FIFA: Hope For Reform Rests With Corporate Sponsors

This is not the first time that FIFA "has been associated with governance failure and lack of accountability," according to Stephen Morrow of the STRAITS TIMES. The way the organization is set up means that "pressure from sponsors could be the only way that things will change." FIFA "has long been seen as a self-servient institution; reluctant to allow any external involvement in its activities." So, while some sponsors have severed their ties with FIFA, "most have stuck with it," with much to gain from FIFA's global market share. But given the organization's repeated failures, "one frustration has been the unwillingness of other commercial sponsors and partners to play a more active role in seeking to improve governance, transparency and accountability." FIFA's corporate sponsors "are a veritable who's who of powerful multinationals: Visa, McDonald's, adidas, Budweiser, Coca-Cola." Their response to scandals that have occurred over the years -- whether it is the conditions of workers involved in building World Cup infrastructure or bribery and corruption -- has tended toward public statements expressing "disappointment" and "desire for change." Sponsors are, of course, "at risk from their relationships" with FIFA. But, until there is "any prospect of this impact" on their own financial performance or status, sponsors have "seeminglybeen content" with economist Albert Hirschman's notion of governance by "voice" and not "exit" (STRAITS TIMES, 6/1). THE DRUM's Michael Hayman wrote the global giants footing the bill for FIFA’s largesse "are no prisoners." They have choices, "and it is time they took a stand." It is time for these brands "to separate themselves from the toxic activity" of FIFA. A failure to do so "will inevitably cause irreparable damage in the eyes of the consumer." Three of the sponsors -- McDonald’s, Coca-Cola and Visa -- have just been ranked as among the 10 most valuable brands in the world in the BrandZ Global Report 2015, "which was published last week." They need to not only take care of that reputation, "but take action to show that business can be a force for good." McDonald’s CEO Steve Easterbrook said, "To be more progressive around our social purpose in order to deepen our relationships with communities on the issues that matter to them." As McDonald's is a flagship FIFA sponsor, his words "will only matter if belief is backed by determined action." These brands are reputed to have invested £130M ($197M) over four years, and they have a "vested interest" in making the World Cup a success. Their sponsorship "has spearheaded the growth" of FIFA into a multi-billion dollar empire. If they step away, "they risk being sued and they risk opening the door for competitors to take their place." But their investment "might seem like small change if the stench engulfing" FIFA contaminates them (THE DRUM, 6/1).