Crisis? What Crisis?

FIFA President Sepp Blatter showed a stunning disregard for reality in his response to the global headlines alleging fraud yesterday. However, the organisation relies on support from its sponsors, and if they start to mutter about their willingness to pump dollars into football tournaments run by an organisation which shows such a controversial approach to CSR, then he may have to acknowledge that the problem exists.

So this morning’s report that Coca Cola and Adidas have expressed concern at the damage allegations of corruption may cause, should finally start the alarm bells ringing. There is an implied threat in this quote from the BBC report: An Adidas spokesman said: “Adidas enjoys a long-term, close and successful partnership with Fifa that we are looking forward to continuing. Adidas will be an official sponsor of Fifa World Cup 2014 in Brazil. Having said that, the negative tenor of the public debate around Fifa at the moment is neither good for football nor for Fifa and its partners.”

Organisations that sponsor sport or the arts cannot afford to have their own reputations compromised by bad publicity at the event or body they are supporting. At the end of the 1990’s there was a similar scandal over bids to host the Olympics, particularly the award of the 2002 Winter Olympics to Salt Lake City, and it seemed then that the IOC was only prepared to investigate and act when they were put under pressure by their sponsors. And there are plenty of examples of businesses who have used stars for advertising only to withdraw in a hurry when negative stories hit the headlines - think Michael Jackson, Kate Moss, Roy Keane (2002 World Cup), to name just three. So concern about CSR needs to look at all the links that an organisation has, not just its own behaviour.