Hi,
I think that all of us in the HR fraternity, at some time or the other, have come across similar situations as described. Some have succumbed to the temptation, while others have stood steadfast to their integrity and professional commitment.
If you have a subordinate who indulges in such malpractices, I think he/ she deserves exemplary punishment - there are no two ways about it. If it is a consultant, black list him. If it is your superior, there are subtle ways of getting across to him/ her on this matter. But, inaction is certainly not the right way forward. Because then you are certainly not helping the cause - but, let me assure you, it is easier said than done.
Regards,
Vasudev