Suppose you have a friend, say he/she's a co-worker, and you know they're doing something wrong. Whether it violates a company policy or not is a unclear, but it's clear that what they're doing is far from "right" or the right thing. You would even consider it morally wrong. This individual also knows the activity is wrong and tries to "hide" it, but knows that you're not stupid and know about it. Do you support (or turn a blind eye to) his activity out of loyalty, even thought you know he's doing something wrong? Or do you go ahead and turn him in, or turn your back on the friendship?