> I mean you simply don't believe it until you witness it. Its just moral/leadership decay.

I think there's also a big part of the line that Jennifer Lawrence says in the satiric comedy "Don't look up":

"They are not even smart enough to be as evil as you're giving them credit for."

Just as the person who picks 123456 as a password doesn't see where the problem is, I think there are really quite a lot of people dumb enough all along the decision chain to think that firing the person who reported the problem did actually fix the problem.

They are really that dumb.