Nov
2013
Case Study 5: Soccer tournament
Facts:
– Street youth has a huge impact on the local economy.
– Noah launched a venture to empower the street youth with more confidence and social skills.
– The Soccer for Youth Empowerment Tournament, founded by Noah, trains both female and male street kids, and provides opportunities to some kids to travel to other cities to compete.
– Youth involved in the program can get to know the sponsoring businesses and are more likely to be hired by local businesses.
– 20 countries are involved in the program and about 30,000 youth benefit per year.
– Nikididbok decided to sponsor the tournament and becomes the largest sponsor (80% of $5 million) for the tournament to achieve both the social and economic potential.
– Nikididbok threatens Noah to change the focus from street youth to males over 18 to make it more intense.
– Last year, some youth were found sniffing glue before playing the game.
– The tournament will be forced to scale down when losing 80% of the donation.
– You have a week to decide
Ethical issue:
Is it ethical for Nikididbok to abuse its privilege as the biggest sponsor of an NGO?
What to be decided:
Should Noah object Nikididbok’s idea with the risk of scaling down the tournament significantly? Or should Noah obey Nikididbok while violating the initial social mission?
|
Stakeholder |
Motivation |
|
Noah |
– Social goal 1st – Want the maximum reach of street youth – Jobs for kids – Do not want to lose 80% sponsorship suddenly |
|
Nikididbok |
– Want to continue achieve more social and economic potential – Want to make the tournament more successful – More exposure – Good public relationship |
|
Youth involved in the tournament |
– Want to benefit from it – Improved lives – Same format of the tournament as before |
|
Adult males |
– Want to be benefited from the tournament |
|
Local communities |
– Do not want to be negatively affected by the street youth problem |
|
Other donors |
– Want the tournament to continue achieve its social impact – Do not want the public relationship stolen by Nikididbok |
|
Host Countries |
– Tournament to happen – Help street kids – Economic benefit |
Other solutions:
Solution 1:
Have two tournaments, and the street youth tournament will be sponsored by the adult tournament’s profit/ membership fee.
Solution 2:
Invite youth used to be in the tournament back, and hold an All-star tournament, and let those youth sponsor the street youth tournament.
Our solution:
Approach Nikididbok’s competitors as potential sponsors, and evenly distribute the donation in the future.
The proposed solution is better than the 1st solution is because the 1st conclusion cannot prevent Nikididbok coming up with similar proposal. The 1st solution is appealing in the short term, however, in the long term, the more exciting adult tournament will gain much more attention from the public and the local companies, and the street youth tournament will lose its meaning, and the street youth involved in it will feel discriminated.
The proposed solution is better than the 2nd solution is because the street youth tournament’s cost is too high for the former street youth who just found their jobs to bear.
Pros for the proposed solution:
– Can still achieve the social mission of the tournament
– The format of the tournament will not be changed.
– Can prevent similar things happening again, because by evenly distributing the donation, you do not highly rely on any of the sponsors.
Cons for the proposed solution:
– Within only a week, it is hard to find enough money to substitute the donation received from Nikididbok
– Will completely ruin the relationship between you and Nikididbok.
Action:
Find Nikididbok’s competitors in the industry, show them how Nikididbok benefits from sponsoring the tournament, point out Nikididbok is threatening you to violate your tournament’s initial social mission, which is not appropriate and ethical, and that is the reason you are asking for sponsorship from them.
On the other hand, educate the youth in the tournament the harm of sniffing glue, and invite former street youth involved in the tournament before back, show them how their lives are changed in a better way, and establish a model for the other street youth.
Once the new donations are ready, gradually evenly distribute the sponsorship to make sure none of them has the absolute advantage over others.
Impact on the venture:
Technology:
Facilitate the development of a more efficient way to manage the sponsorships’ distribution.
Economic:
Help with the unemployment rate. When the street youth are not in the tournament anymore, they’ve had enough skills to find a long-term job. Also, the tournament can boost the economy in the host countries.
Social:
Contribute to the street youth problem: street youth will find new mission in their life, instead of wandering around on the street stealing and robbing.
Environmental:
No direct impact on the environment