A controversial report on unethical activities at colleges and universities released last week by the Carnegie Foundation drew mixed responses from Harvard students, faculty members, and administrators yesterday.

The report warns students and institutions that "ethical deterioration" is threatening academic integrity in American higher education, and cites several common signs of "deterioration":

"Inflation of grades by faculty member";

"Theft and destruction of valuable University property--most specifically library books and journals"; and

"Misuse by students of public financial aid."

Harvey C. Mansfield Jr. '53, professor of Government, said yesterday he believes grade inflation is a major problem at Harvard. "Thirty-seven per cent of the students average above A-minus. This is an outrageous percentage," he said.

Donald H. Fleming, Trumbull Professor of American History, said yesterday students deserve higher grades today because they work harder to compete for admission to graduate schools. "Most students ought to be able to at least get Bs," he added.

A recent study by the University's Office of Instructional Research and Evaluation shows grade averages have not increased at Harvard since 1970.

Edward B. Doctoroff, head of the College library circulation services, said yesterday, "Recent sample inventories show that a healthy percentage of our collection is accounted for."

"The only problem I see is the tearing of pages out of journals since the cost of copying went up," he added.

Frank L. Lowenstein '82 said yesterday. "Theft and vandalism exist here at Harvard just like anywhere else, but it's not a major part of the academic scene."

A student who wished to remain anonymous said yesterday. "The only unethical thing going on here that's getting out of hand is failure of many students to inform the financial aid office of non-Harvard scholarships."

Martha C. Lyman, director of financial aid, said yesterday organizations awarding scholarships to students usually inform the financial aid office.

"In any case, the basic feeling is that students here are honest," she said