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The blame game spreads quickly because it triggers the perception that one's self-image is under assault and must be protected. Blaming becomes common when people are worried about their safety in an organisation. There is likely to be more blaming going on when people feel their jobs are threatened.
When you see others protecting their egos, you become defensive too. You, then try to protect your own self-image by blaming others for your mistakes.
However, in the long run, such behaviour could effect one's reputation. Further, it is harmful to the organisation and the society as a whole.