INDS activist design CSR deficiencies FIFA fĂŠdĂŠration internationale de football association
V01 02.02.2015
FOR THE GAME FOR THE WORLD
CONTENTS. 1. 2. 3. 4. 5. 6. 7.
INTRO METHODS FRAMES DISCOVERY PROPOSAL POTENTIAL APPENDIX
Grundlingh, Jessye Guida, Matthew Kaczmarczyk, Kama Pfaff, Damon Short, Tanner
1-6 7-10 11-18 19-30 31.36 37-42 43-46
INTRO. FIFA & SOCIAL IMPACT
FIFA wields great power simply through the sheer size of the market they have cornered.
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FOREWORD 1. FIFA: 2010 FIFA World Cup South Africa 2. FIFA: About FIFA FIFA World Cup 3. Day Blakely Donaldson: FIFA, NonProfit Organization Will Make $2B 4. Lio Perron : Ordinary Brazilians don’t want to play Ball with FIFA 5. Aleksandra Jarecka: German Press About Fifa - felted, corrupted creature
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1.1 The Project Question Soccer is the most watched game in the world, and every four years the FIFA Wold Cup demands the attention of over 3.2 billion viewers worldwide.1 Today, the name FIFA is almost synonymous with the competition itself — and the sport in general. As the biggest onesport event in the world,2 FIFA wields great power simply through the sheer size of the market they have cornered, which translates into rapidly growing revenues for the organization.3 In recent years (2002 and 2010) FIFA held their first World Cup events in Asia and Africa respectively and will be hosted in the Middle-East by Qatar in 2022, showing a commitment to globalizing their reach and moving away from their historical focus on Europe and South America. However, the organization has drawn sharp criticism from local populations of their host nations as well as from journalists and academics abroad based on rumors of corruption and socially irresponsible conduct.4 & 5
As global social awareness increases and the World Cup grows and adapts to the changing circumstances and social structures of new and varied host nations, it is increasingly necessary for FIFA to consider their social responsibilities as an association. By running an event that has the potential to affect a country in such far reaching ways, this process must be nuanced and clear in scope in order to ensure its effectiveness for FIFA, their customers, their host nations and those host nation’s local populations. 1.2 What is CSR The problem with the term “Corporate Social Responsibility” (CSR), is that it functions on a number of underlying assumptions that include unquantifiable variables and ‘fuzzy’ terminology. Take, for instance, the word ‘responsibility’, which begs questions such as “to whom in society”, “responsible for what exactly”, “responsible until when”, etc.
This process must be nuanced and clear in scope in order to ensure its effectiveness. 4
FIFA can become socially responsible simply by making a clear effort to consider their own impacts. It is evident that the scale of the World Cup creates far reaching impacts that are both hard to trace in terms of causality and agency — and hard to justify in terms of quantity or quality. Thus, this report will take the position that FIFA is not responsible for the host society’s population, but is however responsible for having a clear and actionable program for mapping and improving its social impacts over time. CSR herein, will be synonymous with consideration, foresight, consensus building, improvement, measurement and iteration. Rather than offloading responsibility onto any one stakeholder in the life-cycle of the World Cup, FIFA can become socially responsible simply by making a clear, structured and controlled effort to consider their own impacts and mitigate their negative footprint over time. 1.3 Report Overview In this report, we will audit FIFA’s Corporate Social Responsibility and propose frameworks and approaches which can be used to improve the social impacts of the World Cup’s life-cycle. This will
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consist of: a summary of our processes and methods; a description of our frameworks and assumptions; and an analysis of the World Cup life-cycle leading to areas of focus for FIFA’s future CSR initiatives. The report will culminate in a Theory of Change framework that proposes a methodology for a nuanced CSR process and a number of examples of potential outcomes from this process. This report will leave a clear road-map for ways in which FIFA can begin to rebut criticism and move the World Cup execution in line with the values that are prevalent in contemporary social responsibility discourse.
METHODS. PREMISE & APPROACH
The social impacts needed to be understood as a deadlock in the balance of responsibility.
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PROCESS 1. FIFA: 2010 FIFA World Cup South Africa 2. FIFA: About FIFA FIFA World Cup 3. Day Blakely Donaldson: FIFA, NonProfit Organization Will Make $2B 4. Lio Perron : Ordinary Brazilians don’t want to play Ball with FIFA 5. Aleksandra Jarecka: German Press About Fifa - felted, corrupted creature
2.1 Research The team collected research from a variety of news and some scholarly sources. While limited to only English language sources, the group stove for diversity of opinion by analyzing media from sources in North America, Europe, Africa and the Middle East. The focus of the research surrounds the two most recent World Cups in South Africa and Brazil — as well as the upcoming World Cup in Qatar. This information was brought together into case studies which were broken down in terms of societal impacts for further analysis. 2.2 Sense Making The impacts from the Research section were then clustered around the 12 sectors of society which they impact. These sectors ranged from Communication, to Healthcare, to Transportation, to International Relations. The impacts were divided based on whether they had primarily positive or primarily negative effects on society. This part of the process contains a degree of inherent subjectivity, but to mitigate the effects of this, the team took care to ensure that both sides of the story were captured in our research. As a result, if the impact in question was positive for one group of stakeholders and negative for another, then both impacts were mapped in order to tell the story as completely as possible.
