Group: Angelina Penza, Ranni, Maaz, Fiaz, Mahir, Nancy

While traveling through Philadelphia in the summer of 2017, Ugochi Wilson got mugged by a young man in a high-crime neighborhood. Ugochi was deeply affected and moved by this incident and started researching the challenges faced by young people in urban centers and the work done by non-profits to support them. She was astounded by how significant and complex the street crime issue was and how it impacted every aspect of life in these communities. Talking to local nonprofits educated her on the challenges of poor education and systemic racism that strengthened the school-to-prison pipeline and trapped youngsters in the vicious cycle of poverty. In conversations with the primary stakeholders, it became evident that the young people lacked the voice and vision to bring forth their concerns and co-create viable solutions with various government actors, non-profits, and local businesses. Ugochi, a serial entrepreneur, launched a social venture to give these vulnerable youth a voice and build their confidence to become employable and responsible adults. Ugochi launched a multi-pronged approach against homelessness and hopelessness through the global language of soccer. She founded the Soccer for Youth Empowerment Tournament (SYE-T). SYE-T engages vulnerable young people in urban city centers across the U.S. in soccer coaching and tournaments. SYE-T staff members coach soccer camps in various cities and form city teams that participate in regional tournaments every three months. Over the course of a week, the young people play soccer, participate in leadership workshops, explore career pathways, and strengthen their communication and teamwork skills. These young people develop a growth mindset and learn how to channel their passion and talents to create happiness for themselves and others. The winners of the regional competitions compete for the national title once a year. Even the teams that don’t make it to national level attend the week-long tournament for personal and professional development. They learn how to socialize, relate with others, and become responsible adults. Local businesses in all of the host cities like to interact with and hire these youth. Today, although only 400 players from 20 cities compete in the regional tournaments, it has been estimated that about 30,000 youth benefit every year from pre-selection training and program engagement. The first three tournaments that Ugochi organized had a total budget of about $100,000 which she raised from more than 600 supporters. The contributions ranged from $10 to $10,000 and many of them came with hand-written notes expressing their gratitude and support. One-third of the funds came directly from the youths’ communities. Ugochi was successful in securing in-kind support — uniforms to plane tickets to food and lodging — from over 50 organizations. Schools and churches provided their grounds for practices, healthcare systems provided free check-ups and preventive health education, and local photographers gifted them professional headshots. The supporting businesses had the opportunity to get to know some of these bright young people and hire them. Local community colleges and universities opened their doors and helped these marginalized youth explore opportunities for higher education. In 2019, a major shoe manufacturer (we’ll call them…Spikey) sponsored the program to the tune of $2 Million which enabled Ugochi to expand the number of participating cities from 5 to 15. Spikey received excellent publicity through SYE-T, and their sales in participating cities skyrocketed. Spikey quickly recognized the opportunity for financial gain while projecting a socially-progressive brand image. Over a period of five years, their tax-free donation increased from $2 Million to $6 Million, which enabled thousands of young people from over 20 cities to participate. During those same five years, the entities providing Ugochi with in-kind support started dropping out, grossly raising the overall cost of the event (though all of the expenses were covered by Spikey). Gone were the workshops on finding purpose and building community. There were no professional headshots or rope courses to build teamwork skills. But there was more soccer, more competitive than ever, and for many more youth. 

 

Part 1: Fast forward to August 2024. Ugochi has found herself in a difficult situation, for it has come to light that three of the contractors that manufacture Spikey’s shoes in Cambodia employ children under the age of 12 at their facilities. One contractor restricts employment to 20 hours a week and, through their “study to-work program,” mandates that children attend an on-campus school before they are allowed to work and support their families. The other two contractors expect the children to work upwards of 60 hours a week and provide no educational benefits. Spikey executives insist that the contractors are in compliance with Cambodian law and their PR staff are working aggressively to contain the fallout from the story. They have assured Ugochi that they remain steadfast supporters of SYE-T and might even increase the level of sponsorship with some strings attached. Ugochi is concerned not just about the labor practices employed by Spikey and their contractors but also how SYE-T is striving to address a major challenge in the U.S. while being complicit in perpetuating a similar problem abroad. She is wondering whether she should continue accepting sponsorship from Spikey or not. If you were Ugochi, what would you do? 

