The Culture And Practice Of Good Governance

1338 Words6 Pages
The culture and practice of good governance set out beliefs and rules that soccer corporate sponsors need to vigilant about. Kavitha (2015) highlights governance malpractices that are happening within the global soccer governing body, FIFA. These malpractices include money that has been alleged to come through illegal channels, such as money laundering, racketeering, and wire fraud. FIFA officials, including nine of its high-ranking officials and five sports marketing executives, were implicated in the said scandal (Jennings, 2011). These scandals involved the individuals’ involvement in a series of bribery cases as well as other backdoor deals that were aimed at securing tournaments and FIFA events’ marketing rights. The concerns of the…show more content…
Currently FIFA is a powerful player in the global economy, and its corporate governance needs to touch on the areas of financial compliance, anti-corruption compliance, FIFA’s organizational structure, the elections of FIFA officials, bidding decisions, events hosting decisions, marketing issues as well as the areas of relationships between FIFA and its members concerning the conflicts of interests and the development programs (Pieth, 2011). Modern financial compliance systems require the inclusion of all financial transactions of corporations in the corporations’ audited bookkeeping as well as their financial reporting systems, a condition that is fulfilled in FIFA but with rather a narrow consolidation that excludes several organizations with activities that the general public can attribute to FIFA (Pieth, 2011). This presents a risk for the investments of AII in companies sponsoring FIFA as FIFA’s large activity base combined with its narrow consolidation makes its financial controls difficult. It is important that FIFA work out on a catalogue of all payments that can be considered critical and related to corruption, and make a decision whether there is need for direct controls or the direct controls in place are sufficient to prevent the corruption risk. Also, FIFA’s specific anti-corruption controls existing within the system needs to be intensified to ensure that their scope is expanded. The current coverage of FIFA’s internal controls, which include
Open Document