Case Study 4: Cheating and NASCAR: Who’s at the Wheel?
ACC 571: Forensic Accounting
May 29, 2012
My first thought when I hear NASCAR, is cars, fans and a whole lot of noise. Who knew that it is one of the top selling sports in the USA. According to the article “10 Interesting NASCAR facts”, There are over 75 million NASCAR fans in the United States and over 6 million attended races in 2010. NASCAR has grown increasingly in its popularity and is now the second largest grossing sport.
NASCAR founder William France “Bill” France Sr. founded the sport in 1948. Bill was a mechanic and auto shop owner from Washington, DC. He moved to Daytona Florida in the 1930’s. At the time, ...view middle of the document...
So, they often try to find a loophole. But, when they do this, NASCAR officials will quickly label them as a “cheat”. The point that crew chiefs are trying to make is that if it is just a minor modification that needs to be make, why does NASCAR have such a hard time with accepting that?
These days, NASCAR is handing out some pretty hefty penalties. Past fines have been as large as $100,000. With some suspensions spanning over months. The bad thing though, is that some teams are getting points taken away from them. Teams have lost as many as 150 points. Which means that they ended up in sixth place. The more points that are taken away, the lower a team will end up in the rankings.
Cars have to get more detailed inspections several times during every race. All stock cars are checked before they even practice to qualify. These same cars will be checked before qualifying if they win the pole. The winner of the race, along with five other randomly selected contenders, will be evaluated during the post race inspection process.
Currently, NASCAR has techniques to determine who the cheaters are. The inspectors for this sport verify all the dimensions including frame of the car, test car engine and mark parts in order to ensure a level playing field for all the participants at every race. Cheating doesn’t just stop at a couple of teams wanting to get one over on the officials. Almost all contenders have now come up with their own for of getting around the system.
The stress to reach the goals that sponsors set for you is another reason that employees evade the rules and policies that the NASCAR establishment has set forth. Members from dissimilar organizations are normally trained on unlawful behaviors as part of their standard duties and influence. This practice sometimes sends the imaginations of NASCAR drivers down the wrong path.
Discuss three (3) aspects of the organizational culture at NASCAR that contribute to unethical behavior.
The control that NASCAR has over these stock car races is subject to misuse because of the self-sufficiency they enjoy by influencing an unparalleled judgment, levies penalties and occasionally, only accounting for one side of the situation, revoking penalties already levied on an affiliate. The culture of impunity by the NASCAR executives deems all the efforts being put to reduce this prehistoric habit by the participants. The organizations top directors and owners support ethical practices by example.
In peeling the investment they have in the worldwide speedway corporations. These firms will go the distance to prove that all race track owners have an equal right to host the Nextel cup races. Bill France and family have an undue advantage over other tack owners because of the synergistic relationship between NASCAR and ISC ~ International Speedway Corporation (owns and manages thirteen of the best auto racing tracks used in the Nextel cup races). This cross tenure allows...