On January 28 of this year, Larry Nassar, was sentenced to 40 to 175 years in prison after pleading guilty to several counts of sexual assault on minors. Larry Nassar was the former physical trainer for both the Michigan State and the United States Gymnastics program. Those within the gymnastics programs of both organizations would go to Nassar for their sport related injuries. However, Nassar would not preform his proper duties and instead sexually assault the young women. Nassar stated that while performing the horrific acts on the young women that his methods would help the girls through their injuries.
|Larry Nassar during his trial|
A stakeholder of a company is any person, organization, group, or society at large that has a stake within the business. In this case there were many influenced by the actions of Nassar. Firstly, the women abused, and the families of those women. These women have suffered because of the action from Nassar, and are the closest effected. The second group of stakeholders is the employees of U.S Gymnastics and Michigan State that swept everything under the rug, and in turn many of those aware of Nassar’s actions were fired. Another group of stakeholders is the fans of U.S gymnastics, as this controversy will most likely hang over the organization for quite a long time. Also, many of the fans of gymnastics will be more inclined to not watch U.S Gymnastics or Michigan State gymnastics because of this controversy.
|Former sponsor Under Armour|
The theory of individualism states that the main idea is to maximize the profits of the organization. This theory applied to those within U.S gymnastics as the fear of this controversy coming out would result in loss of sponsors. Their fears became true as many sponsors have left since the Nassar case has arisen. Under Armour, AT&T, Kellogg, Proctor & Gamble, and Hersey have all dropped their sponsorship with U.S gymnastics (Chicago Tribune). Sponsorships and marketing accounted for about a quarter of U.S gymnastics recorded revenue in 2015, which totaled $23.7 million. With losing the previously mentioned sponsors, they have lost close to 6 million dollars (Detroit News). U.S gymnastics will have to gain the trust of companies again in order to gain sponsorships that are needed to run the organization.
Connor, Tracy. “FBI Says Gymnastics Doctor Larry Nassar Recorded Abuse on Go Pro.” NBCNews.com, NBCUniversal News Group, 21 Dec. 2016, www.nbcnews.com/news/us-news/gymnastics-doctor-larry-nassar-hit-new-sex-abuse-claim-n698741.
Leonard, Kimberly. “Larry Nassar Sent to Maximum Security Prison.” Washington Examiner, Washington Examiner, 10 Feb. 2018, www.washingtonexaminer.com/larry-nassar-sent-to-maximum-security-prison/article/2648749.
Levenson, Eric. “Larry Nassar Sentenced to up to 175 Years in Prison for Decades of Sexual Abuse.” CNN, Cable News Network, 24 Jan. 2018, www.cnn.com/2018/01/24/us/larry-nassar-sentencing/index.html.
Novy-Williams, Eben. “Sponsor Leave USA Gymnastics after Nassar Scandal.” Detroit News, 23 Jan. 2018, https://www.detroitnews.com/story/business/2018/01/23/usa-gymnastics-sponsorships-larry-nassar/109741034/
Press, Associated. “Sponsors Flee Scandal-Plagued USA Gymnastics; Future Cloudy.” Chicagotribune.com, Chicago Tribune, 25 Jan. 2018, www.chicagotribune.com/sports/international/ct-larry-nassar-sponsors-flee-usa-gymnastics-20180125-story.html.