Essendon Football Club Scandal Essay

Scandals in Essendon Football Club (AFL affiliated)

A good corporate governance is fulfilled with the awareness of promoting ethical culture, accountability and transparency throughout their effective internal governance mechanisms that drive the organization towards its objectives and achieve its goals while also look at the stakeholders’ benefits. In year 2011-2012, image and reputation of Essendon Football Club (EFC) are heavily stroked by the investigation for performance enhancing drugs in its supplement program by Australian Sports Anti-Doping Authority (ASADA) and AFL. As a result, the club has been heavily sanctioned throughout ASADA and AFL investigation. This undisciplined club behaviour could be brought by weak corporate governance. A weak governance structure has a significant impact on the performance of the internal and external participants of the club.

In Essendon crisis, the main issue of its corporate governance was EFC was operating with weak governance structure. In the period under review, a number of management processes were found to be short-circuited or failed. Due to the loose management processes and controls,

However, it is important that EFC’s stakeholders enable to access the up-to-date information regardless of the positive or negative information. Again, in the annual report, there is lack of evidence about the number of stakeholder attended in the general meeting. Well, board should ensure that they are regularly provided with timely and accurate disclosures on all activities regarding the governance and performance of the club. Stakeholders are provided with a full review of the football department and football program. Maintaining relationship with stakeholders by establishing strong communication channels and positive value positions is the corporate governance mechanism which could save the club from crisis. (Ulmer,