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2.3 Focus At this point, it became clear to the team that the social impacts of the World Cup needed to be understood in terms of a deadlock in the balance of responsibility between FIFA, their sponsors, the host nations, and their populations. For example, FIFA felt that responsibility for the deaths of migrant workers in Qatar fell to the host nation, and international coverage of the same phenomenon suggested it was, in fact, FIFA’s responsibility as organizer. All of these stakeholders needed to be considered as agents and factored into the process of a socially responsible World Cup event. Second, the team identified that the impacts of the World Cup exist in pairings. Where one group of stakeholders benefits from an act, another group is adversely affected in some way. The problem is that the decision making structure behind these acts are decided in a unilateral way by FIFA without consideration of the specific social structure of each host nation. Thirdly, it was clear that because the FIFA World Cup is a rotating international event, that a socially responsible approach to business could not be unilaterally developed or be based on a one-size-fits-all model. Whatever CSR program exists for FIFA, it would have to be a flexible and adaptable system, based on fixed values core to the FIFA brand.
2.4 Perspective The rest of the project process was oriented around the idea of viewing the World Cup as a product with a life-cycle starting with the social structure before the bid and leading forward into the postWorld Cup legacy. This allowed us to structure, map and prioritize the social impacts in a way that would allow them to be measured, predicted and mitigated. It is the view of this team that societal consideration, risk-assessment and mitigation constitute a positive leap in FIFA’s CSR policy and would position FIFA to present evidence of due diligence to their detractors and critics. 2.4 Proposal Our findings indicate that FIFA stands to benefit from a flexible toolkit which could be applied to a diverse set of cases. This toolkit will include the following 5 tools:
1. A framework of branded FIFA Social Values. 2. A process for collecting, evaluating and prioritizing Host-Specific Risks. 3. A process for planning and implementing Risk Mitigation. 4. A process for generating and maximizing Potential Positive Impacts. 5. A process for conducting and learning from Actual Impact Assessment.
This toolkit would prescribe specific methods and deliverables to be conducted in the case of each World Cup life-cycle and outline the types of stakeholders that should be involved at each stage of the process to ensure that due diligence is met with respect to FIFA’s social responsibility. 2.5 Opportunities Finally, the group considered the possibilities available through this toolkit as applied to previous cases of the FIFA World Cup in order to consider how this approach could have mitigated criticism of the FIFA organization and led to more socially responsible outcomes.
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FRAMES. PROJECT MENTAL MODELS
The focus was altered from analysis of environmental impacts to social ones.
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LIFE CYCLE ANALYSIS 6. International Standards Organization: ISO 14040.2 Life Cycle Assessment Principles & Guidelines
PRE-BID
This step involves countries embarking on a planning process for meeting the criteria of FIFA and their sponsors. Prospective countries must analyze their infrastructure and make plans for how the can reach the appropriate capacity and quality. Winning bids typically cost millions of dollars to produce.
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This framework is used to assess the impacts of a product or service over its life cycle from cradle to cradle.6 For our purposes the stages of the life cycle were adapted to match the World Cup event specifically and the focus was altered from analysis of environmental impacts to social ones.
AWARDING
FIFA’s executive board of directors meets to review the bids, discuss them, and hold an anonymous vote for the future host country. This process has been plagued with accusations of corruption.
IMPLEMENTATION
Once the host country is chosen, preparation for the event begins. Infrastructure, security, government legislation, advertising law, amongst other things, which were clearly outlined in the bid process, start to be executed. This process has typically drawn criticism for immigration and worker’s rights in the building of stadiums and questions over the priorities and sustainability of infrastructure development.
The stages of the life cycle assessment were adapted to match the World Cup.
LOGISTICS
As the event approaches, FIFA promotes events and prepares the involved parties to execute as the games begin. Vending, security, broadcast rights and intellectual property enforcement all fall into this category. FIFA has been questioned on the way in which their logistical practices impact the host country in the long term from a sustainability standpoint.
EVENT ITSELF
Once the World Cup begins, an exuberant atmosphere typically encapsulates the host city- with criticisms towards FIFA and the host countries often fading into the background as news agencies prioritize team politics and match results over continued political questions. During this time, FIFA’s key function is to extract as much value as possible for themselves and their partners. FIFA has been criticized for demanding that they act as a Head of State, and make legal decisions regarding policies. crime, etc.
LEGACY
Long after the World Cup is over, the effects of infrastructure and development decisions continue to impact the host nation and their populations. FIFA has received criticism for leaving the sole responsibility of the event’s legacy with the host nation, such as infrastructure maintenance and supplement transport systems.
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SOCCER IS AN ORGANIZED RELIGION
AND FIFA IS ITS CHURCH
THEORY OF CHANGE 7. Carol Weiss et al: New Approaches to Evaluating Community Initiatives - Early formulation of the Theory of Change
GOALS
Long term goals are captured in terms of a desired outcome. It is important to ensure that these outcomes are desirable and to consider the possible impacts on other sectors of society.
