Pitfalls in Ethical Decision-Making: Settling, Fading, and Drift in Psychological Practice


John Gavazzi, PsyD, ABPP & Samuel Knapp, Ed.D., ABPP
September 8, 2025

The American Psychological Association’s Ethical Principles and Code of Conduct (2017) provides the foundations and standards for addressing ethical practice. However, these standards cannot provide direction for psychologists in every situation (Cicero, 2021). Therefore, psychologists need a decision-making model when ethics codes or laws do not provide adequate direction. Nonetheless, practitioners frequently encounter subtle processes undermining their ability to make the best decisions. Three of these influences are processes the authors label as ethical settling, ethical fading, and ethical drift. Ethical settling is the guiding of one’s decisions by the minimum required by laws or ethics codes; ethical fading is failing to consider the ethical implications of a decision (Bazerman & Tenbrunsel, 2011); ethical drift is the rationalization of less-than-optimal decisions (Bourke et al., 2021). By recognizing these challenges, psychologists can adopt deliberate strategies to enhance their ethical awareness and to better guard against the subtle forces contributing to compromised ethical decision-making. This article will review the challenges to quality ethical decision-making and provide recommendations for psychologists to avoid falling into these pitfalls.
Ethical Settling: Lowering the Bar
A positive ethics approach encourages psychologists to integrate ethical principles with personal values and strive for exemplary conduct, rather than focusing primarily on avoiding punishment for violating laws or ethics codes (Knapp et al., 2018). Knapp and Fingerhut (2024) described just-good-enough thinking in which psychologists settle for a solution that meets only the minimal legal requirements. This ethical settling approach represents a shift from aspirational ethical standards to minimal compliance with basic rules. Rather than striving for the highest ethical conduct, practitioners emphasize what is minimally required to avoid disciplinary actions or allegations of negligence. This tendency reduces complex clinical and values-based considerations to simplified behavioral guidelines. When psychologists adopt a “floor” rather than a “ceiling” approach to ethics, they risk providing sub-optimal care that does not fully respect patient dignity, well-being, and autonomy.
Consider the following example. A psychologist conducted an initial assessment when the patient revealed he had thoughts of suicide. The alarmed psychologist then informed the patient’s spouse without conferring with the patient regarding this decision or exploring less intrusive ways to ensure the patient’s safety. While it is possible that notifying the spouse may have reduced the immediate risk of a suicide attempt, it jeopardized losing the trust of the patient and his willingness to be honest with the psychologist. It may also deter the patient from seeking mental health services in the future. Ultimately, the actions of this psychologist may actually increase the possibility of a future suicide attempt.
The psychologist in the above example may justify their decision on the basis that it ensured the safety of the patient and that it was legal (depending on the state where the psychologist practices) to disclose this information without the patient’s consent when there is an increased risk for suicidality. Nonetheless, doing something that is legal does not mean one has made the best ethical decision. The psychologist failed to consider other less intrusive ways to protect the patient’s safety, such as collaboratively creating a safety plan with the patient or addressing the shame and self-stigma that kept the patient from disclosing his suicidal thoughts to others. It is possible that, given the totality of such situations, psychologists may have to inform a significant other of a patient’s suicidal endorsement without that patient’s consent. However, such actions should be a last resort and only after less intrusive interventions have failed or are not feasible, and an effort has been made to include the patient in the decision-making process.
The psychologist in question did not maintain bad intentions or motives when caring for this patient. Perhaps they lacked training in effective interventions with suicidal patients and/or personal reasons caused them to overreact to the patient’s disclosures. Nonetheless, they hastily chose an action which, although legal, might not have been the optimal one in this situation. When psychologists focus solely on meeting minimal legal or procedural requirements, they may overlook the broader ethical obligations that define exemplary practice.
Ethical Fading: When Ethics Disappear from View
Ethical fading occurs when the ethical dimensions of a decision recede from conscious awareness, overshadowed by other salient factors, such as economic pressures, efficiency demands, or personal convenience (Bazerman & Tenbrunsel, 2011). This often unfolds as professionals direct their attention away from ethical imperatives and toward other goals (Tenbrunsel & Messick, 2004).
Consider the following example. A psychologist in a rural setting initially maintained ethical boundaries with his patients, however, these boundaries became more relaxed over time. Without careful deliberation, he attended a former patient’s new business opening, offered informal advice to a patient’s spouse at a community event, and hosted parties attended by former patients. The original concerns about boundaries became less important as he allowed his desire to fit into the community to dictate his actions, which caused him to enter into unwise, multiple/dual relationships that could compromise his objectivity and effectiveness.
As these interactions became normalized for the psychologist, the awareness of his ethical obligations diminished. Without deliberate ethical reflection, his recognition of potential role conflicts faded, and important risks, such as compromised objectivity, confidentiality concerns, and potential patient exploitation, went unaddressed. Psychologists in rural areas often need to be more flexible with boundaries considering they may frequently encounter current or former patients in social or business settings. Nonetheless, the goal is to balance competing factors carefully and make boundary crossings with deliberation; not to ignore boundary issues entirely.
Ethical Drift: Rationalizing Poor Decisions
Ethical drift is similar to ethical fading in that psychologists start with awareness of the ethical issues. In ethical fading, psychologists gradually and likely unconsciously direct their attention away from ethical issues and onto other priorities. When engaging in ethical drift, psychologists gradually move away from professional standards while continuing to think about ethical issues, consciously developing rationales to justify their deviations from acceptable standards of conduct (Bourke et al., 2021).
