There's no need to rope conspiracies into this. The structure of incentives in corporate environments have people in the company not looking for something they don't want to find. Managers would rather not know about violations and be able to tell their boss that their team are pros who got the job done fast, than investigate their reports for violations and quite possibly find a big mess that needs to be cleaned up.

Point is, shit that shouldn't happen routinely does happen anyway. "That wouldn't happen because it would be illegal" is generally bullshit.