Sepp Blatter resigns

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IoD reacts to Fifa scandal Sepp Blatter

The president of global football’s governing body, Sepp Blatter, has resigned amid a corruption scandal. It comes after a week of negative headlines for Fifa, following the arrest of seven top officials and Blatter’s re-election on Friday

The IoD’s director of corporate governance, Dr Roger Barker, told newspaper City AM: “As a minimum, sponsors have to say to them: unless you fundamentally change your governance structure so that it becomes more accountable, potentially we could in the future withdraw our sponsorship funding.”

While some sponsors such as Visa have threatened to withdraw its money and FA chairman Greg Dyke has backed a Uefa boycott of the 2018 World Cup, many big-name sponsors have so far remained mute.

IoD members would not adopt a Fifa-style governance structure for their companies, said Barker. “It is an astonishing structure,” he said. “A lot of these sponsors of Fifa pay a huge amount of attention to the governance of their own companies, in order to have a good reputation as a company, and yet they are putting money into an organisation that appears to be hugely lacking.

“In a way it kind of negates the governance structures they are putting in themselves.”

@The_IoD

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Richard Dunnett

Richard Dunnett

Richard Dunnett is an associate editor who writes about entrepreneurs, SMEs, FTSE 100 corporations, technology, manufacturing, media and sustainability.

1 comment

  1. Ian Richardson 11 June, 2015 at 22:38 Reply

    It strikes me that going in December is too late. It is unlikely that those involved will be able to make the necessary changes to change the FIFA culture.

    As described:
    “The idea that the structure of a system creates the behaviours within it is one of the most fundamental principles in management literature. What it implies is that individuals should not be blamed for behaving in a suboptimal way. It is only by changing the underlying structure of the system that we will get them to change their behaviours.
    What will it take to prevent – let’s say – bankers from succumbing to the conflicts of interest in their professions? Changing the culture of banking requires ‘thinking differently’. Replace the people without changing the values, culture and incentives and the same mistakes will occur over and over.
    In the middle of a change reaction
    Costas Markides and Anita McGahan
    LBS Review 26 May 2015

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