 

Part 2: Ugochi has a meeting with the head of Corporate Social Responsibility (CSR) for Spikey. Mr. Mikey evades all questions about the Cambodia situation and insists that there is nothing to worry about. Based on his conversations with senior management, he proposes that the focus of the competition should not be on vulnerable youth. After all, last year there were a few confirmed incidents of youth smoking marijuana before playing soccer, which creates bad optics for Spikey. Also, Spikey wants the competition to only include men over the age of 18 to make it more competitive. Mr. Mikey makes an off-hand comment that there isn’t much interest in women playing soccer anyway. When Ugochi objects to the idea of excluding women, he suggests that women could be involved as cheerleaders. There is a heated argument that ends in Mr. Mikey threatening to stop sponsoring the event. Ugochi realizes that she stands to lose 80% of her funding if Spikey backs out of their sponsorship deal. With only 20% of her previous funding, she will have to scale down operations significantly and greatly restrict the number of participants, which would be devastating to thousands of youth, their families, and their volunteer coaches. Mr. Mikey asks Ugochi to think about it and come back in a week for a meeting at a venue of her choice. If you were Ugochi, what would you do?

Step 1: Determine the facts in the situation – obtain all of the unbiased facts possible. Clearly state the ethical issue.

• There is a high prevalence of street crime not currently addressed.
• SYE-T is a soccer-based program for vulnerable youth in U.S. urban centers, founded by Ugochi.
• Spikey, a shoe manufacturer, has funded 80% of the program since 2019.
• The program shifted from personal development to competitive soccer due to Spikey’s focus, making it more sport-focused.

Part 1:

• Spikey’s contractors in Cambodia employ children under age 12. two contractors demand 60-hour workweeks without education.
• They claim compliance with Cambodian law, offering continued support to SYE-T.
• Have to decide between continuing with Spikey’s funding, which might compromise SYE-T’s ethical mission.

Part 2:

• Mr. Mikey evades child labor questions and suggests refocusing SYE-T away from vulnerable youth.
• Spikey wants to exclude women and youth under 18 (only men can compete).
• Women are suggested as cheerleaders.
• Mr. Mikey threatens to pull Spikey’s sponsorship if Ugochi doesn’t agree, risking 80% of SYE-T’s budget.

Ethical issue: reconciling SYE-T’s dependence on Spikey’s funding with Spikey’s association with unethical labor practices abroad and a proposed shift in the competition’s direction that contradicts SYE-T’s inclusive mission.

Step 2: Define the Stakeholders – those with a vested interest in the outcome.

Part 1:

• Ugochi
• Vulnerable youth in the US
• Spikey
• Children working for Spikey’s contractors
• Non-profits and small community partners

Part 2:

• Ugochi
• Vulnerable youth (especially women)
• Spikey (Mr. Mikey)
• SYE-T volunteers

Step 3: Assess the motivations of the Stakeholders

Part 1:

• Ugochi: desire to empower vulnerable youth and maintain the integrity of SYE-T’s mission while grappling with ethical concerns about Spikey’s practices.
• Vulnerable youth in the US: seek opportunities for personal development, leadership skills, and escape from cycles of poverty through SYE-T.
• Spikey: opportunity to enhance their brand image and increase sales while downplaying negative attention from child labor allegations.
• Children working for Spikey’s contractors:  forced to work under harsh conditions to support their families, with little to no opportunity for education or a better future.
• Non-profits and small community partners: concerned with promoting social justice and supporting vulnerable youth but may question the ethical implications of working with Spikey.

Part 2:

• Ugochi: wants to protect SYE-T’s inclusive mission and resist pressure from Spikey, despite the risk of losing vital funding.
• Vulnerable youth (especially women): desire equal access to SYE-T’s opportunities for personal growth, leadership, and career advancement.
• Spikey (Mr. Mikey): focused on shifting SYE-T’s focus to protect their brand reputation and control its direction for financial and Public Relations gains.
• SYE-T volunteers: dedicated to supporting the program’s mission and empowering youth but rely on the program’s continuation to stay involved.

Step 4: Formulate at least three alternative solutions – based on information available, using basic ethical core values as guide Approaches [1/2/3: repeat for every action] • Potential solution • Ethical Principle or code • Pros • Cons

Part 1:

Approach 1: Ugochi cuts ties with Spikey due to their association with child labor.

