CEOs of these large companies really need to step up and take control of these groups who develop an unreasonable amount of risk aversion due to a long history of dealing with issues that have a great deal of gravity for them even though they're fairly minor for the organization overall.
There are some companies that get this right, but a general shift hasn't happened yet and there's probably quite a few CEOs that can't justify the political expense and fallout without the backing of a major culture shift in businesses at large. It might be years or even decades before that happens and it's going to be sad to see small agile companies fall to it in the meantime.
As to the actual purpose, I think it's a similar deal to feudalism. Whatever waffle kings and nobles said, looking back it was pretty clearly about self-aggrandizement, filling one's pockets, taking revenge upon one's enemies, et cetera, ad nauseam.
I guess this shouldn't be surprising; primates gonna prime.