McNamee Hosea News & Press

Back

What Entrepreneurs Can Learn From the FIFA Scandal


This article provides four lessons key lessons that entrepreneurs can learn from the FIFA scandal. The first, the power of business culture.

Soccer is gaining popularity throughout the country. Some enjoy watching the sport; others enjoy watching how the Federation International Football Association, or FIFA, is navigating current charges of corruption. Interestingly, the scandal provides lessons for entrepreneurs throughout the country, including here in Maryland.

What can an entrepreneur in Maryland learn from the FIFA scandal?

The biggest lesson from this scandal is the power of the business culture. This can be addressed during the initial business formation phase of the entrepreneurial process. Exactly where this is addressed can depend on the legal structure chosen for the business. Regardless of the chosen legal structure all businesses are wise to have a business plan. According to a recent article in Forbes, a clear message from senior management can set the tone within the business. Putting this tone in writing in the business plan can further clarify expectations for everyone involved in the business.

Additional steps to help better ensure your business is safeguarded against corruption include:

  • Train. It can be beneficial to offer training sessions that provide examples of corruption that could occur within your particular business setting and discuss how these issues should be addressed. For companies that operate internationally, this could include instances when executives in foreign businesses or civil servants request illegitimate payments. 
  • Discuss. This training session should also reiterate practices that can help reduce the risk of corruption. An example includes providing only company phone numbers for contact as opposed to a personal, private, cellphone number. 
  • Empower. It is also wise to allow employees to approach senior members of the company when they are put into situations that the worker is concerned may border on the corrupt. Empowering workers to have these conversations with their superiors can help proactively address any potentially dangerous situations before it is too late.

Potential for corruption is just one business concern entrepreneurs must face. From incorporation to litigation, entrepreneurs will deal with a wide array of legal issues. Establishing a culture that does not tolerate corruption is just one step towards a healthy and successful business.

Setting up for success, the role of an attorney

Those who are considering starting a business are wise to seek the legal counsel of an experienced corporate and business law attorney. This legal professional can help guide you through the incorporation process, discussing the various legal structures that are available and the risks and benefits of each for your unique business needs. This professional can provide services during business disputes, succession planning and potential debt relief.