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The Theory of Change addresses the way in which a socially focused initiative plans to make an impact in a particular area. It is essentially a plan for understanding causal relationships and mitigating their impact with some form of risk-management structure or targeted intervention. This framework was adapted into a plan for FIFA to take control of their CSR in the form of social
BACK-MAP
Backwards mapping traces the causal pathways and necessary preconditions for the final vision of the Theory of Change to come about.
due diligence, documentation and targeted responsible interventions. For our purposes the order of the steps was later altered for FIFA because their interest is not first and foremost one of social intervention. Rather, they are in the interest of risk management and targeted strategic CSR initiatives.
CONTEXT
Basic assumptions about the context of the initiative must be identified and made clear. This context specific awareness will form the foundation for implementing social intervention.
CSR will take the form of social due diligence, documentation and targeted interventions.
INTERVENTIONS
This step involves the design of interventions to bring about the causal chain described in the previous sections. This may require the development of a number of scenarios and contingency plans.
INDICATORS
Finally, indicators are developed for measuring the success of the project outcomes, assess performance and iterate closer to the project goal.
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DISCOVERY. FINDINGS & INSIGHTS
“Organizers have a responsibility to limit... negative effects, while at the same time maximizing the huge positive impacts.�
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PRE-BID
International Cost of Bid Process In preparation for a proposal to host the World Cup, countries spend millions of dollars on bids which may not be awarded. For instance, England’s losing proposal cost their FA £21 million. The sports minister, Hugh Robertson, noted of the loss: “When I look back on it now, I wish we had the gumption or the knowledge to realize at a very early stage that FIFA wanted something fundamentally different than what we were putting on the table... I wish we had had foresight to appreciate that earlier in order to stop the investment of £15m”. Impacts Economy, Culture
8. Owen Gibson: Fifa tells Australia to forget about £25m World Cup Bid Compensation. The Guardian.
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AWARDING
Corrupt Bidding Process FIFA’s bidding process has been scrutinized due to claims of corruption and questionable decisions. 2010 marked the first time that two countries were selected on the same day for the next two FIFA World Cup tournaments. An anonymous vote of FIFA’s executive board pronounced Russia as the host in 2018, and Qatar in 2022. The decisions have created a global controversy and FIFA’s bidding process is being questioned. Michael Garcia, a former U.S. attorney, has investigated the decisions and attempted to appeal FIFA’s bidding process. The allegations were dismissed by FIFA’s governing body with the rationale that Garcia’s appeal, “is not admissible” because the analyzed document “isn’t legally binding or appeal-able”.
International Scrutiny The large scale of the FIFA event places the host country under a microscope of analysis. This was evident in the past two World Cup events held in South Africa and Brazil. In the months prior to the tournament, the countries were constantly criticized for being unsuitable hosts for the tournament because of various social and political issues. The trend of speculation continues with Russia and Qatar, who will host the next two World Cup tournaments. Qatar has recently been questioned as a suitable choice to host the World Cup due to its extreme heat in the summer months.
Increase in Security Risks Once the bid has been awarded, the host country becomes the centre of major international attention. This increases the host’s susceptibility to high-risk security situations in the lead-up to the games. The Brazil World Cup saw riots to protest government mis-spending and poor living conditions. In the past, similar events such as the Olympics have also been impacted by threats ranging from political protest to hostage situations. Impacts Security
Impacts International, Economy, Communication
Impacts Legal justice, Economy
9. Tariq Panja: FIFA rejects Investigator’s Appeal of World Cup Bids Report
10. Tariq Panja: Qatar Fit to Host World Cup Brazil Sports Minister Rebelo Says. Bloomberg.
11. Kenneth Rapoza: Brazil’s Anti-FIFA Protests: Not Little, But Definitely Late
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IMPLEMENTATION
Over Budget Host Spending There are many instances in the preparations for the World Cup where the host country goes over budget, causing local unrest as governments may fail to justify the increasing expenses to their citizens. In Russia, seven of the twelve stadiums needed for the 2018 World Cup are being built from the ground up, and the initial budget of $415 million has risen to $1.2 billion. South Africa’s original bid, as suggested in 2003, claimed they required a budget of R2.3 billion, which is a far cry from the estimated actual cost of R39.3 billion. Impacts Economy
Locals Uprooted There is evidence that in preparation for the World Cup both in Brazil and South Africa, residents were forcibly removed from their homes in order to facilitate building the stadiums. According to an investigator appointed by the UN, “more than 20 000 residents were being moved from a makeshift settlement near Cape Town to impoverished areas at the edge of the city before the World Cup. Rolnik said South Africa had “left behind” its commitments to ensure the right to housing in the context of the event”. Similarly, in Rio De Janeiro, residents were evicted from run-down buildings located near stadiums in preparation for the event, with local organizers telling the media that the evictions are “being demanded by Fifa and the World Cup organizing committee,” a claim which FIFA has staunchly denied. Impacts Economy, Culture, Housing
12. Benjamin Bidder: Stadium Sticker Shock: Costs Explode for Russia’s 2018 World Cup 13. Eddie Cottel: A Preliminary Evaluation of the Impact of the 2010 FIFA World Cup South Africa.
