A study led by researchers from Aston University and the University of East Anglia has uncovered how organisations may unintentionally foster environments where unethical behaviours become normalised. The findings, published in the journal Human Relations, introduce the concept of “organisational moral disengagement,” a framework that explains how groups collectively suspend moral standards, enabling unethical actions.
The research, conducted by Professor Roberta Fida, Dr. Irene Skovgaard-Smith, and an international team, analysed data from thousands of employees across various sectors. It highlighted how moral disengagement operates at an organisational level, not merely as a collection of individual behaviours. This collective mindset can justify or even encourage unethical practices that harm clients, communities, and the environment.
High-profile examples
The Volkswagen emissions scandal is a striking example cited in the study. Managers and engineers in the company were found to have collaborated on designing and concealing devices that cheated emissions testing. Similarly, the Grenfell Tower Inquiry revealed that companies manufacturing cladding panels and insulation products manipulated testing processes, misrepresented data, and misled the market.
The study suggested that such unethical practices often stem from mechanisms within organisations that rationalise harmful behaviours as acceptable or even beneficial. Professor Fida explained, “For instance, use of euphemistic language is common, such as referring to price rigging as ‘stabilising prices’, thereby making unethical practices sound benign. Unethical actions may also be rationalised as comparatively harmless, for example, ‘it’s not as bad as what our competitors are doing’ or ‘our products are safer than the alternatives’.”
Mechanisms of moral disengagement
One core mechanism identified in the study is the “diffusion of responsibility.” Dr. Skovgaard-Smith noted, “Complex organisational structures, systems and procedures often obscure how decisions are made and who is responsible. This means that unethical decisions can be attributed to the system rather than personal choice or responsibility.”
This detachment is further amplified through bureaucratic procedures, global value chains, and technology, which conceal the harmful consequences of organisational activities. Such systems allow morally questionable practices to persist unchecked and appear routine.
Implications for corporate culture
The researchers emphasised that organisational moral disengagement could create a culture where employees feel pressured to remain silent about unethical practices. This silence, often justified as being for the “greater good” of the organisation, perpetuates a cycle where harmful behaviours become normalised.
“The study also sheds light on how organisations cultivate environments where people stay silent about unethical practices,” Dr. Skovgaard-Smith noted. “When such practices are justified as being for the ‘greater good’ of the organisation, employees may feel pressure to remain silent rather than risk speaking up. This silence can reinforce a vicious cycle where unethical practices become normalised.”
Professor Fida stressed the importance of fostering ethical corporate cultures to counteract these dynamics. Leaders and policymakers are encouraged to recognise how collective disengagement operates and implement measures to reinforce moral accountability.