What happens when powerful people stop following the rules

For years, Steinhoff looked exactly like the kind of company investors trust.
It had international operations, respected executives, sophisticated reporting
structures, external auditors, market credibility, and the appearance of strong
leadership. It was seen as one of South Africa’s great corporate success
stories.

Which is precisely why what happened next was so disturbing.

When accounting irregularities became public in December 2017, Steinhoff’s share price dropped by more than 95%. Investors, including pension funds, suffered heavy losses, and South Africa’s corporate sector was forced to confront a deeply uncomfortable reality: fraud can live for years inside organisations that look disciplined, successful, and well governed. (SciELO)

The shock was not simply that fraud had occurred. The shock was that it had happened inside a company that looked so controlled.

That is the part many boards and executive teams still struggle to face.

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