This review integrates research regarding organizations’ ethical infrastructure and moral disengagement to illustrate the complicated relationship between these constructs. We argue that employee perceptions of strong ethical infrastructures may reduce individuals’ tendencies to rationalize and engage in clearly self-interested unethical behaviors, but might motivate moral disengagement about other behaviors by tapping into members’ desires to preserve a positive self-image and reduce cognitive burden. This research builds upon scholars’ understanding that "good" people can be morally blind and engage in unsavory acts without awareness of the unethical nature of their actions, and suggests that even in organizations with formal and informal systems prioritizing ethics, unethical decisions and behaviors may be rationalized and go unnoticed. Finally, we discuss theoretical and methodological implications—notably that scholars should be concerned about conclusions drawn from employee perceptions about the ethicality of the organizational context, and supplement perceptual measures with direct observation and more objective assessment.