The question conjures all sorts of philosophic debate concerning the deeds of "bad" people versus the apathy of "good" people. Is it ok to say nothing if you didn't harm anyone, personally? Is someone who refuses to report child abuse causing some sort of abuse by failing to report? Does it "encourage" future abuse?
Bear in mind whilst we analyze the Penn State situation that everyone is innocent until proven guilty. I have no idea whether the allegations are true or not, and this blog isn't meant to condemn anyone or suggest that someone has, in fact, committed any crime.
That being said...
Questions answered in this blog post: In Kentucky, is failing to report child abuse illegal; is failing to report a crime a crime in itself; what are the criminal charges in the Penn State scandal; can Joe Paterno be charged with criminal charges; can Mike McQueary be charged with criminal charges; were the coaches who knew about the alleged child abuse from Jerry Sandusky supposed to report the child abuse; what is the penalty in Kentucky for failing to report child abuse; how do I find a good Louisville criminal defense lawyer; how do I find a good Louisville child abuse lawyer?