It’s not up to you to decide if what the management did is right or wrong, it’s up to the shareholders. They own the company and they appoint the management. If they make bad decisions it’s up to them to replace them.
They do it indirectly via the board of directors, they are the representatives of the shareholders (akin to a representative democracy). It is a common scenario for the shareholders to vote in a new board to replace the existing management.
In the past 40 years several FTSE 250 companies have collapsed, gone bancrupt or suffered some other disaster.
I can't name any example where shareholders replaced upper management before it was too late. Can you?