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Home/Blog/The Slow Erosion of Ethics in Psychology
A psychologist noticing concentric ethical boundaries gradually drifting out of alignment
Professional Practicepsychology ethics

The Slow Erosion of Ethics in Psychology

How ethical fading, workplace culture and gradual normalisation can weaken psychological practice—and how practitioners, supervisors and organisations can respond.

By Ethan Smith25 September 202612 min read2481 words
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When “That Doesn’t Apply in the Real World” Becomes a Warning Sign

Ethical standards rarely disappear through one dramatic decision. More often, they are gradually reframed as naïve, impractical or incompatible with how a workplace operates.

University teaching can present ethical decisions more neatly than practice allows. Real clients bring competing needs. Services have limited time and resources. Psychologists work inside imperfect systems, and the appropriate response is not always obvious.

That complexity is real. But complexity does not make ethical principles irrelevant.

The warning sign is when “the real world” stops meaning apply the principle thoughtfully and starts meaning:

  • We do not have time to revisit consent.
  • Everyone writes their notes this way.
  • The client will never see the record.
  • Boundaries have to be flexible here.
  • Raising concerns will make you difficult to supervise.
  • The service needs you to conduct the assessment.
  • This is simply how private practice works.
  • You will understand once you have more experience.

None of these statements automatically proves that misconduct has occurred. Context matters. But when “the real world” is used to end ethical reflection rather than deepen it, it deserves closer attention.

Ethical fading

The behavioural ethics literature uses the term ethical fading to describe what happens when the ethical dimensions of a decision become less visible.

The person making the decision may not consciously decide to ignore ethics. Instead, the situation is reframed around something else:

  • efficiency
  • loyalty
  • revenue
  • productivity
  • reputation
  • avoiding conflict
  • meeting a deadline
  • keeping a manager satisfied

Once the problem is understood primarily as a scheduling, financial or interpersonal problem, the ethical question can fade into the background.

A psychologist might begin by asking, “How do we fit this client into the service?” rather than, “Are we competent and adequately resourced to provide what this client needs?”

A supervisor might ask, “How can we get these reports completed?” before asking whether the supervisee has sufficient support and oversight to complete them safely.

A practice owner might focus on whether a service can be billed rather than whether it is clinically indicated.

The people involved may still see themselves as ethical professionals. That is partly what makes ethical fading difficult to recognise. It does not always feel like consciously choosing profit, convenience or loyalty over client welfare.

Ethics becomes inconvenient before it becomes absent

Ethical drift can begin with small accommodations:

  • copying information forward without checking whether it remains accurate
  • accepting work outside one’s competence because the service needs capacity
  • minimising a conflict of interest because addressing it would be disruptive
  • delaying a difficult disclosure
  • treating supervision as an administrative requirement
  • allowing billing targets to influence clinical decisions
  • omitting important context because it complicates a report
  • discouraging questions that slow down workflow

One isolated error does not establish a pattern. People make mistakes, services face genuine constraints, and reasonable practitioners can disagree.

The concern is what happens when questionable practices are repeatedly accepted without review.

Sociologist Diane Vaughan used the term normalisation of deviance in her analysis of the Challenger disaster. The concept describes how departures from an expected standard can gradually become accepted when they are repeated without an obvious adverse outcome.

Nothing went wrong last time, so the practice begins to feel safe.

The exception becomes routine. The routine becomes the local standard. Eventually, the original concern can appear excessive to anyone who has adapted to the new baseline.

The concept comes from organisational and safety research, not psychology practice. However, it offers a useful way of thinking about how professional standards can be weakened gradually without a single person announcing that the standards no longer matter.

A psychologist watching a sequence of complete rings gradually become offset, broken and incomplete across an empty cream field
Repeated departures can begin to feel normal when no immediate harm is visible.

The hidden curriculum of professional practice

The formal curriculum tells students what the profession expects.

It teaches informed consent, confidentiality, competence, boundaries, accurate records, cultural responsiveness, reflective practice and responsibility for professional decisions.

