He is trying to improve things by telling his employees to get back to work and stop pearl clutching.
> You gain insights into the moral base upon which Paul makes his own decisions. All of this is couched in a form which makes Paul and his people admirable. I am their advocate. But don't lose sight of the fact that House Atreides acts with the same arrogance toward "common folk" as do their enemies I am showing you the superhero syndrome and your own participation in it. The arrogant are, in part, created by the meek. [0]
CEOs, I think, get away with stuff like this because the "common folk" accept their place in the hierarchy and don't question them. So without honest feedback the people at the top of the hierarchy lose touch with reality.
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This CEO should look in the mirror and wonder what he could do to improve things.