Harvard Case - Are Non-profit Organisations Subject to the Fundamental Rights? The Case of the Board of Cricket Control in India
"Are Non-profit Organisations Subject to the Fundamental Rights? The Case of the Board of Cricket Control in India" Harvard business case study is written by Akhileshwar Pathak. It deals with the challenges in the field of Business & Government Relations. The case study is 12 page(s) long and it was first published on : Dec 4, 2017
At Fern Fort University, we recommend that the Board of Control for Cricket in India (BCCI) proactively engage with the Indian government to establish a clear and transparent framework for its operations, balancing its role as a sports governing body with its responsibilities as a public entity. This framework should address the fundamental rights of stakeholders, including players, fans, and the public, while ensuring the BCCI's autonomy and ability to effectively manage cricket in India.
2. Background
The BCCI, a non-profit organization, is the governing body for cricket in India. It holds significant influence in the sport, generating substantial revenue through broadcasting rights, sponsorships, and ticket sales. This case study explores the legal and ethical complexities surrounding the BCCI's status as a non-profit organization and its relationship with the Indian government. The case highlights the tension between the BCCI's autonomy and its responsibility to uphold the fundamental rights of its stakeholders.
The main protagonists are the BCCI, the Indian government, and the stakeholders, including players, fans, and the public. The case study revolves around the question of whether the BCCI, despite being a non-profit organization, is subject to the same fundamental rights as other entities in India.
3. Analysis of the Case Study
This case study can be analyzed through the lens of business and government relations, corporate governance, and corporate social responsibility.
Business and Government Relations: The BCCI's relationship with the Indian government is complex and fraught with challenges. The government's desire to exert control over the BCCI stems from its significant economic and social impact, particularly in a country where cricket is a national passion. The BCCI, on the other hand, seeks autonomy to manage the sport effectively and generate revenue for its stakeholders. This tension highlights the need for a clear and transparent framework that balances the interests of both parties.
Corporate Governance: The BCCI's governance structure has been criticized for its lack of transparency and accountability. The case study raises questions about the BCCI's internal decision-making processes, the role of its elected officials, and the allocation of resources. The BCCI's governance structure needs to be aligned with best practices, ensuring transparency, accountability, and the protection of stakeholders' interests.
Corporate Social Responsibility: The BCCI has a significant social responsibility to its stakeholders, including players, fans, and the public. This responsibility extends to promoting ethical practices, ensuring fair play, and contributing to the development of the sport. The case study raises questions about the BCCI's commitment to these principles and its ability to balance its commercial interests with its social responsibility.
4. Recommendations
Establish a Clear Framework: The BCCI and the Indian government should collaboratively develop a framework that defines the BCCI's role, responsibilities, and governance structure. This framework should address the following:
- Governance Structure: Establish a transparent and accountable governance structure with clear roles and responsibilities for elected officials and management.
- Financial Transparency: Implement robust financial reporting and auditing mechanisms to ensure transparency and accountability in the use of funds.
- Stakeholder Engagement: Establish mechanisms for regular and meaningful engagement with stakeholders, including players, fans, and the public.
- Dispute Resolution: Develop a clear and independent dispute resolution mechanism to address conflicts between the BCCI, stakeholders, and the government.
Promote Good Governance Practices: The BCCI should adopt best practices in corporate governance, including:
- Independent Board: Ensure a diverse and independent board of directors with expertise in sports management, finance, and law.
- Code of Conduct: Implement a strict code of conduct for all board members, officials, and players to promote ethical behavior and prevent conflicts of interest.
- Transparency and Disclosure: Publish annual reports, financial statements, and other relevant information to enhance transparency and accountability.
Embrace Corporate Social Responsibility: The BCCI should prioritize its social responsibility by:
- Developing Grassroots Cricket: Invest in grassroots cricket development programs to promote the sport at the local level.
- Promoting Diversity and Inclusion: Ensure equal opportunities for all players, regardless of gender, caste, or background.
- Supporting Community Initiatives: Allocate a portion of its revenue to social initiatives that benefit communities.
Engage in Public-Private Partnerships: The BCCI should explore public-private partnerships with the government and other stakeholders to leverage resources and expertise for the development of cricket infrastructure and programs.
5. Basis of Recommendations
These recommendations are based on the following considerations:
Core Competencies and Consistency with Mission: The BCCI's core competency lies in managing cricket in India. The recommendations aim to enhance its governance structure, financial transparency, and social responsibility, aligning its operations with its mission of promoting and developing the sport.
External Customers and Internal Clients: The recommendations consider the interests of external customers (fans) and internal clients (players). By promoting transparency, good governance, and social responsibility, the BCCI can build trust and strengthen its relationships with stakeholders.
Competitors: The BCCI faces competition from other sports and entertainment options. By focusing on good governance, financial transparency, and social responsibility, the BCCI can differentiate itself and enhance its appeal to stakeholders.
Attractiveness: The recommendations are expected to enhance the BCCI's attractiveness to investors, sponsors, and broadcasters, leading to increased revenue and resources for the development of cricket.
Assumptions: These recommendations assume that the BCCI and the Indian government are willing to collaborate in good faith to develop a framework that balances the interests of all stakeholders.
6. Conclusion
The BCCI, as a non-profit organization with significant influence and resources, has a responsibility to uphold the fundamental rights of its stakeholders and operate with transparency and accountability. By embracing good governance practices, promoting social responsibility, and engaging in constructive dialogue with the Indian government, the BCCI can ensure a sustainable future for cricket in India while fulfilling its role as a public entity.
7. Discussion
Other alternatives not selected include:
- Complete Government Control: The government could assume complete control over the BCCI, eliminating its autonomy. This option could lead to political interference and hinder the BCCI's ability to manage the sport effectively.
- Status Quo: The BCCI could continue operating as it has been, with limited transparency and accountability. This option could lead to further criticism and erode public trust in the organization.
The main risks associated with the recommendations include:
- Resistance from the BCCI: The BCCI may resist changes to its governance structure and financial transparency.
- Political Interference: The government may use its influence to interfere in the BCCI's operations.
- Lack of Commitment: The BCCI may not fully commit to implementing the recommended changes.
8. Next Steps
To implement these recommendations, the following steps should be taken:
- Establish a Joint Task Force: The BCCI and the Indian government should establish a joint task force to develop the framework outlined in the recommendations.
- Consult with Stakeholders: The task force should consult with stakeholders, including players, fans, and the public, to gather feedback and ensure their interests are represented.
- Implement Governance Reforms: The BCCI should implement the recommended governance reforms, including establishing an independent board, adopting a code of conduct, and enhancing transparency and disclosure.
- Develop Social Responsibility Programs: The BCCI should develop and implement social responsibility programs to promote grassroots cricket, diversity and inclusion, and community initiatives.
- Monitor and Evaluate: The BCCI and the government should regularly monitor and evaluate the implementation of the framework and make adjustments as needed.
By taking these steps, the BCCI can navigate the complex relationship with the Indian government, ensure its long-term sustainability, and fulfill its responsibility to its stakeholders.
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Case Description
The case discusses the issues related to Zee Tele Films Limited's claims that the Board of Cricket Control of India was "state" and could act arbitrarily in the award of telecasting rights. The "state" as defined in Article 12 includes "other authorities", and these are subject to the constitutional limitations. The right to equality requires them to not act arbitrarily. A body which is an instrumentality or agency of the government is "other authority". The term has been subject to judicial interpretation. The Supreme Court, by a majority judgement, in the Zee Tele Films Case ruled that the Board is not "other authorities" within Article 12 of the Constitution.
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