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Question 1

The controversy regarding the scandal in the regulatory body of soccer is not only affecting the status of FIFA, but also it is creating ethical issues and dilemmas for the sponsors also. Large brands such as, Coca-cola, Visa and Adidas are facing issues regarding their goodwill and reputation due to the scandal. They are indirectly getting connected with the scandal by sponsoring various football events (Traub 2015). From the perspective of ethical theories such as, utilitarian, justice and rights, sponsors are facing several issues and dilemmas.

Utilitarian theory states that, any actions can be termed as moral or ethical if it serves for the good of the majority (McGee 2014). In this case, the issue faced by the sponsors is that, majority of the football fans are not willing to see Sepp Blatter as the CEO of FIFA. Therefore, the continuation of the sponsorships by the organizations is not serving the majority. Major portion of football fans around the world are asking the sponsors to terminate their sponsorship contracts, which will force FIFA to prevent and investigate the scandal (Pielke 2013). Thus, majority is upset with the sponsors and it is affecting in their goodwill and reputation. Negative impression may be created among the customers for these organizations for supporting unethical behaviors of FIFA.

Sponsors are facing dilemmas in selecting the right side to opt for. On the one hand, they are facing the heat from the world media and social groups for sponsoring events of FIFA and on the other hand, they even cannot think of terminating their contracts with FIFA 

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