Case Study 2: National Collegiate Athletic Association Ethics and Compliance Program
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TranscriptofCASE6.docxTranscript of CASE 6: NCAA ETHICS AND COMPLIANCE PROGRAM
CASE 6: NCAA ETHICS AND COMPLIANCE PROGRAM
NCAA PENALTIES The NCAA tries to ensure the penalties fit the violation if misconduct does occur. Penalties are handed down in a timely manner, to maintain a credible and effective enforcement program. Employees are exhorted to have high ethical standards since they work among and influence young people.
NCAA VIOLATIONS Secondary violations: least severe and can result in fines, suspensions for games, and reduction in scholarships. Major violations: Some of the penalties are the same as secondary violations, but the scope is far more severe. Also some penalties are specific to major violations, such as public reprimand, probationary periods, and limits on recruiting Repeat violations: Violations that have occured within a five-year period from the the start date of a previous initial violation. These are most severe, including elination of all financial aid and recruiting activities and resignation of institutional staff.
NCAA OVERVIEW NCAA formed in 1906 under premise of protecting student-athletes from being endangered and exploited Divided into three division based on competitiveness. Divisions I, II, III Each Division can establish presidents or other university officials to write and enact poicies, rules and regulations for their divisions Every Division is ultimately governed by the Preident of the NCAA and the Excecutive Committee. The NCAA establishes principles, rules, and enformcement guidlenes to both guide the universities in their oversight of the athletics department as well as penalize those failing to regulate their own misconduct
FRAMEWORK FOR ETHICS AUDIT 1. Securing the commitment of the firm’s top management and/or its board of directors. 2. Establishing a committee or team to oversee the audit process. 3. Establishing the scope of the audit. 4. A review of the firm’s mission, values, goals, and policies. 5. Identifying the tools or methods used to measure the firm’s progress. 6. Having an independent party 7. Reporting the audit findings to the board of directors and top executives and, if approved, to external stakeholders and managers. ETHICS AUDIT & BENEFITS An ethics audit is a systematic (tool) evaluation of an organization’s ethics program and performance to determine whether it is effective. A social audit is the process of assessing and reporting on a business’s performance in fulfilling the economic, legal, ethical, and philanthropic responsibilities expected of it by its stakeholders. Benefits: Provides an opportunity to measure conformity to the firm’s desired ethical standards. The auditing process can highlight trends, improve organizational learning, and facilitate communication and working relationships. Auditing can also help companies assess the effectiveness of their programs and policies, which often improves their operating efficiencies and reduces costs. Improves relationships with stakeholders who desire greater transparency. SELF REPORTING AND MONITORING STUDENT ATHLETES Universities that monitor their athletics programs so minor violations are caught immediately and reported to the NCAA are less likely to be involved in major scandals. NCAA approached Boise State NCAA approached the University of New Mexico Many of these issues involve providing college athletes with special favors The NCAA and universities are mindful that most collegiate athletes do not enter professional sports and will have to find a career outside of athletics. Therefore, any attempt to treat collegiate athletics like professional sports could be detrimental.
OHIO STATE UNIVERSITY NCAA rules state it is illegal for a Division I football player to receive any benefit from anyone that is not offered to the public. December 2010 fiver players on Ohio State's football team were suspended for using gear supplied by the football team to barter for cash and tattoos. Following the bartering scandal, the NCAA suspended three other players for accepting money from a booster. Additionally, other players were suspended for being overpaid by the same booster for work in a summer job. Penalties Banned a bowl game appearance 2012 Took five scholarships away for 3 years One-year probation Jim Tressel: Show-cause order
UNIVERSITY of ARKANSAS Head Coach for University of Arkansas, Bobby Petrino A motorcycle accident in early 2012 revealed a latent scandal brewing for several months He claimed he was riding alone, but eventually admitted he rode with Jessica Dorrell, a 25-year-old former student who Petrino hired as the Student Athlete Development Coordinator just a week prior. He admitted they were involved in an inappropriate relationship. The Athletic Director of the University of Arkansas Jeff Long fired Petrino Scandal for two reasons Petrino was married with four children He had hired Dorrell without stating to the university there was a conflict of interest due to their personal relationship.
PENN STATE UNIVERSITY 2011 Accusations arose alleging that a former assistant coach of the football team sexually assaulted at least eight young boys over the course of many years. FBI officials indicated the coach and school officials covered up these crimes Although Joe Paterno did report the crime to campus officials, some felt it was his responsibility to do more to ensure the crimes were reported to the proper authorities. Joe Paterno had been head coach for more than 60 years at the time of the scandal.
PENN STATE PENALTIES NCAA agreed the misconduct was partially the fault of the football program's and Penn State's complacency. NCAA imposed sancations costing $60 million in fines Four-year post season ban until 2016 Four-year reduction in scholarships amounting to ten scholarships per year for the football program The football team's wins between 1998 and 2011 were vacated. NCAA also put ten corrective sanctions on Penn State formulated specifically for the university to take on at an institutional level.
NCAA CHALLENGES FOR ETHICS AND COMPLIANCE For many universities, it is a business that brings millions of dollars. The question is whether schools ignore issues taking place because of the amount of revenue brought in. Challenge is to how to ensure college sports teams coply with ethical policies as well as combating the tendency for colleges to remain complacent because of the success of the sports teams
NCAA IN QUESTION NCAA Investigator, Ameen Najjar, worked on investigating reports of rule violations from the University of Miami. Najjar was promptly dismissed from the NCAA when it was found he was going outside the
NCAA's rules of investigation to collect evidence The NCAA faces lawsuits Lawsuit challenges NCAA amateur model. NCAA claims non-profit status because athletes are not compensated for their performance. This is true while NCAA topped nearly $1 Billion in revenue in 2014. Ed O'Bannon vs. NCAA. EA Sports has had a long standing contract with NCAA to create video games replicating players "likeness" while these players have received no compensation.
