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If you saw a co-worker doing something unethical, what would you do?

This is a potential question I could be facing (friend had an interview with the same company a week ago).

My answer would be along the lines of seeing someone coming into work late but reporting in the time sheet as on time. I’d talk to them and warm them that we had someone fired a few weeks ago for the exact same behavior and just warn them and let it go, unless it kept happening some more. (not mentioning it to management)

Now I’m not one to throw anyone under the bus, but I was doing some research on the question and i’ve seen it mentioned that I should be telling management about the issue.

Advice?

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