My take on this is that I just don't like hanging out with dishonest people. I wouldn't fire the guy on the spot for one incident, but if there was a pattern of behavior like this I just wouldn't want to be around him. It IS a morality issue, I impose my morality on others, and am not ashamed of it. Am I a prude or am I perfect, no, but I still have the right to chose who I hang out with, and that includes making judgments on their behavior.