Bad Leadership and the Erosion of Corporate Governance

Abstract

Despite extensive governance reforms and leadership training initiatives, bad leadership continues to undermine corporate accountability and institutional trust. This article critically examines how bad leadership erodes corporate governance structures by weakening board oversight and accountability, as well as by normalizing governance failure. Drawing on illustrative case studies and interdisciplinary literature, the analysis develops a typology of consequences, while also exploring the symbolic and political construction of governance failure. Special attention is paid to stakeholder trust, reputational collapse, and the limitations of compliance-based ethics. The article concludes with recommendations for future research and the importance of ethical leadership as a cornerstone for institutional legitimacy.