The hidden curriculum teaches what an organisation actually rewards.

Hafferty and Franks developed this idea in medical education, arguing that professional identity is shaped not only by formal teaching but also by the less visible norms operating around it. The framework can also help us examine psychology training and workplaces.

A provisional psychologist may learn that:

  • speed attracts praise
  • uncertainty is interpreted as incompetence
  • asking questions is treated as resistance
  • organisational loyalty matters more than openness
  • supervision is for demonstrating competence rather than exploring uncertainty
  • seniority determines which concerns are taken seriously
  • difficult issues should remain undocumented
  • meeting a target matters more than examining how the target affects care

None of this needs to appear in a policy.

It can be communicated through what receives praise, what attracts criticism, which questions are welcomed and what happens to people who raise uncomfortable concerns.

This is where professional socialisation can shift into moral accommodation.

Experience should deepen ethics, not replace it

University cannot prepare psychologists for every situation they will encounter. Ethical practice is not a matter of mechanically applying a classroom rule without considering context.

Experienced practitioners often develop greater tolerance for uncertainty. They learn that several defensible options may exist, that different obligations can conflict and that an ideal response may not be available.

That is professional development.

But legitimate adaptation should still be explainable. It should be possible to ask:

  • What ethical or professional principle is involved?
  • What information might be missing?
  • Whose interests are being prioritised?
  • What alternatives were considered?
  • What are the foreseeable benefits and risks?
  • Has the client been involved where appropriate?
  • Is the decision within the practitioner’s competence?
  • Is the reasoning documented appropriately?
  • Would the reasoning remain defensible if the power relationship were reversed?
  • Could the decision be explained honestly to the client, a colleague and the regulator?

“The real world” is not itself a justification. It is the context that the justification must survive.

Why provisional psychologists can be particularly exposed

Provisional psychologists are not powerless, but they can occupy a structurally dependent position.

This dependence is explored in more detail in Why Provisional Psychologists Are Structurally Vulnerable, including how supervision, employment and registration progression can converge.

Employment, supervision, internship progress, professional references and access to suitable work may be connected to the same organisation. Sometimes the employer, manager and primary supervisor are the same person. In other settings, the roles are formally separate but remain closely connected.

A concern about consent, competence, documentation or boundaries can therefore also feel like a risk to:

  • employment
  • internship hours
  • supervisor reports
  • access to clients
  • workplace references
  • professional reputation
  • progression towards general registration

Registered psychologists can also face serious consequences for raising concerns. The distinctive issue for provisional psychologists is that several forms of professional dependence may converge during a formative stage of practice.

This can make it difficult to distinguish between:

  • ordinary corrective feedback
  • a legitimate difference in professional judgement
  • a workplace performance issue
  • pressure to accept an ethically questionable practice
  • retaliation for raising a concern

Not every disagreement with a supervisor is evidence of ethical erosion. Supervision necessarily includes challenge, correction and evaluation. The more useful question is whether concerns can be discussed openly, examined against current standards and resolved without humiliation, intimidation or automatic dismissal.

A provisional psychologist standing where three oversized arches converge while an open path remains ahead
Employment, supervision and registration progression can create overlapping forms of professional dependence.

The Australian regulatory standard still applies at work

Australian psychologists practise within professional obligations that do not disappear when they enter a busy workplace.

The Psychology Board of Australia’s Code of conduct for psychologists, effective from 1 December 2025, sets the expectations for professional conduct and safe psychological practice. The Board’s current Professional competencies for psychologists also expect psychologists to recognise and proactively manage ethical dilemmas using sound ethical decision-making processes.

These are not merely university learning objectives.

A workplace can establish procedures, allocate responsibilities and make reasonable operational decisions. It cannot redefine a psychologist’s regulatory obligations through local custom.

“Everyone does it this way” may explain how a practice developed. It does not establish that the practice is appropriate.

Likewise, following an employer’s direction does not automatically resolve the practitioner’s responsibility for their own professional conduct. Hierarchy matters when understanding how a decision occurred, but it does not turn a workplace convention into a professional standard.

