Even those who have never interacted with X will hear through the grapevine that X is abusive, unscrupulous, dishonest, or whatever the problem might be. If such behavior goes unaddressedor even worse, if it is rewarded with a promotion for delivering strong business resultspeople across the company will conclude that the values and the inspirational posters are bullshit. Everyone will know that the real, unspoken culture is Do whatever you want, as long as you make your numbers.
Amp It Up by Frank Slootman