<p>Moral distress among healthcare clinicians is widely acknowledged but persistently misunderstood. The dominant institutional response has been to prescribe individual-level interventions, including resilience training, mindfulness programming, and wellness initiatives, to clinicians whose distress often arises from structural conditions beyond their control. This article argues that moral distress and its severe counterpart, moral injury, often arise from organizational ethics failure, while individual psychological factors shape how that distress is experienced rather than serving as its primary cause. Drawing on Pellegrino’s account of institutional fidelity to the healing relationship, professional virtue ethics, and organizational ethics theory, the article identifies five structural drivers of moral distress, demonstrates that resilience-based responses constitute a form of moral offloading that compounds institutional harm, and proposes a four-component organizational ethics infrastructure as an affirmative institutional obligation. The article further argues that healthcare organizations must develop organizational ethics capacity beyond bedside consultation to include institutional review of the structures and policies that shape clinical practice. A healthcare institution that demands ethical commitment from its clinicians without ensuring the conditions necessary for ethical practice has violated a foundational professional obligation.</p>