Recognising ethical drift

Potential warning signs include:

  • policies being applied selectively
  • repeated pressure to work beyond competence
  • ethical questions being interpreted as disloyalty
  • supervision focusing almost entirely on throughput
  • records being shaped primarily around billing or organisational protection
  • therapeutic, supervisory and managerial roles becoming poorly differentiated
  • concerns being encouraged to remain informal
  • commercial language replacing clinical reasoning
  • “everyone does it” replacing reference to professional standards
  • staff learning that some questions are unsafe to ask
  • discomfort becoming normal rather than investigated

One sign alone does not prove wrongdoing. Some may have reasonable explanations.

Look at the pattern:

  • Does the issue keep recurring?
  • Are concerns examined or dismissed?
  • Can the decision be linked to a professional standard?
  • Is uncertainty acknowledged?
  • Are alternatives genuinely considered?
  • Does the response change when the interests of the client conflict with those of the organisation?
  • What happens to people who ask for clarification?

An ethical workplace does not need everyone to agree. It needs enough psychological safety for disagreement to be examined.

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A brief ethical pause

When something feels wrong, the first step is not necessarily to make an accusation. It may be to slow the decision down and describe the concern more precisely.

A psychologist pausing inside an open ring before several circular pathways branch across an empty cream field
An ethical pause creates space to name the decision, examine the standard and consider alternatives.

1. Name the decision

What exactly is being proposed, requested or omitted?

Avoid beginning with a broad conclusion such as “this workplace is unethical”. Identify the specific decision or practice that requires examination.

2. Identify the people affected

Consider the client, family members, practitioner, supervisee, supervisor, organisation and any third party relying on the work.

Whose interests are most vulnerable to being overlooked?

3. Separate the issues

A situation may contain several different questions:

  • Is this clinically appropriate?
  • Is it within my competence?
  • Does it meet professional standards?
  • Is it lawful?
  • Is it consistent with my internship plan?
  • Is this a workplace dispute?
  • Is immediate safety involved?

These questions may require different sources of advice and different responses.

4. Check the current standard

Return to the relevant regulatory document, legislation, funding rule or professional guidance.

Do not rely only on memory, workplace convention or what another practitioner says they have always done.

5. Consider alternatives

Ask what less risky options were considered. Ethical decision-making becomes weaker when the apparent choice has been reduced to compliance or refusal.

6. Seek appropriate consultation

Consult someone who can examine the issue without simply reinforcing the existing hierarchy.

For provisional psychologists, this may include a Board-approved supervisor, secondary supervisor, professional association, indemnity insurer, workplace representative or another appropriately qualified adviser.

Independent consultation can assist with reasoning, but it does not automatically count as formal internship supervision. Any supervision intended to count towards registration requirements must comply with the applicable approved arrangement.

7. Document carefully

Clinical records should remain accurate, objective and relevant to client care.

A client record should not become a diary of an employment dispute. Workplace, supervisory or regulatory concerns may need to be documented through a different appropriate channel.

Documenting everything indiscriminately can create new privacy and professional problems. The purpose, location and audience of the record matter.

8. Respond proportionately

Not every concern requires a notification or formal complaint. Some issues can be resolved through clarification, supervision, changed procedures or additional training.

Other situations may require formal escalation, particularly when there is a substantial risk to client safety or a clear professional obligation to act.

The response should match the evidence, seriousness and urgency of the concern.

What supervisors and organisations can do

Ethical practice should not depend entirely on whether the least powerful person in the room is willing to object.

Supervisors and organisations can reduce ethical drift by:

  • inviting questions before problems become crises
  • distinguishing uncertainty from incompetence
  • protecting reflective supervision from productivity pressures
  • clearly separating clinical, supervisory and managerial roles
  • documenting how conflicts of interest will be managed
  • reviewing practices that are justified mainly by “how we have always done it”
  • making consultation pathways visible
  • examining incentives created by billing and workload targets
  • responding to concerns without reflexively treating them as accusations
  • modelling how experienced practitioners revise their judgement

Psychological safety does not mean freedom from accountability. It means that people can raise a question, disclose an error or express uncertainty without expecting humiliation or retaliation.

