They may say they don't want to be lied to, but the incentives they put in place often inevitably result in them being surrounded by lying yes-men. We've all worked for someone where we were warned to never give them bad news, or you're done for. So everyone just lies to them and tells them everything is on track. The Emperor's New Clothes[1].

1: https://en.wikipedia.org/wiki/The_Emperor%27s_New_Clothes