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14. IOL: Fifa’s Housing Stance Lamented. Abahlali.org. 15. Jonathan Watts: Brazilian Riot Police Evict Indigenous People Near Rio’s Maracanã Stadium”. The Guardian.
Labour Rights Issues FIFA outwardly denies responsibility for the events associated with the host nation’s preparations. When confronted with the information that migrant workers were dying in Qatar, Sepp Blatter, the President of Fifa, made clear that “Welfare of migrant workers lies with their employers and not football’s governing body.” Thus, it becomes clear that FIFA denounces having responsibility for issues such as the rights of workers building infrastructure required for the events- rather expecting host nations to take the brunt of such effects. Impacts Economy, Legal Justice
16. Qatar Labour Issue Not FIFA’s Responsibility. Al Jazeera.
LOGISTICS
Strict Licensing Restrictions Although the World Cup promotes tourism as an obvious benefit to host cities, many local businesses are not able to directly interact with the event in their city via promotions such as ticket raffles, official decorations or event specials. According to FIFA, they are unable to use terms such as “World Cup”, “FIFA” or the names of the host cities in their brand literature, as FIFA strictly enforces licensing restrictions. It is also illegal to hold any type of ticket promotion, as FIFA guidelines state this creates an “Unauthorized Association” without paying the official sponsorship fee’s. Impacts Economy, Tourism
17. FIFA: FIFA Public Guidelines for Use of FIFA’s Official Marks.
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Increased Tourism The Fifa World Cup attracts millions of tourists from around the world. Tourism in the host country excels during the tournament and lasts long after the tournament ends. Prior to the 2014 World Cup it was estimated that, “3.7 million people were expected to travel throughout Brazil during the 2014 FIFA World Cup, and it is believed that the average foreign tourist will attend four World Cup matches and spend approximately $2,488 during his or her stay in Brazil.” Impacts Tourism, Economy
Amendments to the Law It is arguable that FIFA continues to exert power over the host nation well into the planning of the event, as can be seen in their successful bids to get laws changed in host countries in order to facilitate their continued revenue streams. In 2003, Brazil had placed a ban on alcohol within stadiums to lower violence and help protect fans attending games. FIFA then pressured the brazilian government into passing the “Budweiser Bill”, which would allow the sale of alcohol (specifically Budweiser) in stadiums during matches, with FIFA secretary general Jerome Valcke calling a relaxation of the ban “something we won’t negotiate”. Impacts Justice, Society
18. Darren Heitner: 2014 FIFA World Cup Expected To Add $3.03 Billion To Brazil’s Economy.
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19. Chapel, Bill. “Brazil Moves To Ease Soccer Beer Ban, As World Cup Spat With FIFA Grows.” NPR. NPR, 7 Mar. 2012. Web. 01 Feb. 2015.
EVENT ITSELF
Entertainment “As the global governing body of the sport of soccer, FIFA hosts the largest single sport event in the world: The World Cup. The tournament is held every four years, each time by a different host country. Soccer in itself is the most widely played sport in the world. “FIFA. Our promise: For the Game. For the World. Our mission: ‘Develop the game, touch the world, build a better future.”
Gentrification Beautification Campaigns in South Africa ahead of the 2010 cup were implemented in order to keep the area around the stadiums, usually reserved for local informal traders, clean, ostensibly for the benefit of the tourists in terms of safety. Impacts Tourism.
Impacts Communication
Loss of Income for Local Traders During the world cup, areas around stadiums are reserved for the sale of officially sponsored products only, meaning local traders are uprooted for the duration of the event, depriving some citizens of income. Both in Cape Town and Brazil, for the duration of the even, a 2km “area of exclusivity” was enacted around the stadiums, depriving at least 300 informal traders of work in Cape Town for the duration of the event. Impacts Economy, Culture
22. ibid.
20. FIFA: FIFA Mission & Statutes.
21. Elizabeth Gorman: Protests Gather against FIFA Exclusion Zones. Aljazeera.
23. Eddie Cottel: A Preliminary Evaluation of the Impact of the 2010 FIFA World Cup South Africa.
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FIFA Courts During the Cape Town World Cup, in order to address international concerns over safety owing to their famous crime rate, South Africa installed 56 courts across each of the nine host cities. The host cities’ resources were used to prosecute cases from theft to implementing FIFA’s trademark laws, yet some prosecutors called their sessions “uneventful”, stating that “This type of justice is unheard of in South Africa. Discussing it with people who live here, the prevailing sentiment is to wonder why all the courts can’t work so efficiently”. These “FIFA courts” were allocated $6 million of the total budget during the event, and this increased efficiency of the existing justice system caused one local to consider “if World Cup justice is harsh, maybe something will continue for all of us after the important foreigners have gone”.
Health Awareness Campaigns During the WC in Brazil, local health organizationals took advantage of the large crowds of local citizens at the “Fan Fest” arenas as opportunities to further the AIDS/HIV Awareness campaigns, performing “300 rapid HIV tests” in one location, with “many…getting tested for the first time ever”. Impacts Health
Impacts Justice
24. Peska, Mike. “South Africa’s World Cup Court: Sudden Justice.” NPR. NPR, 22 June 2010. 25. Hughes, Rob. “Swift and Severe Justice at World Cup Courts.” The New York Times. The New York Times, 20 June 2010.
