Oh I could write a book on this topic!
I work in an office with only two other people, while our boss is in another location. One co-worker shows up to work at least half an hour late every single day. Both of them blatantly ignore policy and procedure whenever it's something they don't want to do. And the boss basically encourages this behavior by never punishing them and doing things that even he knows is wrong. And we work in a quasi-legal industry (my boss is an attorney) so this is actually people's lives and livelihoods that are being messed with.