Question
Ethical fading is a common issue in many organizations. One example is the Wells Fargo scandal in 2016, where employees created millions of unauthorized bank accounts to meet sales targets. This was a result of a high-pressure sales culture that prioritized goals over ethics. The implications were severe, including a damaged reputation, loss of customer trust, and hefty fines. Another example is the Volkswagen emissions scandal, where the company installed software in vehicles to cheat emissions tests. This unethical behavior led to significant financial and reputational damage. These examples highlight the long-term costs of ethical fading, which can far outweigh any short-term benefits.
This question was asked on:
Ethical Fading happens when an organization's culture allows people to commit unethical acts while falsely believing that they have not compromised any principles. Small, dubious actions to achieve targets, when unchecked, send a message to employees that goals matter more than ethics. Ethical fading grows with every such act. Over the long run, ethical fading will create a far higher cost to the organization and its customers than the seeming short-term benefit it offers.
Receive new free presentations every Monday to your inbox.
Full content, complete versions — No credit card required.
