In: Accounting
What are some of the ethical problems related to the FIFA corruption case in 2015?
There's no right or wrong answer, but just make sure to explain briefly in the examples.
Answer :
In 2015, United States of America federal prosecutors disclosed cases of corruption by officials and associates connected with the Federation Internationale de Football Association (FIFA), the governing body of association football, futsal and beach soccer.
Ethical issues as a result of FIFA corruption case 2015 are :
1. Lack of transparency :It began in May 2015. Fourteen FIFA officials were arrested and indicted in connection with an investigation by the US Federal Bureau of Investigation (FBI) and US Justice Department into wire fraud, racketeering and money laundering, spanning a period of 24 years. That December, 16 more officials, including two FIFA vice-presidents, were arrested on similar corruption charges. Since then, the events snowballed into a full-blown scandal, with longtime FIFA President Sepp Blatter and other top officials banned from FIFA activities. Hence, there is lack of transparency
2. Very deep cultural issues : Higher official were engaged in fraud and bribery activities because of this the culture of FIFA was affected in negative manner people working in the association were demotivated and felt like there hardwork is going in waste.
3. Money laundering : Money laundering is the illegal process of concealing the origins of money obtained illegally by passing it through a complex sequence of banking transfers or commercial transactions. The overall scheme of this process returns the "clean" money to the launderer in an obscure and indirect way. In FIFA 2015 it was found that huge money has come from illegal activities like smuggling of drugs and mafia activities which is an serious offence.
4. Destroys integrity of sports : Football is the most popular sport around the world. If such unethical and illegal activities goes on for the years and years it destroys the integrity of the sport.
5. Tax evasion : Fraud in FIFA 2015 lead to evasion of tax .Which results in less revenue for the government. This ultimately impacts the economy of the country.