Schieber (2013) opined that due diligence is the process by which the individuals gathers the information about the company they intend to merge, purchase as well as join as a director. In this particular report, an Independent Director is interviewed on two different sports level. One is international level sport organization and other is Australian sport organization. The international level organization is based on FIFA (Football) and Australian sport organization is Cricket (Abbott 2013). It becomes imperative that before joining the board, the Independent Director carriers out a process of due diligence to gather information about their processes, members as well as commitments with the organizations.
The report reflects on the due diligence report of an independent director who has been interviewed on different sports level such as FIFA (Football) and Cricket. It also analyzes the governance as well as ethical issues based on the skills, experience, leadership style, values as well as emotional intelligence of the role of the Independent Director. This particular report also outlines three questions that are asked during the Nominations Committee Interviews to the Independent Director (Tomlinson 2014). After ending of the interview, the Independent Director asks some questions to the committee those are related to pre-conditions before joining the organization. Finally, recommendations are given if the Director should accept the job role or not after the interview.
Analyzing of the governance and ethical issues
Governance Issues in International Level Organization of FIFA
Before joining the International Level Organization of FIFA (Football), the Independent Director monitors the policies as well as procedures on the legal compliance, maintenance of the internal controls as well as ethical conduct within the organization. The reason behind the FIFA comes under the spotlight concerns about the weakness of the corporate governance of the internal level organization (Simo and Vieira 2012). The governance issues that are identified into the FIFA report are failure to adopt the time limits towards the membership of the executive, introducing the independent members to the executive committee as well as adoption of the conflict. New measuring tools are developed into the world of the sports governance (Toffoletti 2015). The Sports Governance Observer tool enables to play the game, but the individual with serious commitment towards the sports governance includes people in charge of the sports organizations.
Governance Issues in Australian Sport Organization-Cricket
There are various types of issues prevailing in a criterion of any sports management. On the basis of this scenario, the prevailing government issues in Australian sports organizational management has been identified and analyzed (Sims, McHugh and Vicenzino 2014). The system by which the firm or organization is managed and directed. It influenced how the goals of the sports organization in Australia are achieved, set, rules and methods for developing the organization (Ullerich and Buscher 2013). The devotion to good governance practices and principles is critically crucial for all Australian sector sports organizational management. This may be particularly vital for a number of organizations highly dependent on funding of government. According to the various experts, the Australian session of sports has generally two type’s sessions (Chappelet 2015). There are various types of key reforms which generally includes impoverisation of organizational management strategic structures, zero tolerance and lack of transparency and public level company requirements.
The huge amounts of the money that is available to the offshore game will attract as well as pose the challenges to the Australia domestic cricket. The money is one of the most vital concerns at the top of the Australian Sport Organization and it is not well distributed to the lower levels (Bayle 2015). The team members rather than the countries influence the sports. While most of the team members are the private entrepreneurs. The governance principles of the Australian Sport Organization of Cricket suggest that the board adopts the risk management strategy as well as obtain proper insurance cover for the directors as well as committee members (Kilmister and Nahkies 2015).
Ethical Issues in International Level Organization of FIFA
The overall mission of the code of conduct of FIFA is to develop the game, touch the world as well as build a future (Chou 2014). The executive committee of the FIFA is the author of the ethical code of conduct as well as disciplinary codes. The codes specify the values as well as principles that are followed to behave within the FIFA. The ethical issues are as follows:
Integrity and ethical behavior issues: The members of the FIFA are facing the integrity and ethical behavior issues when they are not obliged to act ethically. Within the sports, ethical behaviors towards each other are considered as most important (Visevi, 2013). The members as well as the board of directors should not do such a behavior that is against the code of conduct of the International Level of Sport Organization of FIFA.
Respect and dignity issues: When the members are not behaving with respect to dignity, privacy as well as personal rights. Therefore, respect as well as dignity is the important code of conducts that should be followed by the team members of the sports.
Fair play: All the actions as well as decisions within the FIFA members are not practiced with respect to the rules as well as regulations (Committee 2013). Each of the sports organization has different rules as well as regulations against each game. Therefore, all the team members should follow all the fair play rules of the particular organization.
Compliance with the rules, laws and regulations: When the members are not respecting to the compliance to the internal rules as well as laws (Transparency.org 2016). Each of the members not only respects each other, but they also respect the rules as well as regulations of the organization. They should have to follow all that rules and laws.
