This has some well-known negative side-effects. I've occasionally wondered what it would be like to work in an environment where internal transparency at least was the rule rather than the exception.
I suspect it would only work for organizations that were less than the non-exclusive Dunbar number in size.
In the organisation I work in we deliberately have an explicit transparency rule. We are quite small at this point, but it is very nice to be able to have open discussions around just about anything.
Richardo Semler's company Semco has been working for years on very open internal information flows with good results, in larger organisations than what we have. I recommend reading his book Maverick.
I suspect it would only work for organizations that were less than the non-exclusive Dunbar number in size.