> It's like some shared delusion or psychopathy that people seem to believe, because it's in their self-interest to believe it.
A business is not an individual, it's a collection of individuals each doing a specialized task that collectively make up a large system. Applying moral principles that are generally applied to individuals to organizations just doesn't work. There needs to be a different set or prioritization of moral principles to be effective in a large organization or system.
In my example (highly paid attorneys spending inordinate amounts of time negotiating a tiny contract), the attorneys themselves were not bad, they were instructed to zealously negotiate every contract. The finance folks that paid late are not bad, they were charged with keeping high cash reserves and to tolerate a certain level of legal risk.
As a straightforward example for reducing out-right fraud: Most individuals already know that fraud, lying and cheating is bad. If an individual scams someone, they are bad. In contrast, for a business to be "moral", it must routinely audit their work processes to make sure that fraud cannot accidentally occur, and also provide safeguards when "bad" individuals do it intentionally. If there are no safeguards (regardless of whether fraud occurs or not), the company is "bad". Conversely, if stringent and proper safeguards are in place, and yet someone within the organization is nevertheless able to devilishly get around them and commit fraud, then it's possible that the business is still moral.
The point here is that individual morality is not the same as organizational or systems morality. Lots of moral people can come together and become an immoral organization. Similarly, a moral organization can withstand lots of bad people within their ranks.