Over the past decade, there has been an increased number of highly publicized ethical scandals that have caused harm to the organizations they serve. These ethical lapses have resulted in significant financial and reputational damage to these organizations. Often, these scandals result from the decisions of leaders within the organization who are perceived by society to have taken unethical actions. In response to these lapses, ethical leadership has gained prominence as a leadership theory that serves as a defense against unethical employee behaviors and organizational misconduct. Ethical leadership is defined as leadership grounded in both certain character behaviors and the reinforcement of those behaviors to others. Research shows that leaders who their followers perceive as ethical leaders tend to see them as role models that they emulate, with a corresponding positive impact on their organizations. However, the effect of ethical leadership is not widely understood, as a lack of consensus among scholars has led to a dearth of research. More research is being conducted, and further investigation is needed to examine the effects of leadership on ethical practices within organizations.