Ethical Issues in Australian Sport Organization-Cricket
Illegal sport betting: It consists of fraudulent betting activities contrary to the law as well as links with the match fixing which an organized crime is for the Australian Sport Organization (cricket.com.au 2015). Even the online betting generates profits that are outside the control of the current government legislation as well as opportunities for the criminal activities (Cotterill 2014). This is most common ethical issues that most of the cricket organization faces.
Match fixing: The fixing of the result of the match is an ethical issue that meets with the context of the points spread. It deliberates towards the under performance of the Australian Sport Organization (Best 2014). The match fixing abuses the insider information in order to support a bet placed by the gambler those have recruits people in order to manipulate the outcomes. Therefore, the match fixing influences the results as well as sports the event to obtain the advantage as well as remove uncertainty associated with the sports. Match fixing is done in most of the Australia Sport Organization of Cricket (Transparency.org 2015). It should be mitigated by charging of strict rules against the person those are doing the match fixing.
Outlining the three questions asked during the Nominations Committee Interviews
- Have any directors recently left the board and under what circumstances?
This question needs to be asked to understand the present situations of directors in the committee. Sometimes it is important to understand the working principles of the role the author is about to get in (Chappelet 2015) .Because sometime it has been seen that the role is perfectly suited for you but somehow the working culture in the office or in this case the board of committee is not good. So this might lead you to leave the job after few months or even in few days that will create a bad impression in front of the board and moreover the author will feel bad about the wrong decision made for accepting the offer (Sims, McHugh and Vicenzino 2014). After ending of the interview, the Independent Director asks some questions to the committee those are related to pre-conditions before joining the organization. Finally, recommendations are given if the Director should accept the job role or not after the interview (Hassan and Boyle 2016). It has to be understood that if in case any director has left then what was the circumstances that he or she had left the board, it can be any personal reasons or it can be reasons related to his working style with other board of directors or else as discussed the working culture might be not be as professional as it looked (Schieber 2013). So basically the reason can be anything and the author need to evaluate the reason and then they can select the offer if they find the reasons to be justified.
- Do directors have regular input in helping to set the board agenda? What is the process?
This second question refers that if the author is been selected and accepted the offer than will he or she will be able to share their point of views in front of the board of committee (Ullerich and Buscher 2013). Basically the person who is been selected as an director how much role play does they have in order to set the agenda in front of the board and if there the answer is yes then what will be the process to do it (Guyon 2015). Being a director gives that extra bit of responsibility to understand the needs to be delivered in order to help the sports and their members to improve. A regular input is really required for any organization so that they can improve on those drawbacks and can work on the improvements of the organization. The process to suggesting some agenda’s in any organization has to have a pre-defined process that needs to be follow (Bayle 2015). In some organization the directors can directly set the agenda’s in front of the other board of directors and in some other firms there are some specific rules of presenting the agenda’s which is been filtered by the CEO of the organization and then can be presented in front of the board.
- How open is the CEO to board challenge/input? ‘
It is the most important question among the other two questions that has been asked. The reason is that any organization Chief executive officer (CEO) needs to have an open minded and need to be opened to undertake some new inputs and challenges. The firm in this case the organization related to sports, the CEO of this firm needs to be open to accept new challenges and inputs (Shimizu and Fatrias 2013). Because now and then things cannot be the same and the CEO needs to accept some challenges and inputs that will improves the firm infrastructure and working culture. It is important that the CEO needs to be open-minded otherwise even if the independent directors are making tons of effort for the firm it will be off no use if the CEO is not at all ready to accept the change or is afraid to take risk (Chappelet 2015). It is more important that the CEO has to be smart enough to select which risks need to be undertaken and which inputs to be included in the firm.
Considering the pre-conditions for joining the Board/Executive Committee
There are some important pre-conditions that the author asked and need to be cleared before accepting the job offer. The questions are mentioned below and why the author asked the question is mentioned as well in this section. This may comprises of: Apart from the salary package the author needs some extra benefits, health Insurance needed, dental Insurance needed, notice Period, leaves Considerations, firm-Issues Cell-phone, work timings, quality Package or stock and bonuses. The details are provided below:
Apart from the salary package the author needs some extra benefits: Some companies do not provide extra benefits such as allowance or other expensive (Goral 2015). The author expects that the firm should accept extra bills to be paid such as travelling allowances, phone bills and etc.
Health Insurance needed: A health insurance is important for every individual and the author is expecting that the health insurance needs to be covered (Hassan and Boyle 2016). The health insurance needs to be calculated till his service period in the organization. It is the most common pre-conditions that are placed by the Independent Director.
