Politically, it is isolationism. Which is all well and good, until the isolations become in need from outside help and their isolationist's concept may not appear so attractive when under threat.
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Denial.
The word you are looking for is "reject".
The word element that means "to think" is "cogno-" or "cogni-." It is derived from the Latin word "cognoscere," which means "to get to know."
The word that means morally right is "virtuous."
The word that means morally bad is "immoral."