An absent CEO who doesn't deliver on his promises to employees. Upper levels of management have too much control and no respect for some directors (who are pretty ineffective but remain in employed). A lot of unhappy employees creates a negative atmosphere and no incentives to work hard. A history of botched handling of annual bonuses and performance review leads to lack of faith in employees that efforts are rewarded so nobody tries too hard, "what's the point" attitude is pervasive.