Case Study 4: Cheating and NASCAR: Who’s at the Wheel?

This paper embarks on a road trip to NASCAR, the National Association for Stock Car Auto Racing, to take a close look at why cheating occurs within that organization. Two arguments drive the article, namely that NASCAR (1) may not be able to stop cheating particularly within the current context, and (2) might not want or be motivated to stop cheating. Obstacles complicating NASCAR''s efforts to stop cheating include the long-standing culture of unethical behavior within stock car racing, and the inconsistent imposition of punishments by NASCAR which drivers and race teams perceive as favoritism and unfair treatment. Yellow flags that raise caution include pressure from unwavering fans, and the friction between innovation and maintaining parity among teams. Proposed solutions include changing the culture within the NASCAR community, as well as developing ethical role models, both of which require major action by NASCAR''s top managers to signal the importance of ethical behavior. Other key stakeholders such as sponsors and fans must create incentives and rewards for ethical behavior, and consider reducing or ending support for drivers and teams that engage in unethical conduct. Our analysis and recommendations have broad applications because NASCAR is an archetype of a large organization attempting to reduce cheating and unethical behavior. As you think of NASCAR, the first thing comes to mind is cars racing round a track at a fast rate of speed and fans filled with excitement. Headquarters in Dayton Beach Florida, this event was founded in 1948 by Bill France, who had a huge vision of “luring fans and competitors to exhibit and promote better standardized racing on tracks. With this vision a professional sport with a huge avid fan base was born from a project many presumed to be a hobby.” It is world’s second most popular professional sport events with over 75M fans. The revenue from this sport brings in billions of dollars through the sales of its licensed products purchased by fans. “NASCAR sanctions and oversees about 1,500 races in a year in U.S, Mexico and Canada. It also directs and manages all aspects of public stock car racing which includes premier racing series, Busch, Craftsman’s track, and eight regional series. They oversee the number of races in a series, rules and regulations to be adhered to by the drivers and race teams, the tracks where the race event will be conducted and to what extent penalties are assessed when cheating happens. The marketing power enjoyed by NASCAR make it jurisdiction over other organization in the stock cars racing and tries to use this power prudently. Their primary focus in marketing is to promote the sport with due consideration of track owners and teams, to ensure financial security for all participants” Motivational factors that promote cheating in NASCAR – It is no secret to that NASCAR plays a significant role in the local communities and businesses/fans look forward to the event coming to its town. The revenue earned from the event generated brings in millions of dollars during the four day event. “The NASCAR brand name makes a good impact for local charities. At the same venue, the night before the big event a fund raiser for local children’s charities raised $ 10,000 in auctioneering only.” Even with the deep rooted values of NASCAR, a negative side exists and cheating has become a thorn in the flesh of authorities. There are ongoing efforts “to find a winning car, by every team in the garages and pits. The inspections pre and post race always take place at the garages where more attention and analysis is done on engineering and cheating. Innovations in stock cars have been noticed in both the garages and the tracks alike. Though the technology has profoundly advanced, the concept is the same.” Even with the rigorous process of technological inspection constantly throughout the event day and during the races. Whereas, the vehicles are checked before the first practice, prior to qualifying, after qualifying if they win the pole, before the race and after the race cheating possibly still exists. The winner and other top five cars contenders, plus one or two randomly selected cars are all evaluated during the post race inspection process to determine if anything was compromised. “NASCAR uses templates and measuring techniques to detect these modern day cheats. NASCAR inspectors confirm all the measurements including frame of the car, test car engine, mark parts in order to ensure a level playing field for all the participants at each race. Cheating is not limited to one or two teams trying to outsmart the system, but all of them have developed this desire to find a way around the system”. It is believed that pressure to meet organizational objectives plays a vital role in motivating employees to circumvent rules and regulations to meet goals.” Employees of different organization are usually trained on illegal behaviors as part of their normal duties and authority. This tends to bend the imagination of the NASCAR drivers in the wrong path.” Organizational culture at NASCAR that contribute to unethical behavior - NASCAR absolute control over all stock races is subject to abuse, due to autonomy they enjoy by exerting a unprecedented decision, levies penalties and sometimes unilaterally revoke penalties already levied on a member. This culture of impunity by the NASCAR executives deems all the efforts being put to reduce this ancient habit by the participants The company’s top directors and owners can promote ethical practices by example. In shedding the investment they have in the international speedway corporations, they will go a long way in proving that all racetrack owners have an equal opportunity to host the Nextel cup races. As at now the France family has an undue advantage over other track owners, due the synergistic relationship between NASCAR, and ISC which owns and manages 13 finest auto racing tracks used in Nextel cup races. Cross ownership between Nascar and ISC promotes an atmosphere of unscrupulous and partisan competition, which doesn’t auger closely with its corporate strategy of fair play. Rules can’t break cheating - Some participants strictly comply with the rules and regulations of NASCAR but take advantage of some, which are not prohibited. “Many efforts by NASCAR to enforce strict compliance to their fuzzy rules and regulation have often failed substantially. The drivers and mechanics have always looked for ways to increase the speed and efficiency of their cars without being caught. This culture has been in existence for a long period of time and has not shown any sign of ending soon.” “The car owners, drivers, crew chiefs and teams collectively known as the garage people came up with shared benchmarks that relax the interpretation of rules. There exist an unwritten standards of behavior developed and enforced by this group, where a candid arrangement exists that no member of the group should interfere with rules commonly known as the big three, they include tires, fuel, or engine displacement. The members of the garage community agree that anything outside the big three as challengeable. The benchmark created by this group goes against every bit of NASCAR rules and this is enough justification why NASCAR has a long way to go as concerns eradicating cheating in the stock car races.” Inconsistency decision and procedural justice in races is one reason why the NASCAR rules can’t be used to determine the real winner in a race. By lacking standards for assessing, any effort on cheating by any participants greatly diminishes the moral of the sport. Procedural justice legal process demands that all violations be penalized in the same manner without considering the intentions of the participants .NASCAR is not known to adhere to these principles in making their judgments. Preferential treatment has also been reported in assigning these penalties Methods to address cheating problems at NASCAR - Designing and enforcing an organizational code of conduct, based on a corporate model that can infuse an ethical thinking and behavior. Car owners and race team’s opinion should be taken into consideration while developing a code of conduct. The training of individuals as a way to instill the spirit and the code of conduct includes ensuring that ethical leadership exists. This encourages NASCAR original owners and senior managers to develop just manner leadership style. It’s always said that leadership starts from the top, NASCAR is not excluded, and the owners must confirm their behavior present noble virtues of honesty, integrity, self respect and integrity.” “Rules are always the first step towards solving a problem. Inconsistency and equity in this sport will be addressed by changing of rules. By simplifying the rules, innovation will be greatly enhanced and structural changes to procedural fairness which has always been a well kept secret, Action towards the creation of an ethical community by the NASCAR executives is a step in the right direction in eradicating cheating and unethical behaviors. Formulating a code of conduct, programs of consistently employed rules and programmatic fair play, reinvigorated approach to creativeness, prospects of significant increase in devoted fan base and sponsors integration in assenting to this adjustments “

References
Huneycutt, J. (2009, February). Bending The Rules - Cheating Today Is Becoming Harder To Do. Retrieved August 24, 2012, from Stock Car Racing: http://www.stockcarracing.com/techarticles/general/scrp_0607_auto_race_cheating/viewall.html
NASCAR History. (n.d.). Retrieved August 24, 2012, from NASCAR: http://www.nascar.com/