First, comfort those who are doing the right thing and working hard. They need and deserve your support. Secondly, offer help to those doing the wrong thing and working hard. They are trying and they need to be pointed in a different direction. Finally, do not reward those neither working hard nor doing the right thing.
Nothing undermines morale like rewarding the wrong behavior.
We need people focused on the University, on their College and on their Department. They need to find their success within the success of the department and need to feel part of a team. Faculty who are focused more on their outside income activities need to be counseled back into that for which they were called to the academy, namely teaching, research and service within the context of the University and its affiliates. Fifth, seek information and use it. Gather it and disseminate it so that it can be used for accountability purposes and use it to make effective, principled decisions.