The ongoing Fédération Internationale de Football Association (FIFA) corruption investigation took a comical turn on July 20, 2015 when a British comedian began throwing fake money at long time FIFA President Sepp Blatter, requesting a World Cup be held in North Korea. While many observers have long suspected corruption existing in FIFA, a recent investigation has brought very strong allegations to light and forced the organization to take action.
Although corruption is present in a number of organizations worldwide, FIFA’s position as the head of global football has brought the organization into the spot light in the worst way possible. Corruption not only results in misallocated funds and resources, but also major damage to consumer confidence and trust in an organization. FIFA is lucky in that regard. As the governing authority on world football, consumers are forced to stick with the organization as it (finally?) takes action and rehabilitates itself. In a business setting with multiple options for similar products, an organization caught in a major corruption scandal would be reeling financially.
Issues of business corruption go beyond brand perception into acts born of criminal intent. Corruption is illegal in a large number of countries even if enforcement is nonexistent. The U.S. government has strict anti-corruption laws –with global reach, which explains why the U.S. is the driving force behind the FIFA investigation. U.S. companies are very familiar with these in relation to financial management. APQC has several items on corruption with a focus on financial management aspects.
While FIFA will live to see another day, a corrupt company has more to worry about than negative publicity. Heavy fines and years of criminal investigations can hurt the overall fiscal health and competitiveness of an organization in ways that far outweigh the gains of corrupt practices. Worst yet, some instances of business corruption have resulted in large-scale damage to the natural environment and whole companies collapsing, which in turn disrupts and harms the lives of numerous employees. Tackling corporate corruption is more than good business, it is good for everybody.
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