The fall of corporate like Enron showed that ethical decision making within the individual performance of employees is likely to be derived from the impact of leadership. Employees look towards the leaders at workplaces for direction and approval of their work behavior. Hence leaders are likely to mold their ethical behavioral patterns. The words and actions of the leaders create the framework within which individual employees are likely to follow while they work under the policies of such organization. Unethical practices of leaders create ambiguity in the ethical environment of the business organization.
This kind of scenario which directly springs from the actions and intent of the leaders does not present healthy examples to the employees in terms of managing ethical behavior. It is important to note that lack of ethical behavior has other impacts on organization as well. Corporate ethical values and job satisfaction were associated with decreased turnover intention which means that the leadership team of an organization has direct and indirect influence in terms of managing employee turnover.