The kinds of ethical lapses that corrode workplace culture don’t always come with flashing red lights and warning bells. In fact, it’s the ostensibly minor actions, perpetually ignored over weeks and even years, that could have the most detrimental effects, argues Ethico’s Nick Gallo, who argues that leaders should hold the line on ethics — even when problematic behavior seems minor.
A joke that crosses a line. A favor for a friend that wasn’t quite fair. A shortcut taken because it seemed harmless at the time. These types of issues don’t make the news, but they eat away at a company’s culture one inch at a time. They corrode slowly, and if nobody steps in, the damage can be difficult to undo.
Over time, the choice to ignore these everyday ethical lapses sends a clear message: This kind of behavior is OK here.
Let’s look at the data. About 14% of US workers say they sometimes feel pressured to compromise their ethical standards to get their jobs done, according to a 2024 report by the Institute of Business Ethics (IBE), just under the global average of 15% who said the same.
And this pressure is not always top-down. It often comes from seeing others break rules and succeed, watching as managers ignore clear violations or getting the sense that “this is just how things work here.” A Gartner survey found that the majority of workplace misconduct goes unreported, while the IBE survey referenced above found that almost half of those who did report a concern experienced retaliation or another form of personal disadvantage as a result.
That kind of silence becomes culture. And once that culture takes hold, it’s hard to rebuild trust.
What everyday lapses look like
Let’s talk about what an actual ethical issue actually looks like in everyday work life.
- Offhand comments that cross the line: Someone makes a “joke” about gender, race or age. Everyone hears it, but no one says anything.
- Overlooking repeated tardiness or missed deadlines: When one person is always late or cuts corners and that behavior goes ignored, others start wondering if doing the right thing even matters.
- Giving stretch assignments only to a select few: If new opportunities always land with the same inner circle, others start disengaging. It may not look like favoritism at first glance, but it feels like it.
- Using office supplies or accounts for personal errands: It starts with printing a few birthday invitations, then expands to company credit cards used for “gray area” purchases.
- Skipping proper approvals just this once: Maybe it’s a project that’s urgent, or maybe someone doesn’t want to deal with red tape. But the more it happens, the less the rules feel like they matter.
Individually, these things can seem minor. But collectively, they shift the tone of the workplace. People start to wonder what other rules don’t apply, they lose motivation to speak up or assume nothing will change if they do speak up and, finally, they quietly disengage. In the US, employee engagement is near a 10-year low, according to Gallup, while an MIT Sloan Management Review study linked toxic culture to employee attrition at a rate more than 10 times higher than compensation at the height of the Great Resignation in 2021.
That’s not just turnover. That’s institutional knowledge lost, morale slipping and reputations damaged. Over time, these behaviors create a place where good people either leave or go quiet.
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Read moreDetailsWhy people stay silent
If these things are so damaging, why don’t more people speak up? It’s not because they don’t care. Most people want to do the right thing, but the reality is speaking up can feel risky, uncomfortable or even pointless.
- Fear of retaliation: This is the biggest reason. The IBE survey referenced earlier indicated that among people who did report a workplace concern, almost half (49%) experienced some form of retaliation. That’s enough to make anyone think twice.
- Lack of trust in leadership: If employees have seen previous complaints swept under the rug — or worse, punished — they lose faith that anything will change.
- Social pressure: No one wants to be the “difficult one.” In tight-knit teams, calling out a problem can feel like betrayal and people will stay quiet to keep the peace.
- Unclear reporting channels: If people don’t know where or how to report something or if the process is confusing, they often give up.
- Cultural silence: In some workplaces, not speaking up has become the norm. People assume everyone else is OK with what’s happening, so they stay silent, too.
Real-world examples show how damaging this can be: At Activision Blizzard, employees stayed silent for years amid allegations of widespread harassment. When people did come forward, HR reportedly failed to protect them. Retaliation followed, and the silence deepened. At the Queensland Fire Department, a 2023 review revealed a “culture of silence” so deep that staff said they’d rather resign than report bullying or misconduct. The fear of backlash was greater than the hope for justice.
Silence isn’t just about fear. It’s also about systems that don’t work and leaders who don’t listen. If companies want to build ethical cultures, they have to fix both. Because when people don’t feel safe to speak up, everything else starts to break down.
What ethical leadership looks like
What can leaders do to shift this? It doesn’t take a massive overhaul. It just takes consistency. Here are steps that actually work:
1. Set clear expectations
Make values visible, and revisit them often. Make sure everyone knows what’s OK and what isn’t.
2. Lead by example
People watch what leaders do more than what they say. If you cut corners, they will, too.
3. Normalize speaking up
Praise those who raise concerns. Don’t treat them as troublemakers. Make speaking up part of “how we do things here.”
4. Reward integrity
Tie promotions and recognition to ethical behavior, not just performance.
5. Create safe channels
Offer multiple ways to report concerns, anonymously if needed. Make it clear that retaliation isn’t tolerated.
6. Watch for patterns
Track reports and behaviors. Look for trends that may point to bigger culture issues rather than assuming all problems are one-offs.
Nick Gallo is the chief servant and co-CEO of Ethico, which offers compliance hotline services, sanction and license monitoring and workforce eLearning software and services. He is a student of behavioral economics and organizational psychology. Through his studies, he has worked with and analyzed hundreds of organizations over his career in advisory services, private equity and compliance. 
