Strategic Management: Concepts and Cases: Competitiveness and Globalization 13th Edition by Michael Hitt , R. Duane Ireland , Robert Hoskisson

Exercise 5

Mini Case
The Global Soccer Industry and the Effect of the FIFA Scandal
Note: each chapter Mini-Case is prepared as an auto-graded Guided Case Analysis activity in MindTap™. More information below.
The Fédération Internationale de Football Association (FIFA) is an international sports organization founded in Europe in the early 1900s. The organization, known for its World
Cup competition, has grown into an international force, especially in the last several decades. However, because of the weak institutional infrastructure in many countries where the game of soccer is played around the world, there is ripe opportunity for corruption. Apparently, many involved in the FIFA infrastructure globally, regionally, and within specific countries have taken advantage of this opportunity. With nearly 1 billion worldwide viewers, the World Cup drew large corporate sponsorship under longtime FIFA president Sepp Blatter. But in 2015, the U.S. Department of Justice and the FBI announced a long list of indictments, and simultaneous arrests of FIFA officials were made at the Zurich FIFA meetings in Switzerland. Blatter eventually stepped down from his presidency. According to these allegations, intermediaries were paid exorbitant amounts for contracts they helped to establish. Then these intermediaries funneled the bribes to the leaders of the regional and country FIFA-related associations. Now, many of the former large corporate sponsors, such as Adidas, Nike, and McDonald's, are cautious about supporting an organization that has been as tainted politically as has FIFA.
-How can companies handle corrupt practices in foreign countries? Can they find ways to compete there without engaging in these practices? Please explain.