I think the Ethical Responsibility of an Observer is that ---> if he/she can see other people doing the wrong thing, he/she should tell the person that what he/she is doing isn't right, but if the person doesn't want to listen to what you said, then you cannot do anything but to tell the higher ups (management) and let them act on the wrong doing of the other person. And of course don't copy the wrong doing of the person that you saw.
