This article advances research on moral responsibility in organizations by drawing on both philosophical virtue ethics grounded in the Aristotelian tradition and Positive Organizational Scholarship research concerned with virtuousness. The article discusses the very conditions that make possible the realization of virtues and virtuousness, respectively. These conditions ground notions of moral responsibility and the resulting praise or blame on organizational contexts. Thus, we analyze the way individuals and organizations may be ascribed interconnected degrees of retrospective moral responsibility and blame as (...) depending on the interplay between the individual conditions leading to virtue and the organizational conditions leading to virtuousness. Based on this analysis, we develop a two‐level account of moral responsibility in organizations that connects individual and organizational moral responsibility through the concepts of virtue and virtuousness. This is further operationalized into practical guidelines to ascribe degrees of individual and organizational blame, which can be used as a tool by managers, policymakers, or industry regulators. (shrink)