Because they're so used to hierarchy based on oppression, pedigree and greed rather than contextual hierarchy based on actual merit and expertise.
Recently experienced this myself. Management wants us to stop splitting orders to ship things from multiple warehouses because it is more expensive to ship. Sure I get that shipping $125 of product from the east coast to Montana might cost us, but shipping $500 of product from California to Michigan is still profit.
Not to mention that this change is also causing some people to just cancel their entire order.
Management is making decisions based on metrics that ignore the customer and I guarantee are going to really hurt overall profit margins long term.