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26. Reuters: Brazil Takes Advantage of the World Cup Crowds to Test for HIV
LEGACY
Stadium Maintenance According to Rehad Desai, a South African filmmaker, the stadiums built for the world cup came at the expense of local housing, even as the stadiums stand empty. Since the 2010 World Cup, Cape Town has spent R42 million per year maintaining the goliath structures, while failing to fill them year-round. Impacts Economy, Housing, Culture
Infrastructure Sustainability Once the event is over, the question of what to do with the cup-specific infrastructure such as the stadiums falls to the host nation, with varying effects. For example, Claudio Goncalves Couto, professor at Sao Paulo’s Getulio Vargas Foundation stated that although most of the stadiums built in Brazil will be a success, he thinks that the stadium in Manaus was a poor decision. Couto’s greatest concern was that Manaus is too small of a city to support the use of this stadium in the future: a stadium which was only used four times for the official event. Similarly, Cape Town has been struggling to find uses for its downtown stadium, which has been standing empty for most of the year. The only lease currently being held is by the local soccer team Ajax, whose games have an average attendance of only 5000, making the stadium expensive to hire.
Projected Revenues Analyzed It is only in the aftermath of the event that the full impact of hosting can be quantified in an economic sense. Just as projected costs before the event are rarely accurate, sometimes profit is less than anticipated. In the case of the 2010 World Cup, South Africa received only 309 000 of the predicted 450 000 visitors, making their returns on the event less than ten percent. This sits in contrast to Germany’s summary of the economy after the World Cup, which, according to Interior Minister Wolfgang Schäuble, “had a very positive effect on the country’s economy and helped improve its image internationally”, as attendance was higher than expected. Impacts Economy, Infrastructure
Impacts Economy, Culture.
27. Usayd Younis: It’s the most unequal country in the world’: Rehad Desai on the future of South Africa. 28. Quinton Fortune: South Africa spent £2.4bn to host the 2010 World Cup. What happened next?
29. David Poort: Can the World Cup Leave a Positive Legacy? Aljazeera. 30. Raj Patel: Upside Down World Cup: How South Africa Has Cracked Down... Democracy Now! 31. Quinton Fortune: South Africa spent £2.4bn to host the 2010 World Cup. What happened next?
32. Germany’s World Cup Hails Economic Social Success. Deutsche Welle. 33. Rupert Neate: South Africa Recoups Just a Tenth of the 3 Billion Cost of Staging the World Cup. Telegraph.
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Publicity The host country experiences a great deal of publicity during the World Cup. The potential for growth through global publicity is a major reason for many countries bidding to host the tournament, although they may not yet be economically capable or have the infrastructure required to do so. FIFA’s secretary general, Jerome Valcke, addresses this publicity concern, explaining that “organizers have a responsibility to limit the associated negative effects, while at the same time maximizing the huge positive impact it can have”. Sentiments such as this suggest the power of the media on the host nation: in order to attract tourists— one of the main sources of revenue for the host nation— any information which would discourage visitors results in a possible decrease in revenue, both during the event itself and, perhaps more importantly, after it, as the legacy of the cup lives on in the media and public sentiment.
Social Media Impact At the end of the Brazilian FIFA 2014 World Cup, it was estimated that “the month long World Cup... was responsible for more than 3 billion interactions on Facebook and 672 million messages on Twitter”. Social media was widely utilized to distribute information about events, issue updates and communicate the diverse experiences of the attendees and viewers, causing Sepp Blatter to say that “This has been the first truly mobile and social World Cup”. Impacts Communication
Impacts Communication, Economy
34. Stephen Wade: $100M to Brazil; World Cup Cost $15 Billion
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35. ESPN: World Cup Final Sets U.S TV Record.
PROPOSAL. THEORY OF CHANGE
FIFA, as an association, requires a branded framework for CSR
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FIFA SOCIAL VALUES The Framework Just as a company who manufactures goods can strengthen the clarity of their value to the consumer by consolidating their brand values, FIFA, as an association, requires a branded framework to help them structure and communicate their responsibilities to society. This framework of brand attributes can then be applied to any decision making process to evaluate the appropriateness of outcomes against a set of known values. Since we are proposing that FIFA should implement CSR in the form of structured and responsive due diligence (as opposed to making one specific initiative e.g. a scholarship fund), the framework must clearly relate to FIFA and the spaces in which they operate in order to be perceived as meaningful and authentic.
36. Benjamin Bidder: Stadium Sticker Shock: Costs Explode for Russia’s 2018 World Cup 37. Eddie Cottel: A Preliminary Evaluation of the Impact of the 2010 FIFA World Cup South Africa.
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This framework was developed by analyzing the existing claims made in FIFA’s vision and mission statements, and then combining these with the team’s tacit knowledge of their activities as an organization. The team defined FIFA’s main attributes as being structured into three major pillars: Sport, Rules and their role as an Association. Once we see FIFA within a the lattice of their operational context, we can extrapolate these three pillars into associated responsibilities and values.
