It doesn't take most people too long to realise you can be loyal without being honest. Yet history is rife with examples of people who were loyal when, honestly, they knew better. The most sensational example of this is, of course, the Nazi's, but the concept hits a little closer to home than that.
Loyalty will always be valued over honesty by those in a position of authority (be it political, religious, secular businesses or social groups) simply because no one wants to be told they're wrong. We instinctively and inherently resent honest notions that force us to justify ourselves. And so, our natural sense of values are topsy-turvy. Someone that's loyal is seen as more valuable, more of a team player, more of an asset. While someone that's honest is difficult, a trouble-maker. Reality, of course, is just the opposite. The seemingly loyal devotee isn't at all loyal. They're dishonest. While the honest devotee is loyal to principle before position. If you find yourself in a position where you are challenged to be either loyal or honest, choose the tougher road less travelled and be honest...
Source - http://onyxstone.blogspot.in/2007/08/loyalty-or-honesty.html?m=1