The Philippine Military Academy has its very own sets of values and standards formally expressed in its Honor Code. However, there are violations of the Code. The challenge is affirming ethical behavior and establishing an environment for the healthy exercise of peer reporting. This is captured using the PMA Cadet Toleration Questionnaire administered to 253 fourth class cadets. It consists of twelve statements in a 3x2x2 design (perceived severity of the offense – low, moderate & high; emotional closeness- high & low; and bystander intervention – presence and absence of other witnesses). Results show that the majority of the Cadets are most likely to report offenses that are perceived to be “high”; therefore, those perceived as “low severity” will be tolerated. When the offender is a friend, the violation will also be tolerated; while infractions made by a relative stranger will be reported. When the offense is witnessed by another cadet, the respondent will report the violation regardless of perceived severity and emotional closeness with the offender. Class membership and company assignment have no significant influence in dictating one’s ethical decision to report. Therefore, knowing and doing what is right might be more than the scope of the Honor Code and its supposedly progressive manner of indoctrination as one graduates to another year. These situational considerations uncovered how the cadets process and act when infractions are committed. The Academy can restructure situations/policies to encourage peer reporting and reduce the frequency of Honor violations.