[badminton1]

Because companies grow not only horizontally but vertically.

Vertical structures create encapsulation of individuals and that leaves room to exploit information asymmetries.

e.g: stealing credit, favoritism, etc... rigging the game to their favor.

At the late stages of this game, people like this can get away with anything: hiring and promoting their friends, openly insulting people, just openly lie knowing nobody can do anything about it, etc.