Because if you are concerned about offending management, then the existing relationship is not about candor.
Also, your idea about failure is probably not their idea about failure.
Because if it was, management would already have recognized the failure you see.
Finally, it may be that your definition of failure is not applicable to the business...this is pretty common.
So the best thing to do for yourself is to figure out why management doesn't see things the way you do (and don't use a cop out like "they're stupid/greedy/incompetent").
Good luck.