Covering up your mistake at work might get you away initially, but if your cover is blown, you will not only show that you are incompetent at work, but also a dishonest chap.
Covering up for someone at work might gain you the gratitude of the person but when things get serious, you will have to bear a share of consequences.
It is an unhealthy culture for a company to try to cover up their oversight, instead of acknowledging it and rectifying it. This might lead to potentially bigger problems that would take much more effort to resolve.
But the tendency to cover up is natural.
As an individual, be forefront and admit your mistakes. Everyone make mistakes at work time to time. The trick is to acknowledge your mistake sincerely, and give the assurance that it will not happen again, while keeping that assurance.
As a company, acknowledge that employees do want to look good and might not surface errors. Thus a company should cultivate an environment where its ok to make mistakes such that employees can learn from each other's mistakes and truly grow.
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