible for the administration of balance which exists among
the welfare of stakeholders.
Along with this, it has also be resulted that activities and operations which carried out in the
company in order to assure that stakeholders are linked with interest when certain decisions are made and
activities are carried out with the corporate governance because it makes direct impact on satisfaction
level of Sport Direct Fitness (Lombardi and et.al., 2019). For example, if one person is involved in it, then
the opinion will be limited but there are number of individuals have involvement within it then it will lead
to have broad perspective according to which all the aspects which is optimistic as well as negative will
be temporarily complicated. This states that brief understanding about the way of doing and the form
through which it can be done (Choudhury and Hoque, 2019).