Employees feel the need to lie to avoid punishment or firing at work and do whatever it takes to get ahead. Whatever they do, they feel that it is unintentional and believe that the motives are good. Good people at work have a hard time coming forward and reporting unethical behavior for fear of being labeled. People are afraid of being seen differently by colleagues, such as complaining, damaging relationships, being blamed for the problem, or retaliation from the unethical person. One theory that tries to explain this type of behavior is social exchange theory. “The theory suggests that all employees are in a social exchange relationship at work: they give and receive. (Furnham)” Lawrence Kohlberg is a psychologist whose work has answered many questions about why we are cruel to others when faced with ethical dilemmas. Kohlberg explains that people go through six stages of moral development. These six phases are divided into 3 levels: Preconventional, Conventional and Postconventional. Each of the levels represents what an individual believes society's expectations of him or her are. At the preconventional level the person does not believe he is exempt from the rules. Conventional levels regulated by society are extremely important for the person. The postconventional individual believes in governing principles