That makes accountability more possible, not less.

A note on the evidence

Ethical fading, normalisation of deviance, the hidden curriculum, moral disengagement and psychological safety were developed across behavioural ethics, organisational research, safety science and medical education.

They are used here as frameworks for examining psychology workplaces. They do not demonstrate that ethical erosion is universal across psychology, nor do they provide prevalence estimates for Australian practice.

There is, however, psychology-specific literature examining how professional vulnerabilities, personal needs, stressors and rationalisation can contribute to ethical problems. These frameworks are most useful as prompts for reflection, not as labels to apply casually to individual practitioners or organisations.

The real world does not suspend professional obligations

Moving from university into practice should make ethical reasoning more capable of handling complexity. It should not make it less connected to the principles underneath it.

The real world brings competing responsibilities, incomplete information, organisational pressure and imperfect choices. Sometimes there is no option without a cost.

That is why ethical reasoning remains necessary.

Experience should help psychologists understand when a principle needs careful interpretation. It should not teach them that the principle can be dismissed whenever it becomes inconvenient.

When “the real world” is used to deepen an ethical conversation, it can be a sign of professional maturity.

When it is used to end the conversation, it becomes a warning sign.

PsychVault's provisional psychology hub brings together related guidance on supervision, boundaries and professional responsibility. For a closer look at the practical safeguards that can fail in unsafe practice, see The Four Horsemen of Unsafe Psychological Practice.


This article provides general educational information and is not legal, regulatory, employment or clinical advice. Requirements and appropriate responses depend on the facts, jurisdiction and practice setting. Regulatory information was checked against Psychology Board of Australia material current at 25 September 2026.

References

Australian Health Practitioner Regulation Agency. (2025). Code of conduct for psychologists. Psychology Board of Australia.

Bandura, A. (1999). Moral disengagement in the perpetration of inhumanities. Personality and Social Psychology Review, 3(3), 193–209. https://doi.org/10.1207/S15327957PSPR0303_3

Edmondson, A. C. (1999). Psychological safety and learning behavior in work teams. Administrative Science Quarterly, 44(2), 350–383. https://doi.org/10.2307/2666999

Hafferty, F. W., & Franks, R. (1994). The hidden curriculum, ethics teaching, and the structure of medical education. Academic Medicine, 69(11), 861–871. https://doi.org/10.1097/00001888-199411000-00001

Psychology Board of Australia. (2025). Professional competencies for psychologists.

Tenbrunsel, A. E., & Messick, D. M. (2004). Ethical fading: The role of self-deception in unethical behavior. Social Justice Research, 17(2), 223–236. https://doi.org/10.1023/B:SORE.0000027411.35832.53

Tjeltveit, A. C., & Gottlieb, M. C. (2010). Avoiding the road to ethical disaster: Overcoming vulnerabilities and developing resilience. Psychotherapy: Theory, Research, Practice, Training, 47(1), 98–110. https://doi.org/10.1037/a0018843

Vaughan, D. (1996). The Challenger launch decision: Risky technology, culture, and deviance at NASA. University of Chicago Press.

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On this page
When “That Doesn’t Apply in the Real World” Becomes a Warning SignEthical fadingEthics becomes inconvenient before it becomes absentThe hidden curriculum of professional practiceExperience should deepen ethics, not replace itWhy provisional psychologists can be particularly exposedThe Australian regulatory standard still applies at workRecognising ethical driftA brief ethical pause1. Name the decision2. Identify the people affected3. Separate the issues4. Check the current standard5. Consider alternatives6. Seek appropriate consultation7. Document carefully8. Respond proportionatelyWhat supervisors and organisations can doA note on the evidenceThe real world does not suspend professional obligationsReferences
Article details
Category: Professional Practice
Published: 25 September 2026
Reading time: 12 min
psychology ethicsprovisional psychologypsychology supervisionAHPRA

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