People feel the urge to label some one, group, or idea, as bad. I get around this by accepting that I am bad. It helps me see the best in everyone else, and makes me hold myself to really high standards. It is sometimes unpleasant though. It's probably some sort of natural calibration process.
I've come to terms with this by denouncing morals and focusing on ethics.
What do you mean by ethics here?
The one thing I try to hold myself to is to maximize individual choice, even if I don't currently agree with some of the choices.