Tell the Truth

Telling the truth immediately when we make a mistake in decision making, submission of the document reports is the right thing to do. So that the possible worst scenario or catastrophic event that may occur which may cause waste of more time, money, energy which that waste can be used on improving, innovation and productivity. 

Telling the truth about someone's performance. 

Traditional corporation performance reviews are driven largely by fear of litigation. The theory is that if you want to get rid of someone, you need a paper trail documenting a history of poor achievement. At many companies, low performers were placed on "Performance Improvement Plans." I detest PIPs. I think they're fundamentally dishonest. Let's just tell the truth technology is changing either you learn it and adapt to the new system which is more productive and prove your worth or give him a great severance package-which when he signs the documents, will dramatically reduce (if not eliminate) the chance of a lawsuit."  -Off the Cuff issue 2017

Because of they can do something about the employee who is not committed to the best interest of the company the company is afraid of removing him?

There is a solution for this problem the employee even if he a managerial position even if he is the company for a long time. But the situation in the company affects the profitability at some point of view there is a reason on demoting him. Changing the management type to be much more effective.