It can happen and has happened many times in the UK and the reports of the legal cases that ensued were legion in the newspapers. Most of it took place in the 80s and 90s, the Asian firms have mostly wised up now, but a friend who works for a Japanese company in Switzerland says that there are still major cultuural issues with underqualified people being shipped out from Japan above the heads of better qualified Europeans who are expected to defer to them.
I saw this time and again in U.S. private enterprise, even where no cultural difference per se existed - or if there was a cultural difference it would be better described as class-ism. Yes, as in the military example above the post I'm quoting, I also learned to say "sir" but there are ways of enunciating "sir" which both show proper respect for the person's superior social position, while at the same time conveying how one feels about the person to whom the term is applied (One need not use the 19th Century term "sirrah") tho of course revealing such a sentiment with tone of voice even properly modulated is quite risky. Pardon this digression, yeah all too often the "chiefs" / middle managers in U.S. corporations had either their not-so-bright ideas and/or were compelled to bring them to the subordinate workers. I recall many times front line supervisors who in our department team meetings said, listen guys, I too know this is stupid but it's what the head honchos want, and they are our customer, the ones paying us. What a relief for to work finally in public higher ed, where VP's and top administrators not only welcomed staff feedback but solicited it; e.g. the dean who remarked, "you guys do the nuts-and-bolts, we just do administrative oversight, and we NEED you to tell us candidly if something is a bonehead idea." (I am NOT making this up, this really happened) and thank god, higher ed at least was often light-years ahead of private industry about matters of respect, collegiality, making practical and intelligent decisions not based on inflated ego. (No doubt there are stories that refute this, going the other way.)
Sorry for the Wall of Text, but the point is NCSoft upper management executives are RESPONSIBLE for knowing HOW to interact with social subordinates, i.e. employees. This is THEIR failure, NOT the employees/contractors. Being in charge means being an effective leader - not a petty tyrant. Being a petty tyrant is easy! Most kids have learned that by grade school if not as 2 year old toddlers!!!