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Ethical Fading is a phenomenon that occurs in an organization's culture, allowing individuals to commit unethical acts while falsely believing they have not compromised any principles. This usually happens when small, dubious actions are taken to achieve targets, and these actions are not checked or corrected. Over time, these actions send a message to employees that achieving goals is more important than maintaining ethical standards. As this behavior continues, Ethical Fading grows, potentially leading to significant long-term costs for the organization and its customers, far outweighing any short-term benefits.
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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.
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