An organization can prevent Ethical Fading and maintain its ethical principles by fostering a culture of ethics and integrity. This can be achieved by setting clear ethical standards and ensuring that these are communicated effectively to all employees. Regular training on ethical conduct and decision-making should be provided. Leaders should model ethical behavior, as employees often take cues from them. It's also important to have a system in place for reporting unethical behavior without fear of retaliation. Lastly, any unethical behavior should be dealt with swiftly and decisively to send a clear message that it will not be tolerated.
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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.