Value OF SACKINGS
Mr. Lai claimed that a board’s decision to fire three senior executives at once indicated that the situation was “irreparably egregious” and that keeping the pair would have been “untenable for the business.”  ,
Due to the seriousness of the consequences, particularly when they become publicly known, such a decision must be carefully thought out and implemented by the committee, according to Mr. Lai, who added that the action may result in customers and investors losing trust in the business.  ,
On the other hand, Prof. Loh of NUS described the activity as “decisive corporate governance action against administration lapses” that may help foster board confidence as it establishes that the board has control over its management.
” This is a case where corporate governance trumps management”, he said.  ,
SingPost’s earlier setbacks may even explain its choice, Prof Loh said. SingPost has recently been fined for company lapses and received a harsh reminder in 2019 after a cabbie with special needs dumped sealed mail.  ,
According to Prof Loh,” SingPost has experienced a number of instances of company lapses, or even accidental foster behavior in recent years, so I think there’s a need to give a message that trust is a very important element for this business.”  ,
In 2019, SingPost was fined S$ 100, 000 ( US$ 74, 000 ) for , failing to meet service standards.
The post service company made the mistake in May 2017, when the company failed to meet the minimum standard for the next working day’s supply of simple native words within the central business district.
SingPost also  failed in its efforts to deliver basic words and registered email over the course of several months in that year.
” The critical issue is ( the organisation’s ) … nature where service culture, trust in delivery is fundamental to the business”, Prof Loh added.  ,
NTU’s Assoc Prof Law said SingPost’s event highlighted the need for businesses to have “formal, strong internal approach” for reporting.
Companies should evaluate their internal control methods and reporting programs. He continued,” If companies don’t have one, they might want to consider implementing a robust and formal system for handling internal concerns and suggestions.”  ,