This detachment from sound ethical reasoning facilitates incremental compromises, as the lack of coherent guidelines fosters rationalizations that normalize deviations. Over time, even significant breaches may go unaddressed as psychologists no longer use internal moral frameworks or external ethical benchmarks to recognize their departure from accepted standards. Repeated compromises reinforce a fragmented approach in which decisions are driven more by convenience and self-serving desires than by sound ethical reasoning.
Consider the following example. A psychologist initially adhered to appropriate professional boundaries. However, ethical drift began with accepting a small gift from a patient without processing the meaning of the gift, which she rationalized as simply being a polite gesture. Over time, she shared personal anecdotes unrelated to patient needs, which she justified as an effort to build rapport. Then, she became more directive in her advice to patients on their work and marital issues, which she argued was using psychotherapy time efficiently. Eventually, a patient requested a social media connection and the psychologist granted it, which she justified as added support and respect for the patient’s needs. Unlike the rural psychologist who engaged in ethical fading without being consciously aware of it, this psychologist knew she was deviating from standards but created elaborate rationales for her behavior.
This drift perspective highlights that unconscious cognitive processes can influence ethical decision-making. Individuals often depend on instinct rather than deliberate, rational thought, making them susceptible to cognitive biases and irrational thought processes (Moore, 2009). As psychologists normalize these deviations over time, their sensitivity to ethical concerns and vigilance to maintain boundaries may diminish, and their decisions may become increasingly opportunistic. This incremental process allows minor compromises to pave the way for more substantial violations, although the psychologists may contend they have virtuous intentions. Without deliberate ethical reflection and consultation related to countertransferential dynamics, psychologists may find themselves unwittingly harming patients yet continue to perceive their actions as justified within their professional role.
Clinical Practice Recommendations
To counteract these pitfalls, psychologists can adopt habits that reinforce ethical vigilance and aspirational practices. The following are clinical practice recommendations for maintaining an ethical and professional standard of care.
Adopt a positive ethics approach
Although the authors have no data on how many psychologists adopt a “floor” approach to ethics, such thinking appears to be pervasive based on professional experiences. Perhaps these psychologists were unfortunate to have ethics instructors who only emphasized laws, enforceable codes, and disciplinary procedures in their ethics classes (Knapp et al., 2018). Alternatively, perhaps they have a highly anxious nature that overemphasizes personal threats. Of course, one needs to know the laws and rules that govern the profession, but ethics is much more than that. Among other considerations, it means genuinely caring for people and proactively seeking out ways to help them in a respectful and caring manner.
The study of ethics should go beyond enforceable ethical standards or laws and focus on overarching principles and values. This means intentionally moving beyond a “floor” approach that focuses primarily on avoiding violations and embracing a “ceiling” approach that focuses on aspiring to the highest ethical ideals. It involves actively integrating ethical principles (like beneficence and fidelity) with one’s daily work and striving for exemplary conduct in all professional activities. The goal is to live out one’s virtues of compassion and care within the framework of one’s professional role.
Keep ethics in mind
Psychologists can counteract the tendency for ethical fading by keeping ethical issues at the forefront of their professional decision-making. The goal is to have psychologists consider the ethical dimensions of all their clinical work. Ethical reflection should not only be something to engage in when one feels in a bind or quandary. Instead, it should be habitually incorporated into one’s day-to-day work. Psychologists can routinely ask themselves questions such as, “What is best for this patient?” (promoting beneficence), or, “How can this patient become really engaged in treatment?” (showing respect for patient autonomy).
Psychologists can improve their ethical sensitivity by setting aside time for regular self-reflection, considering immediate practicalities and personal biases, values, and vulnerabilities. They must also commit to ongoing ethical education and growth throughout their careers. This lifelong learning approach could involve attending workshops, participating in peer consultation groups, conducting case reviews that focus on ethics, engaging in structured journaling, or regularly reviewing relevant literature and ethical guidelines.
Challenge your ethical thinking
Everyone will make ethical mistakes, especially when tired, fatigued, or distracted. Situations that are more ethically complicated or ambiguous, such as those involved with managing complex patient dynamics, responding under time pressure, or balancing conflicting professional roles, increase the risk of ethical errors.
Psychologists can guard against these influences by being aware of how emotions or situations may influence their judgment. Consequently, it is essential to remain aware of personal stress levels and intentionally slow down when making important clinical decisions, especially in high-risk situations. They can consult with a trusted colleague or a paid consultant who can provide critical insight and prevent ethical missteps, particularly with patients who evoke strong countertransference reactions. Ideally, psychologists will be part of an ongoing peer group that will support them when they need it and challenge them when appropriate.
Leverage step-by-step ethical frameworks
In cases where ethical dilemmas are unclear, structured decision-making models (e.g., Johnson et al., 2021; Suarez et al., 2023) provide a valuable roadmap. These frameworks encourage methodical analysis by prompting reflection on key factors, such as relevant ethical principles, emotional constraints, cognitive biases, competing priorities, and contextual issues. By systematically working through these elements, psychologists can move beyond instinctive reactions and align their choices with ethical principles, professional standards, and sound clinical reasoning. It is helpful to overlearn a decision-making model so that one can retrieve it easily during times of stress.
By proactively embedding these strategies into everyday practice, psychologists can sustain the integrity of their work, uphold the American Psychological Association’s core principles (2017), and ultimately better serve their patients. Recognizing and remedying ethical settling, ethical fading, and ethical drift is not merely a matter of avoiding disciplinary action—it is a central personal and moral commitment to the practice of psychology.
