The worst example of this I experienced was a purchaser buying parts that were not to the spec of the design and caused problems in the field. No one in engineering or support was told of this and it was discovered by our support team in the field. Then engineering had to step in and and say no, only to have to economically justify the increase in cost to meet the spec.
We hurt our customers, our product and lost future revenue due to a tarnished reputation. It is difficult to be proud of what you do when something like this happens. It is also unnerving to know that this could even happen in the first place.
All of this is due to short sited economics. Negative externalities be damned. Could it be better if we could measure negative externalities in dollars and cents? How does one economically measure trust?