Just as we have limits on our cognitive abilities (bounded rationality), we have psychological limits that prevent us from seeing the ethical dimensions of our choices.
We hold people less accountable for unethical actions when they are carried out through third parties or "outsourced." How to Close the Gap
This book, by Max H. Bazerman and Ann E. Tenbrunsel , explores the gap between how we think we will behave in ethical situations and how we actually behave when the pressure is on. Blind Spots: Why We Fail to Do What's Right and...
This occurs when the ethical aspects of a decision disappear from view, often because they are masked by "business" goals, "legal" requirements, or "efficiency" metrics.
Organizations should audit their incentive structures. If you reward only the "bottom line," you are architecting an environment where ethical blind spots flourish. Just as we have limits on our cognitive
We have a tendency to overlook the unethical behaviour of others when it is in our interest to remain ignorant (e.g., a manager ignoring a top salesperson's shady tactics).
Instead of assuming we are perfectly ethical, we should acknowledge our biases so we can actively guard against them. Tenbrunsel , explores the gap between how we
Before a decision, our "should" self (rational and ethical) is in charge. However, at the moment of the decision, the "want" self (impulsive and self-interested) takes over. Afterwards, we use "ethical fading" to justify our actions and maintain our positive self-image.