Dental Insurance needed: A dental insurance is also necessary and if the firm covers the insurance what is the plan for it (Sefiha and Reichman 2016). The dental insurance needs to be covered till the service ended in the organization.
Notice Period: The author can only serve a notice period of 15 days after the author place an application for resignation from the position. The firm has to relieve the author after the notice period is served properly (Committee 2013).
Leaves Considerations: The leaves consideration is important and the author needs to check about the leave plans the firm has and what the process of taking leaves is?
Firm-Issues Cell-phone: The author is needs the company cell-phone for communication purpose and the bill will be considered by the company as an extra allowance (Schieber 2013). It is the most important extra allowance that are required as now-a-days most of the work are conducted through the use of cell phones.
Work Timings: The working hours need to be flexible as the author travels from far and in some case is there any chance of working from home. In case of any emergency, the author demands to work from home as in some cases it is not possible to go to office.
Equality Package or Stock: The firm needs to provide me some stock shares or equality package.
Bonuses: The firm needs to give bonus to the author if the firm makes a profit. The bonus has to be given separately and it can be anytime in a year (Hern et al. 2013). Suppose a firm has made profit thrice a year than a bonus need to be shared with the author. It should also be given on special days as well as occasions.
Decision on accepting the offers during the interviews
The Independent Director accepts the offer of Australia Sport Organization of Cricket as the framework of the organization of governance consists of enabling the strategic guidance of the entity, ensuring the effective monitoring of the management by the board. It clarifies the effective roles, powers as well as responsibilities of the board (Simo and Vieira 2012). The framework of the organization also ensures that it balances the authority such that no single individual has unfettered the powers (Kampmark 2013). The governance structure of the organization features separation of the powers as well as responsibilities among the board as well as chief executive director as well as their staffs. As per the governance issues, the money is one of the most vital concerns at the top of the Australian Sport Organization (Kerr and Barker-Ruchti 2014). Within this organization, the executive director can operate on the principles such as the Structure for Sport, board commission as well as operation, sport transparency, governance system for the ethical decision-making and processes the sport board.
The governance structure of Australian Sport Organization consists of various legal consequences, legislation as well as law that operate in order to constrain the board of operations. As an Independent Director, the person can implement the constitutions of the sports, its rules as well as policies (Lemmer 2013). The governance principles of the Australian Sport Organization of Cricket suggest that the board adopts the risk management strategy as well as obtain proper insurance cover for the directors as well as committee members. The director accepts the offer as after recruiting as the Independent Director, the person can put his or her own point of view towards the executive committee (Tomlinson 2014). The Australia Sport Organization gives extra allowances as compared to International Level Organization of FIFA. Healths as well as Dental insurance are given to the Independent Director so that the person can continue their service with the organization (Pritchard 2016). Both the insurance services are given to the person till their service period within the organization. Apart from this, notice period, notice considerations, issues of cell phones, work timings; equality packages as well as bonuses are also put as the pre-conditions before the executive board from the side of the Independent Director (Ullerich and Buscher 2013). After analyzing the due diligence report of both the organizations, the Independent Director identifies that the Australian Sport Organization should fulfill all the pre-conditions of the person.
It is concluded that in this report two of the different sport organizations are chosen such as the international level organization is based on FIFA (Football) and Australian sport organization is Cricket. The executive board takes the interviews of the Independent Director for two of the sports organization. Between the two organizations, the director offers the post for the Australian Sport Organization as it gives more benefits as compared to International Level Organization. The structure of the governance of the Australian Sport Organization consists of the power as well as responsibilities of the chief executive director. After doing the due diligence of the organization, the Independent Director observes that the Australian Sport Organization faces two of the vital ethical issues such as match fixing as well as illegal sport betting.
The Independent Director asks some questions to the board of the members such as if there is any such director who has left the board of any reasons. It is required to know to avoid any problems in the future regarding the job role. The question is that if the director has any regular input to help in order to set the agenda for the board. Lastly, the priority question is that how open is the CEO to the board challenges as well as inputs. After ending of the interview, the Independent Director asks some questions to the committee those are related to pre-conditions before joining the organization. The governance principles of the Australian Sport Organization of Cricket suggest that the board adopts the risk management strategy as well as obtain proper insurance cover for the directors as well as committee members. All these questions are required to know before recruiting as the Independent Director.
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