FAIRNESS TRANSPARENCY STANDARDS
UNITY GLOBAL GROWTH
Rule Making The first pillar, of Rule-making for the game within the game links the brand directly to the values of: standards, fairness and transparency.
SKILL TEAMWORK HEALTH
Sporting The second pillar, Sport, has clear links to the values of: health, skill and teamwork — ideas that lie at the core of many of FIFA’s stakeholders who participate in and view the World Cup tournament.
Association The third pillar, of operating as an Association who, amongst other things, decides which country will host a global event, links directly to values of: international unity, global understanding and growth of the soccer fanbase. This highlights their unique value and the positive impacts that can be derived from these brand pillars.
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FIFA THEORY OF CHANGE SOCIAL VALUES The framework from the previous section of the report is implemented here as the first step in the FIFA Theory of Change. When considering their social responsibility, FIFA should draw on these branded values in order to guide and target their CSR initiatives. Design Since this is a branding exercise, designers can help implement this framework in order to maximize benefits to FIFA as a brand.
SPECIFIC RISKS Once a decision making framework is in place, FIFA will follow a process for collecting, evaluating and prioritizing the considerations that differentiate the current host nation. By including a panel of sector experts ranging from foresight, philosophy, sociology, design, business and other disciplines FIFA can map the societal sectors that will be most heavily affected. For example, a map of South Africa’s society in this sense will differ from that of Germany’s, Brazil’s or Russia’s. Design Designers can facilitate discussions by using their knowledge of the design process to visualize and map cultural variables.
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A
E
B
D RISK MITIGATION
C POSITIVE IMPACTS
From this deeper understanding, FIFA’s team will begin to develop standards for mitigating risks in each specific host nation. This will involve looking forward using foresight, design, urban planning and public policy to consider potential solutions and contingency plans for high priority risks.
After risks have been mitigated, the think tank will focus its attention on the potential of the World Cup Event. By this, we mean the way in which the resources of the World Cup and the host nation can be best leveraged to meet one major CSR objective tailored specifically for the needs the host nation.
Design Foresight strategies can be drawn upon in order to predict possible adverse effects of the event, including mapping trends, and weak or strong signals for change within the host nation.
Design Foresight strategies can be drawn upon in order to predict possible positive impacts of the event, including mapping trends, and weak or strong signals, in order to understand that nations susceptibility towards certain ideals.
ITERATIVE REVISION By collecting information on the impacts, the efforts of the CSR committee will be able to manage CSR impacts over the course of each World Cup event and also learn from the process to improve their next annual CSR initiative. Design As much of the design process involves iteration and improvement of a product or service based on quantifiable feedback, designers could be helpful in iterative revision in both gathering and visualizing feedback as well as ideating for change.
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POTENTIAL. EXAMPLES OF IMPACTS
They could incorporate CSR frameworks; ensuring that all stakeholders take part in the positive legacy of the event on the host nation.
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POSSIBILITY URBAN PLANNING
BIDDING FORESIGHT
Building world class soccer stadiums is the responsibility of the host country in preparation for the World Cup. It is however FIFA who designates specific cities and sites where the stadiums are built. The location of infrastructure is very important in preserving the legacy of the event in the host country and FIFA often overlooks the future economical impact the location of these stadiums will have on cities.
Quality bids cost millions of dollars to produce, therefore countries must consider all factors that will influence FIFA’s decision, and FIFA needs to maintain transparency in their motives for choosing one bid over another. If FIFA releases information about host countries which they are more likely to consider, it could prevent unnecessary spending in countries who lose bids based on factors which they felt were predictable but opaque.
As the 2014 World Cup in Brazil drew to an end, it was evident that 4 of the 12 stadiums would fail to attract the crowds needed in order to support the maintenance costs.
