Social Performance of NFL - Case Study Example

Social Performance of Organizations Introduction National Football League (NFL) is a sporting organization in the United s of America. Under its banner, leagues and teams from different states and clubs play their matches and provide sporting entertainment to the spectators. However, in the recent history, some critics have argued that the NFL should not be a non-profit entity but should give taxes; similarly, others have different opinions about its role and contribution towards corporate social responsibility in which it has different stakeholders including sponsors, spectators and team players as well. National Football League National Football League (NFL) is a sporting organization. NFL has 32 different teams and it has earned $ 9.5 billion besides being exempt from Federal taxes (Watson, 2014). Moreover, the NFL arranges different sporting events through which teams representing different states and football clubs play and perform their sporting activities. External Environmental Factors The withdrawal of sponsorship can become an external problem negatively affecting its success. Different local and international multinational firms from different industries sponsor particular teams and leagues as well. In this sponsorship activity, the sponsors not only provide financial incentives to teams and leagues but also encourage individual team members. Due to this active contribution and support from the companies, the NFL and its teams and leagues have been continuously providing sporting entertainment to the global and public sport lovers. In other words, NFL mainly relies on the external sponsorship and if this sponsorship is withdrawn, it would be very difficult for the NFL to continue maintaining its image and role in the world of sports. Tax exemption opposition can also affect the success of NFL. In a recent public survey, majority of respondents did not favor the tax exempt status of NFL but only 13 per cent identified NFL as not-for-profit entity (Watson, 2014). In other words, if the not-for-profit status is withdrawn from the NFL and the government requires it to pay taxes, it would severely affect the financial and operational performance of the NFL as it would experience a considerable decline in its revenue and a surge in its expenses in the shape of taxes. Three Salient Stakeholders and Their Roles and Relationships Team players The role and relationship of different team players is very significant for the NFL. It is a collective and major contribution of different teams working under the banner of the NFL which provide a strong sporting image to this football league. Individually, the performance of super-star sporting heroes is mainly seen as a way to increase sporting entertainment for spectators. In other words, without such performance from star players, the NFL would not be able to experience a rise in its popularity across the United States. In addition, it is the role of star players to provide their best performance while playing in the field. Sponsors Sponsors are a major stakeholder for the NFL. The importance of this stakeholder can be understood by the fact that the most of the teams are directly contacted by the sponsors and they provide maximum sporting facilities and other requirements necessary for providing better sporting performance in the field. In addition, it is the role of sponsors to ensure that the NFL regulations are fully satisfied and code of conduct is followed in its letter and spirit. Moreover, the sponsors and NFL as an organizer ensures that a healthy and competitive sporting environment is provided to teams. Spectators Spectators are a key stakeholder for any sporting event or match (Masterman, 2009; Ferrand and McCarthy, 2009). Without their presence, grounds and matches between different teams will not be useful. In other words, the entire purpose of developing, providing and maintaining the different teams, leagues and the players is only to provide sporting entertainment to the spectators. Based on this assessment, it can be suggested that the spectators are the most important stakeholders for the NFL as they are the one whose sporting entertainment is kept in mind while making or amending any rules and regulations pertaining to the NFL teams, leagues and players as well. Five Ways to Influence Organization’s Financial Performance Half-hearted Play If some players do not play with passion and motivation, it is possible that the spectators would not receive the expected level of sporting entertainment. In that case, it is possible that some spectators may stop coming to the stadiums which will directly affect the financial performance of the NFL because the decrease in the number of spectators will reduce the income of the NFL. Violation of Game Rules and Regulations If the players do not follow the game rules and regulations and they continue violating them deliberately and frequently as well, in that case , it is possible that spectators and sponsors may stop supporting and sponsoring the teams and team players which will consequently stop financial support from the sponsors. Irresponsible Behavior and Attitude of Players at Play Instead of playing responsibly, the players start demonstrating an irresponsible behavior in which they display compromising behavior and attitude during play. In that case, the spirit and purpose of game will be lost and all stakeholders including spectators, coaches, league owners, league sponsors, will not be satisfied with the performance of the players. Withdrawal of sponsorship Sponsors provide main financial support to team players and the NFL. While supporting their teams, sponsors bear their expenses and provide attractive incentives and offers as well in which the role and expenses of NFL are considerably decreased as the sponsors share their part by providing financial support to the team and team players. If this support is withdrawn, it is possible that the financial performance of the NFL may not remain the same but it may start diminishing. Stop Viewing Matches If the spectators display no interest in the NFL matches, it is possible that the NFL would not be able to continue receiving the current level of cash inflows because the spectators are a one of the prime sources of revenue for the NFL. Controversial Corporate Social Responsibility Discrimination is a harmful activity (Kendall, 2014). Discriminatory status for spectators can be a controversial corporate social responsibility of the NFL. In this policy, the NFL decides to overcharge the lower and middle class spectators while minimum or low stadium ticket charges are taken from the wealthy spectators. Based on this policy, it can be highlighted that many spectators would not be happy with this kind of policy and they would resist against it. Group Formation for Influencing the Organization Sponsors can play a better role against such discriminatory policy. For example, if the sponsors are required to become united against this policy and all sponsors must meet and discuss the issue. After the meeting, they should determine and implement a uniform strategy against the controversial corporate social responsibility step of the NFL. In this regard, it important to mention that the sponsors must raise their voice simultaneously and there should be a broad consensus on the issue and the way to work against the discriminatory policy Three Coalition Formation Challenges Some sponsors may not agree and they may be of the opinion that it is the internal policy matter of the NFL and it is unreasonable to interfere into the internal policy of the NFL. Consequently, this would not be a helpful sign for developing a broad-based coalition against the NFL’s discriminatory policy. At the same time, it is also possible that some sponsors may resist against the formation of coalition against the NFL. It is a normal trend that within a larger organization, grouping and lobbying are two common issues in which some groups favor their candidate or policy while other groups work against that candidate or policy. Some sponsors may become neutral. Sometimes, for some sponsors it becomes very difficult to decide their future line of action and carry out their strategy. If they are unable to make any decision, in that case, they prefer to remain neutral and distance themselves from any collation against the discriminatory policy. Methods to Overcome the Challenges Providing rationale and justification against the discriminatory policy can be a better way to overcome the challenges. For example, it can be suggested that the implementation of discriminatory policy will directly affect the NFL goodwill and team players as well. In addition, such approach will elevate the status of the rich whereas the poor will feel the sense of alienation. Consequently, this will create a class-based society which will only exist at the cost of this sporting entertainment. Moreover, it is highly unethical to discriminate spectators based on their earning and living status. By using these methods, the challenges can be overcome using a justified and valid rationale as well. Conclusion The NFL is a sporting organization. If it adopts a discriminatory policy against the spectators, the sponsors are justified to work against that policy by devising a collective strategy against the policy in which they use legal and moral grounds for promoting their point of view against the discriminatory policy of the NFL. References Ferrand, A., & McCarthy, S. (2009). Marketing the Sports Organization: Building networks and relationships. New York, NY: Routledge. Kendall, D. (2014). Sociology in Our Times: The Essentials. California, CA: Wadsworth Masterman, G. (2009). Strategic Sports Event Management. Miami, MA: Butterworth-Heinemann Watson, T. (2014). The Real Super Bowl Question: Should The NFL BE a Non-profit? Forbes. Retrieved: http://www.forbes.com/sites/tomwatson/2014/01/30/the-real-super-bowl-question-should-the-nfl-be-a-nonprofit/ Read More