Ethics is a primary necessity for long term success in everything we try to achieve, being generally accepted that "good ethics is good business." Given this, managers must clearly adopt the idea of morality and act accordingly. Unfortunately, at the national level, managerial ethics is by far not considered a priority of Romanian managers. Moreover, many of them view the compliance with the code of ethics as a hindrance in the realization of profitable business. This is, however, far from the truth, because managerial ethics confronts the economic opportunities of the company and its social image. In this article, we have tried to present the ways in which managers’ ethics influences employee behavior and the creation of an ethical climate within the organization.