If Sharon Shoesmith had had any sense of honour or decency, she would have resigned her post at the time, as did the leader of the council.
One of the reasons that people in high positions in the public and private services receive such high salaries is because they take on a great deal of responsibility. And yes, that means that's where the buck stops when things go wrong as has been said in this thread.
She's strutting about now as if she has been vindicated when all she has gained is the possibility of a payoff for unfair dismissal.