Exam questions on business ethics, executive pay and business performance tend to revolve around two things: what is the corporate culture and who is in charge? Culture was the first killer concept we covered (see BUSINESS REVIEW, Vol. 19, No. 4, pp. 19–21). Business governance is about who is in charge and how well they deliver on their responsibilities.
In September 2014 a bombshell hit the stock market when Tesco announced that its half-year profit had been overstated by £250 million. As the profit had totalled £1,100 million, this was an admission that the half-year figures had been overstated by more than 25%. Following this revelation by an internal whistleblower, four senior Tesco managers were suspended. The recently appointed boss Dave Lewis told the Guardian:
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