When ethical breaches happen, there should be consequences, says Josephson. If your top performer is cheating on an expense report or lying to customers, you're not just tolerating the behavior -- you're teaching your other employees to be unethical, as well, he says. The behavior will likely multiply when others see what you'll overlook. Josephson also cautions that if your top performer is lying or mistreating others, it's likely only a matter of time before he or she does the same to you. Instilling ethics into your organization is probably going to cost more than you want to pay, It's tough to be a model citizen and rein in behavior that, while helping your business earn, isn't on the up-and-up. In the long run, however, the damage that ethical lapses can cause may cost you far more than letting go of an unethical employee or some bad business habits.

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