You and the rest of the people around you know that something is going on with your manager. He or she is doing things that are, at the very least, unethical, if not outright illegal. But because it's the boss, no one wants to say or do anything. What do you do about that?
Over at Monster.com, Roberta Chinsky Matuson has some suggestions.
The first thing to do is find out just how many others in the department or within the company are aware of what's going on. Always remember that there is "safety in numbers." It may seem like no one else wants to say anything, but maybe people are just waiting to be asked. Perhaps several of you can get together and approach a senior manager to discuss the issue.
Before approaching anyone else about the situation make sure you have all of your facts in order. If you have documentation to back up your complaints, that will make your argument stronger. Being open and honest with the upper managers is also key.
Finally, you should be sure that you actually want to stay in the job you have. Sure, the job may seem perfect, but just how perfect can it be if the boss is creating problems? If you decide that moving elsewhere is the best situation, then prepare your resume and your own mind for a job search.
Just because your boss is doing things that are completely unethical does not mean you need to compromise your own morals. It takes courage, but you can face up to your manager and maybe improve things for everyone else in the process.