Impacts Transparency, Fairness, Standards, Understanding
Impacts Standards, Global Outlook, Growth Mindset
38. Francesca Perry: Could Brazil’s empty wold cup stadiums be turned into housing.
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LOCAL OUTREACH As the organizer of the World Cup, FIFA has the power to unite host nations for the duration of the event through initiatives such as fan-fests and other events. The opportunity to create an ethical and philanthropic CSR campaign is something that can easily be implemented by FIFA. Through partnerships with local health and community organizations, FIFA can utilize the sense of community and gathering of locals to promote initiatives that benefit the community as a whole. Impacts Transparency, Standards, Health, Teamwork, Unity, Understanding
COLLAB. CONSUMPT. As part of their CSR campaign, FIFA could take advantage of rising trends such as collaborative consumption. In order to ease the burden on host cities, who often have to spend most of their budget on building world-class facilities for the event, costs on unsustainable infrastructure could be reduced by utilizing the resources of the locals. For instance, FIFA could partner with AirBnB, Uber, or facilitate comparative “official” services, in order to provide cheap alternatives for visitors and inject cash directly into the homes of locals in the host cities. In this scenario, the costs of new hotels would be offset by opening rooms within homes, or utilizing empty seats in cars, instead of building transport infrastructure which is not sustainable- bringing the influx of capital related to tourism directly to the host nations citizens, and reducing costs for the government. Impacts Teamwork, Unity, Growth Mindset
SPONSOR MODEL FIFA’s commitment to its sponsors is what governs its restrictive approach to licensing during the event. Many of the negative effects, or lack of positive effects, on the host nation could be traced back to these licensing restrictions, which restrict local beers from being sold at events, local traders selling the wares in their preferred locations and prevent local businesses from holding any kind of promotion which outwardly references the World Cup, amongst other things. These restrictions from FIFA, which they strictly enforce, are for the benefit of the sponsors which fund most of the logistical costs of the event. Since FIFA is beholden to its sponsors, it is in fact the sponsorship structure which arguably prevents local businesses and brands from maximizing their potential to profit during the event. As part of FIFA’s contracts with their sponsors, since the world cup provides enormous exposure, they could incorporate some of their CSR frameworks into the sponsors agreements, ensuring that all stakeholders — including large corporate sponsors — take part in the positive legacy of the event on the host nation. Impacts Standards, Fairness, Global Attitude
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AFTERWORD. Conclusion The team has moved from broad research to highly focused frameworks and road-maps for branded CSR initiatives. Rather than proposing specific design solutions for future World Cup events, the team instead developed a branded framework for the values that FIFA can focus on to operate in harmony with their activity system. These values will be implemented over the course of a focused CSR process in which FIFA leverages research, foresight, design, philosophy, sociology and business to have a team perform risk mitigation. The final aim of this process is to produce a targeted, meaningful and authentic outcome for each World Cup event which is well matched to FIFA’s values and the structure of the host country.
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Over time, this process has the potential to increase FIFA’s brand equity and improve their perceived level of authenticity by tying the brand to a powerful value system. The final result, being a brand which is perceived as being responsible for their impacts, and contributing to brighter futures for communities worldwide through CSR.
APPENDIX. CITATIONS & PROCESS
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CITATIONS 1. FIFA : 2010 FIFA World Cup South Africa - Annual Report http://www.fifa.com/mm/document/ affederation/tv/01/47/32/73/2010fifaworldcupsouthafricatvaudiencereport.pdf 2. FIFA: About FIFA - FIFA World Cup http://www.fifa.com/aboutfifa/worldcup/ 3. Day Blakely Donaldson: FIFA, Non-Profit Organization Will Make $2B http://thespeaker.co/fifa-non-profit-organization-will-make-2-billionprofit-2014-world-cup-4-billiongross-pay-36-key-managementpersonnel-1-million-still-leavingmuch-unaccounted-un/ 4. Lio Perron : Ordinary Brazilians don’t want to play Ball with FIFA http://www.huffingtonpost.ca/ lio-perron/fifa-corruption-brazil_b_5485417.html 5. Aleksandra Jarecka: German Press About Fifa - felted, corrupted creature https://translate.google.com/ translate?hl=en&sl=pl&tl=en&u=h ttp%3A%2F%2Fwww.dw.de%2Fniemiecka-prasa-o-fifa-sfilcowany-skorumpowany-tw%C3%B3r%2Fa-17703800&sandbox=1] 6. International Standards Organization: ISO 14040.2 Life Cycle Assessment Principles & Guidelines
