Rule No. 1: Don't Copy

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Nonetheless, the ethical transgression of a top executive can have powerful repercussions. "If I were a board member or a shareholder, it would raise questions in my mind about how honest, transparent and responsible a CEO is being in other dealings," says Andy Wicks, co-director of the University of Virginia's Olsson Center for Applied Ethics. Jeffrey Sonnenfeld of the Yale School of Management points to the tarnish Swanson leaves on Raytheon, which the CEO had "no problem using as a bully pulpit from which to trumpet his empty clichés."

Lost in all this are the plagiarized. King died two decades ago, but his book remains a best seller for the American Society of Mechanical Engineers, its publisher. Rumsfeld had no comment. As for Barry, whose observation about being nice to waiters was lifted, the whole episode leaves him feeling weirdly connected to the Secretary of Defense--and a bit nervous. "I hope when they build their missiles, they're a little more careful about where they get their information," he says. "Because if they're getting any of that from me--well, if we ever launch anything, it'll land in Vancouver."