Answer:
Report it.
Step-by-step explanation:
In "How Do We Tell Right From Wrong", Joe who saw his friend steal a candy from the store should report it to the store owner because he knows that it is wrong to lie or steal.
Joe should use his conventional moral reasoning when he is put in a such situation where he either has to lie or protect his friend. Conventional moral reasoning will help him understand that community regard stealing as a wrong act even if it is done by a loved one.
So Joe must report his friend first and then help his friend understand that stealing is wrong and one small wrong act could lead to another bigger wrong act if it is not corrected in time.