Results of consequence-free environments

What happens when you set up a top-down culture of absolutely no consequences for the things you do wrong?

Amongst other things, if this ABC News report proves accurate, apparently drugging and gang rape, followed by willful destruction of evidence, borderline kidnapping, and legal protection of in-house perps in Iraq contractor KBR.

The extensive use of contractors to avoid legal accountability for actions taken in Iraq was disturbing enough without the apparent extension of this to a complete lack of liability for activities that are criminal in any country for the contractor's employees. You can't contract out of the law, so this situation has to be invalid.