Ethical Principle: Respect for human rights and social justice.

Pros: Maintains the ethical integrity of SYE-T and avoids complicity in child labor; aligns with the program’s core values of youth empowerment.

Cons: Loss of 80% of funding, leading to a significant reduction in program size, impacting thousands of vulnerable youth.

Approach 2: Ugochi demands Spikey take action to address child labor violations and continues the partnership only if they comply.

Ethical Principle: Accountability and corporate responsibility.

Pros: Pressures Spikey to reform their practices, maintaining SYE-T’s funding while addressing ethical concerns.

Cons: Spikey may refuse, potentially leading to the loss of funding; even with compliance, trust in Spikey may be hard to rebuild.

Approach 3: Ugochi continues accepting Spikey’s funding but publicly raises awareness of the child labor issue.

Ethical Principle: Transparency and advocacy for social change.

Pros: Retains funding for SYE-T while promoting broader awareness of unethical labor practices.

Cons: Risk of backlash from Spikey and other stakeholders; may appear hypocritical to critics if no direct action is taken.

 

Part 2:

Approach 1: Ugochi rejects Spikey’s proposed changes and seeks alternative funding sources.

Ethical Principle: Commitment to inclusivity and gender equality.

Pros: Preserves the original mission of SYE-T, especially its focus on vulnerable youth and gender inclusion.

Cons: Finding new sponsors in time may be difficult, and losing 80% of funding would severely restrict the program’s reach.

 

Approach 2: Ugochi negotiates with Spikey to maintain women’s participation while compromising on other less critical changes. (Pick battles)

Ethical Principle: Fairness and compromise.

Pros: Protects key values like gender equality while keeping most of the funding intact, ensuring the program continues.

Cons: Some aspects of the program (such as focusing on vulnerable youth) may be sacrificed, weakening SYE-T’s original mission.

 

Approach 3: Ugochi agrees to Spikey’s terms temporarily while secretly preparing a transition plan to regain control and diversify funding.

Ethical Principle: Pragmatism and long-term planning for ethical sustainability.

Pros: Buys time to secure alternative funding without abrupt disruptions to the program, ensuring youth continue to benefit in the short term.

Cons: Compromises the program’s inclusivity temporarily and may erode Ugochi’s credibility with stakeholders aligned with SYE-T’s mission

Step 5: Seek additional assistance

• Peers & advisors: Ugochi should consult trusted colleagues and advisors for insights on balancing ethical concerns with funding needs.
• Research similar cases: Ugochi can review how other non-profits have handled similar conflicts with corporate sponsors.
• Personal reflection: Ugochi should reflect on SYE-T’s core values and whether partnering with Spikey aligns with her vision of youth empowerment.

 

Step 6: Select the best course of action
Part 1: The best option is the second approach. Ugochi should demand Spikey address the child labor issues while continuing the partnership. This solution balances both funding needs and ethical responsibility by holding Spikey accountable and pushing for reforms. If Spikey refuses, Ugochi could explore other funding sources but maintain transparency about the issue. This approach also allows SYE-T to remain operational, supporting vulnerable youth in the U.S. while keeping faithful to core principles.

Part 2: The best option is the third approach. Ugochi should agree to Spikey’s terms for the time being but begin preparation for a long-term transition plan to regain control and diversify funding. This will ensure that SYE-T can continue supporting vulnerable youth while slowly reducing reliance on Spikey. It allows time to secure other funds and partners while maintaining operations.

Step 7: Sequence of actions

Part 1:

1. Plan a meeting with Spikey to demand child labor practices reforms
2. Lay out key actions and timelines for Spikey to comply with ethical labor practices.
3. Develop a communication strategy to keep SYE-T stakeholders informed about the issue and Spikey’s response.
4. Start developing a plan to find alternative funding sources while maintaining transparency with the public

Part 2:

1. Agree to Spikey’s terms for a limited period to keep SYE-T operational.
2. Begin a search for new sponsors who align with SYE-T’s values, focusing on local businesses, foundations, and other non-profits.
3. Gradually shift focus back to the original mission, including women and youth, as funding diversifies.
4. Develop a public communication plan highlighting the future direction of SYE-T to maintain stakeholder confidence and attract new supporters.