How to Avoid Moral Blindness

1. Be Proactive, Not Reactive

One of the most common forms of moral blindness is a reactive approach to ethical issues—addressing problems only after they’ve been exposed or criticised. To avoid this, businesses should take a proactive stance on ethics, identifying potential risks and addressing them before they become issues. Regularly review your supply chain, business practices, and policies to ensure alignment with your values.

2. Lead with a Strong Ethical Framework

Having a clear ethical framework is essential for guiding decisions at all levels of the business. This framework should be rooted in your core values and clearly outline what behaviours and practices are acceptable and unacceptable. For small businesses, this means prioritising principles over short-term profits and avoiding compromises that could damage your integrity.

Example: An accountancy firm could adopt a code of ethics that goes beyond legal requirements, focusing on fairness, transparency, and honest reporting. By sharing this code with both clients and staff, the firm sets clear expectations and demonstrates its commitment to upholding integrity in every interaction.

3. Foster a Culture of Ethical Accountability

Creating a culture of accountability means encouraging employees to speak up when they see something that contradicts the company’s values. Establishing mechanisms for reporting and addressing ethical concerns, such as anonymous whistleblowing channels, reinforces the idea that doing the right thing is everyone’s responsibility.

Example: A law firm could implement an ethics review committee that meets quarterly to evaluate practices and decisions through an ethical lens. This committee would be responsible for identifying potential blind spots and recommending improvements.

4. Take Ownership of Mistakes and Address Them Transparently

Even with the best intentions, mistakes can happen. What matters to NEOs is how businesses respond when confronted with ethical lapses. Rather than deflect blame or minimise the issue, acknowledge the mistake openly and demonstrate a commitment to fixing it. This transparency reinforces trust and shows that your business values doing what’s right.

Example: A sustainable fashion brand that discovers an unethical supplier should immediately cut ties, communicate the issue to customers, and outline the steps being taken to prevent it from happening again. This level of transparency is crucial in maintaining credibility and trust.