The thought that if the head man knew what was really going on, there'd be changes has probably existed forever. Sooner or later most of us realize that the head man knows whats going on and, for his own reasons, doesn't act. Or doesn't act until their own well being is threatened.
What I was about to say.
"Small business with 5 in the shop."
If the owner can't watch 5 people, he may be too stupid to enlighten. Then again, maybe he doesn't care.
As a friend once told me when I asked if his manager was stealing from him- "Sure, he's stealing, but he doesn't steal more than he's worth."
If the business is rocking along, and the owner is happy, he may be content with the status quo. Rocking the boat may not ingratiate you to him.
Keep yourself covered and do your job.
from my past experiance in cases just like yours. I have found that although against my own principles,the best policy is to just do YOUR job and keep quiet. I am a slow learner but this is a matter I have considerable experiance with. Management LOVES those that "go with the flow".