You discover that your supervisor/team leader stole a password and she has been secretly logging into the computer of another team leader to get information about their team’s funding sources. She is aware that you caught her and tells you that this information has helped your team stay competitive and get ahead. She prefers that you keep her secret. How would you handle this situation?

Firstly, to look into the positive side, my team stays competitive and going ahead of others. But when I look overall, then it is not good in the point of organization and not to be continued considering the growth of the organization.

I would advice my Team Lead stating that,

It is not a good work culture or work ethics to steal someone else password
The competitive spirit should not be achieved in a negative way
The action will affect organization's growth and in turn affects the employee's growth
We can achieve success in so many ways, leaving this negative way which promotes both organization and the team, so that we can arrive at win-win situation.