Whether it was delivering honest, but bad, news to someone or owning up to a mistake in your own work, we've all had a difficult time in doing the right thing during our career. For this question, your interviewer is looking to gauge your moral compass by having you talk through a situation where doing the right thing was difficult and having you talk about how you overcame that situation. In your answer, try to hit on the importance of having integrity in all that you do and the overall importance of doing things right versus taking shortcuts.
"Last year, I was working on designing a prototype for a customer and in that design process, I asked to borrow some expensive equipment from the customer that would help during my design process. Having a great working relationship with them up to that point, they let me take it with me back to my office. Later that week, realized that I had lost one of the pieces. I retraced my steps to every place I could remember and searched through my car several times, still to no avail. Immediately, I did the right thing and called my contact with the customer right away and owned up to my mistake. While it would've been easy to place blame elsewhere, I am a firm believer in forgiveness for honesty and doing what is right. The customer, while upset initially over the phone, wasn't hesitant to forgive me for the mistake and we maintain a great relationship to this day."
"For this question, I'll go back to the time that I was monitoring personal usage of company equipment as the IT Manager of a small organization. We had pretty strict policies regarding personal usage of company phones and emails. I close colleague of mine was blatantly violating several of the policies and after a first warning from me, the issues still continued. The easy thing to do would've been to turn a blind eye, but I'm not about that whatsoever. Wasted time and company resources effect everyone in the end and I didn't hesitate to approach the colleague's leader with the issue at that point for them to handle disciplinary action from there."