Workers should be wary of shady business deals

These minor infractions, she says, can start to erode behavior. "Once the ethical line has been crossed, an institutionalization of corruption can occur in which unethical acts become a common part of daily activities and people often have a vested interest in remaining quiet," she says.

Jeffrey Kaufmann, an assistant professor of management at Iowa State University, studied the behavior of nearly 50 students from another midwestern university who had cheated on a take-home exam and found they were able to do so because they distanced themselves from their actions and rationalize their behavior.

But, he adds, the rise in unethical acts today may be more a function of economic uncertainty.

"Most people are concerned about job loss, the price of oil, etc.," he explains. "When people get insecure, there's more of a temptation to cut corners — to try and get that little bit extra."

One interesting finding in the Ethics Resource Center study was that women seemed to have a higher ethical calling. When asked if they reported observed misconduct, 64 percent of women said they had, while only 54 percent of men did.

"Women think about ethics much more in terms of relationships," says the Center’s Harned. "Women are more concerned about what harm will be done to someone else if they don’t report misconduct. That’s how they’re wired."

On a positive note, the fact that more people are reporting unethical behavior may be a sign that companies are indeed doing a better job making it clear to employees what is inappropriate, says Richard Cellini, vice president of Integrity Interactive, a company that provides businesses with ethics policy tools. “An upsurge in incidences reported is in response to robust training and a robust code of employment,” he adds.

The problem Cellini sees is middle managers that don’t have the power or the tools to deal with these issues when they do come up.

Here are some tips for employees and managers from Mitchell Kusy, co-author of a "Manager’s Desktop Consultant: Just-in-Time Solutions to the Top People Problems That Keep You Up at Night."

Determine if the act is indeed unethical by using this 3-step checklist:

1. Is it legal or at least a non-violation of company policy?
2. Is it fair and balanced?  Are people being treating fairly in both the short and long term?
3. How will I feel if I do nothing? If I act?

Then assess whether your actions will affect your career by revisiting number three above. “If you're going to feel horrible for either doing/not doing something, your career may not matter,” he says.

Don't "catastrophize."

"Acting ethically is rarely a career-destroyer," he notes. "While it certainly can happen, your own worth may be more important than working within a specific organization that promotes unethical behaviors.”

And, he points out, jobs are increasingly more plentiful today. “So, while it could affect your career within the organization (and it always depends on the organization), it is less likely it will affect your career in other organizations."

And if you’re the one possibly engaged in unethical behavior, you can also use the 3-step test.

"Depending upon your answers, you may want to validate this with someone else you trust," he says. "Obviously, if you discover that it's illegal or violates company policy, you could be liable."

But nothing is clear-cut. "It will be something that is in a gray area," he adds, "because if you're asking this question, you probably have a good conscience that is operating in full swing here."

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