The FIFA crisis has been dominating headlines for days. It’s not just a story for the football obsessed UK but across the whole world. With more investigations taking place by authorities in other jurisdictions as well, FIFA is now having to consider action not just from the US. UK banks are now also working out what to do as it appears that some of the alleged transactions went through their books.
So the implications are drawn more widely and the number of companies involved is growing as well. Further comments that Sepp Blatter is the victim of a conspiracy too should keep the story running for a little longer.
Here are seven things we have learned so far.
- Sponsors need to take action. Whilst FIFA’s sponsors have expressed concern, none have actually taken strong action. The sponsors may hope to ride out the wave of criticism but they are ignoring the possibility of actions, for instance by shareholders against them.
- Is there any value to CSR? Corporate social responsibility programmes form the heart of business strategies and are meant to guide how an organisations works. For FIFA, “fair play is a fundamental part of the game” and their sponsors too have long and detailed CSR policies in place. It can only be assumed at this stage that the activities alleged to have taken place are incompatible with those policies and that the policies have been read.
- The man in charge might not go. In crisis comms terms, the obvious answer would have been for Blatter to delay the elections and/or choose not to stand. He did neither. This shows that when planning on how to deal with a crisis it should never be assumed that a leader or leadership team will do the ‘right thing’ without question.
- Politicians are powerless (and so is the Royal Family). From the Prime Minister down, leading politicians have all expressed views on what they think should happen. None have had any direct effect on FIFA’s behaviour. Such comments add to the damage done on a reputation but for such international organisations they are almost above domestic politics. Even involving Prince William, President of the FA, will have no direct effect.
- This will run and run. The more comments, investigations and wider the pool of organisations affected then the longer the media will continue to maintain its interest.
- Risk assessment is essential. Sony and Emirates both took action in advance and ended their relationships with FIFA. Business planning, risk analysis and action has strengthened their reputation and standing.
- Intervention can come from any market you operate in. This isn’t just about where you are based but where you operate. Crisis communications needs to be just as international as any PR or engagement strategy.
There will be more lessons to learn from as the crisis continues to develop. In the meantime, along with Thomas Cook, FIFA is showing everyone how not to conduct themselves under the glare of politicians and the media.
FIFA is going to have to devise a hugely impressive strategy over several years in order to regain any authority at all.