Indeed, it breeds apathy. After a while you literally give up on making improvements because nobody else cares to do so, and you just hit massive walls every time you attempt to make change. The best thing you can do is find a different place to work, or start your own business.
Press X to doubt. Everything going fine at my company, no politics and profits are good. Maybe some rogue wave will come some day but that also happens at companies with lots of performance reviews no?