The British Home Store (BHS) is found to not follow any of these tenets of corporate governance. This 88 years old company has been considered as a paradigm example of how a company fails without proper corporate governance. British Home Store failure is a well-known scandal that has caused the economy and the people massive ramification. It is concluded that the incompetent corporate governance and lack of ethics have caused the company to be a failure.
The reasons for failure of the company are explored in the following.
The tenets of profit making and capitalism are a successful endeavour. Focusing on only the management efforts leads to a number of issues. Sir Philip extracts millions of pounds from BHS and pays little in taxes. He weakens the pension fund to the point to collapse of the company and the pension fund scheme.
The BHS pension fund is in surplus and these are unsustainable deficit during the course of his tenure. Employers do not meet the obligations of making payment but deferred pay. The pension fund becomes a massive point of failure of the company. There are no transparency and ethical practices that followed leading to the failure of the company and its pension fund future.