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7. Carol Weiss et al: New Approaches to Evaluating Community Initiatives Early formulationation of the Theory of Change http://www.seachangecop.org/sites/ default/files/documents/1995%20 Aspen%20New%20Approaches%20to%20Evaluating%20Community%20Initiatives.pdf 8. Owen Gibson: Fifa tells Australia to forget about £25m World Cup Bid Compensation. The Guardian. http://www.theguardian.com/ football/2013/sep/17/fifa-australia-world-cup-2022 9. Tariq Panja: FIFA rejects Investigator’s Appeal of World Cup Bids Report http://www.bloomberg.com/news/ articles/2014-12-16/fifa-panel-rejects-garcia-appeal-on-world-cupcorruption-report 10. Tariq Panja: Qatar Fit to Host World Cup Brazil Sports Minister Rebelo Says. Bloomberg. http://www.bloomberg.com/news/ articles/2014-12-03/qatar-fit-to-hostworld-cup-brazil-sports-minister-rebelo-says 11. Kenneth Rapoza: Brazil’s Anti-FIFA Protests: Not Little, But Definitely Late http://www.forbes.com/sites/kenrapoza/2014/04/16/brazils-anti-fifaprotests-not-little-but-definitely-late/
12. Benjamin Bidder: Stadium Sticker Shock: Costs Explode for Russia’s 2018 World Cup http://www.spiegel.de/international/ world/prices-explode-for-russianworld-cup-in-2018-a-981301.html 13. Eddie Cottel: A Preliminary Evaluation of the Impact of the 2010 FIFA World Cup South Africa. http://www.sah.ch/data/D23807E0/ ImpactassessmentFinalSeptember2010EddieCottle.pdf 14.IOL: Fifa’s Housing Stance Lamented. Abahlali.org. http://abahlali.org/node/6341/ 15. Jonathan Watts: Brazilian Riot Police Evict Indigenous People Near Rio’s Maracanã Stadium. The Guardian. http://www.theguardian.com/ world/2013/mar/22/brazilian-police-evict-indigenous-people 16. Qatar Labour Issue Not Fifa’s Responsibility. Aljazeera. h t t p : / / w w w. a l j a z e e r a . c o m / sport/football/2014/12/qatar-labour-issues-not-fifa-responsibility-2014122164623194384.html 17. FIFA: FIFA Mision & Statutes. http://www.fifa.com/aboutfifa/organisation/mission.html
18. Darren Heitner: 2014 FIFA World Cup Expected To Add $3.03 Billion To Brazil’s Economy http://www.forbes.com/sites/darrenheitner/2014/05/14/2014-fifa-worldcup-expected-to-add-3-03-billionto-brazils-economy/
27. Usayd Younis: It’s the most unequal country in the world: Rehad Desai on the future of South Africa https://ceasefiremagazine.co.uk/itsunequal-country-world-rehad-desaifuture-south-africa/
35. ESPN: World Cup Final Sets U.S TV Record. http://www.espnfc.com/fifa-worldcup/story/1950567/world-cup-finalmost-watched-soccer-game-in-ushistorymore-than-26-million-viewers
28. Quinton Fortune: South Africa spent £2.4bn to host the 2010 World Cup. What happened next? http://www.theguardian.com/football/2014/sep/23/south-africa-2010world-cup-what-happened
36. Benjamin Bidder: Stadium Sticker Shock: Costs Explode for Russia’s 2018 World Cup http://www.spiegel.de/international/ world/prices-explode-for-russianworld-cup-in-2018-a-981301.html
20. FIFA: FIFA Mision & Statutes. http://www.fifa.com/aboutfifa/organisation/mission.html
29. David Poort: Can the World Cup Leave a Positive Legacy? Aljazeera. h t t p : / / w w w. a l j a z e e r a . c o m / sport/brazil2014/2014/07/canworld-cup-leave-positive-legacy-2014713154127916527.html
37. Eddie Cottel: A Preliminary Evaluation of the Impact of the 2010 FIFA World Cup South Africa http://www.sah.ch/data/D23807E0/ ImpactassessmentFinalSeptember2010EddieCottle.pdf
21-22. Elizabeth Gorman: “Protests Gather against FIFA Exclusion Zones.” Aljazeera. http://www.aljazeera.com/indepth/ features/2014/06/brazil-world-cupprotests-gather-against-fifa-exclusion--201461413550951917.html
30. Raj Patel: Upside Down World Cup: How South Africa Has Cracked Down on the Poor and the Shack Dwellers. Democracy Now! h t t p : / / w w w. d e m o c r a c y n o w. org/2010/6/11/upside_down_world_ cup_raj_patel
38. Francesca Perry: Could Brazil’s empty wold cup stadiums be turned into housing. http://www.theguardian.com/ cities/2014/jul/18/brazil-empty-world-cup-stadiums-housing
23. Eddie Cottel: A Preliminary Evaluation of the Impact of the 2010 FIFA World Cup South Africa. http://www.sah.ch/data/D23807E0/ ImpactassessmentFinalSeptember2010EddieCottle.pdf
31. Quinton Fortune: South Africa spent £2.4bn to host the 2010 World Cup. What happened next? http://www.theguardian.com/football/2014/sep/23/south-afria-2010world-cup-what-happene
24. Peska, Mike. “South Africa’s World Cup Court: Sudden Justice.” NPR. NPR, 22 June 2010. http://www.npr.org/templates/story/ story.php?storyId=128012634
32. Germany’s World Cup Hails Economic Social Success. Deutsche Welle. h t t p : / / w w w.d w.d e / g e r m a nys-world-cup-report-hails-economic-social-success/a-2263053
25. Hughes, Rob. “Swift and Severe Justice at World Cup Courts.” The New York Times. The New York Times, 20 June 2010. http://www.nytimes. com/2010/06/21/sports/soccer/21iht-wcsoccer.html?pagewanted=all
33. Rupert Neate: “South Africa Recoups Just a Tenth of the 3 Billion Cost of Staging the World Cup”. Telegraph. http://www.telegraph.co.uk/finance/ newsbysector/retailandconsumer/ leisure/8192484/South-Africa-recoups-just-a-tenth-of-the-3bn-costof-staging-World-Cup-2010.html
19. Chapel, Bill. “Brazil Moves To Ease Soccer Beer Ban, As World Cup Spat With FIFA Grows.” NPR. NPR, 7 Mar. 2012. Web. 01 Feb. 2015. http://www.npr.org/blogs/thetwo-way/2012/03/07/148155110/brazil-moves-to-ease-soccer-beer-banas-world-cup-spat-with-fifa-grows
26. Reuters: Brazil Takes Advantage of the World Cup Crowds to Test for HIV http://www.ndtv.com/world-news/ brazil-takes-advantage-of-worldcup-crowds-to-test-for-hiv-578031
34. Stephen Wade: $100M to Brazil; World Cup Cost $15 Billion http://www.sport24.co.za/Soccer/ International/FIFA-returns-100m-toBrazil-20150121
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