The Peril of Ethical Fading

Earlier this month, General Motors dismissed 15 employees following the completion of an internal investigation into GM’s failure to respond appropriately to reports of ignition switch defects. The report found GM was “incompetent and negligent” in failing to prevent the deaths that were caused by this defect.

GM declined to identify the employees who were dismissed. According to various reports on the internet, the majority of those dismissed were executive and middle management employees.

The internal investigation report apparently exonerated GM’s top management and board of directors. It concluded that GM did not willfully cover up its knowledge of the defect. Yet, at least some employees within the company were aware of this defect since 2004.

This provides a classic example of what has been deemed “ethical fading” – the erosion of ethical standards when employees become accustomed to behavior they likely would condemn if they consciously thought about it. When ethical fading occurs, individuals fail to recognize the ethical implications of their decisions.

This often occurs when the culture of an organization either directly or tacitly condones unethical behavior. Taking risks and cutting corners is rewarded by the company whereas reporting concerns is widely understood to be a good way to get fired.

Interested in learning more about ethical fading?

Click here to watch an interesting video. (This link will take you to a YouTube video that discusses ethical fading.)

By:  Thea Dunmire, JD, CIH, CSP
ENLAR Compliance Services, Inc

Related Resources:

The term “ethical fading” was created by Ann Tenbrunsel and David Messick in their article Ethical Fading:  The Role of Self-Deception in Unethical Behavior which was published in Social Justice Research in June 2004. (Click here to read this article.)