Plagiarism: What would you do...??

Over the past few years and especially the last couple of months, I have come across articles that some media outlets have blatantly copied from another without giving any credit for it and passing it off as their own work. I may have also helped the media outlets in identifying such plagiarised work of theirs and have managed to get the offending outlet to remove it online or then give credit to the deserving party.

However, I have also come across people that have taken another's work and passed it off as their own. This has been in the realm of their professional work as well as studies. A couple of friends  were heavily penalized by their Universities for plagiarism and were suspended. Recently I came across a friends MBA dissertation that has been lifted off word by word. This a 50+ page dissertation and maybe 3-5 lines are hers, which includes her name. She has already 'earned her MBA' and is now married and also has a decent job because of the degree.

What would you do? Inform your friend what you discovered? Inform the spouse if you also know them pretty well? Approach the University? Approach the Employer? What would you do if it's your spouse? Would you feel cheated, lied to? What action can be taken against Universities that accept such dissertations and projects without even verifying the authenticity of the work? Do they claim responsibility if such work has been approved by them and the student 'earns' the degree? Even if its a few years after the student 'earns' the degree can they do something about it?

I'm hoping for lots of comments and suggestions. Do oblige me.

Cheers!