Specifically because it communicates belonging ("fit") and facilitates status plays.

Worst case it's meaningless filler - the equivalent of looking busy while doing nothing. Best case someone important may be impressed.

It's important to remember the downside is on not bullshitting and sticking to facts and metrics. In many orgs, neither will win friends and influence people.

Because the organization doesn't live or die (immediately) based on interactions with the real world. It can continue on autopilot for a while while the leaders/staff play their game of pretend.

Such things don't continue forever, though. Such organizations are eroding their future.