I agree. I've been working in Silicon Valley for a few years now, and it honestly feels like a page out of Animal Farm. The Orwellian mismatch between rhetoric and action feels like cult-like propaganda to me.
I don't know how veterans of the Valley can keep this up.
They fire the employee.
I'm not a manager, but I know someone at a startup who, completely within their rights, complained to state regulators when the company's payroll became erratic. Next thing you know, she was out the door.
(In the state in question, filing a formal complaint requires the complainant to give their real name and address, etc... and the employer gets a copy of the form with the letter of inquiry from the state.)