Case Study:

Jennifer learned that their line manager Alex was rumoured to be a very close friend with the purchasing manager of their biggest customer, SANDERS, and that he had negotiated some private commission for himself in return for cutting prices to SANDERS. Jennifer also spoke to her friend Lucy who worked in a different department. Lucy told her that a supervisor had recently been fired for sending an e-mail critical of management policy. She also learned that, before she joined, seven members of the finance team had been made redundant and had been replaced with casual workers.

Question:

What does the case tell you about corporate governance? What makes the corporate governance in the case a failure?