When such behavior becomes part of an organization's culture, it gives rise to collective blindness to unethical ways, regressive thinking that ignores the future demands of your business and a propensity to ignore truth especially if it requires taking a hard stance.
Without the environment that encourages fresh perspectives, constructive conflict with a desire to learn new information, and a clear process for making decisions, it's easy to succumb to groupthink where herd mentality drives decisions instead of utilizing the collective power of group intelligence.