In 1982 Posner and Schmidt surveyed the values of 1400 managers. The survey revealed that honesty was one of the qualities that these managers admired most in themselves. An earlier study by Brennan and Molander indicated that managers believed that honesty in communication was their greatest ethical challenge. If honesty is a prevalent value among managers then why is honesty in communication their greatest ethical challenge? This paper presents an insight into the answer to this question and into the beliefs and norms of behavior that foster either a candid corporate culture or a culture that lacks candor.